Makara Acquires Option over Idaho Creek Gold Project
VANCOUVER, August 19, 2020 - Makara Mining Corp. (CSE:MAKA)(FSE:MK0)(OTC PINK:MAKAF) ("Makara" or the "Company") is pleased to announce that it has acquired the right (the "Option") to earn 100% of the Idaho Creek Property ("Idaho" or the "Idaho Property"), which borders the Company's existing Rude Creek Gold Project ("Rude Creek" or the "Rude Creek Property") in the White Gold region of the Yukon, Canada, from ATAC Resources Ltd. (the "Optionor" or "ATAC").
Once earned, the Idaho Property will extend Makara's northern coverage of the prospective geology at its Rude Creek Property by 6 km. The Idaho Property east-west width (6 km) is similar to that of the Rude Creek property (being 7 km). The Idaho Property currently covers 1218 hectares (with potential for expansion up to 1848 hectares) and the Rude Creek Property covers 4157 hectares, for a total land package totalling up to 6005 hectares. Makara is excited to add to its Rude Creek Property through the Option, in that any mineralization discovered on the Rude Creek Property could stretch into the Idaho Property. Through the Option, Makara's land position has increased significantly and our new northern boundary will be directly adjacent to White Gold's large land position in the area with no intervening land.
About the Option
Pursuant to the Option, Makara holds the right to acquire 100% of the Idaho Property by: (i) paying ATAC an aggregate of $150,000 over a four-year period; (ii) issuing ATAC an aggregate of 750,000 common shares over a four-year period (the "Share Consideration"); and (iii) incurring aggregate exploration expenditures at the Idaho Property of $2,000,000 over a four-year period. Upon Makara exercising the Option, ATAC shall be entitled to (i) a 2% NSR royalty, half of which can be purchased by Makara for $1,000,000 and (ii) a one-time discovery fee of $1 for each ounce of gold identified in the earlier of a NI 43-101-compliant (A) measured and indicated resource estimate applicable to the Idaho Property or (B) proven or probable reserve estimate applicable to the Idaho Property, which may be paid out over one (1) year. Any Share Consideration issued to ATAC will be subject to restrictions on resale for a period of six (6) months from the date of issuance.
Idaho Creek Geology
The Idaho Property has very similar geology to Rude Creek. The Idaho claims are almost contiguous with Rude Creek, within 600 meters.
The metallogeny in the Dawson Range is dominated by porphyry and mesothermal vein deposits. Idaho Creek lies 14 km east of the Casino porphyry gold-copper-molybdenum deposit. The Coffee gold project is located further to the northwest of Idaho Creek while gold-silver veins that hosted the former Mt. Nansen mine and Rockhaven Resources' Klaza Project are situated to the southeast. The Idaho Property sits within the Klotassin Batholith. It is bounded to the west by the northeast-trending Dip Creek Fault and to the north by a southeast-trending fault that is inferred to be the northerly extension of the Big Creek Fault. The Big Creek Fault typically exhibits two or more sub parallel structures that are the bounding faults of a two to eight kilometre wide graben. A belt of precious metal bearing veins and porphyry copper-gold prospects, associated with Cretaceous age, subvolcanic quartz-feldspar porphyry intrusions, extends southeasterly from the Coffee project for 120 km along the Big Creek Fault.
The metal signature of the soil geochemical anomalies and the stockwork fracture zones noticed in limited drilling when combined with the good geological setting are indicative of a high level porphyry setting perhaps quite similar to the Casino deposit 12 km to the northwest in conjunction with the Orogenic Gold potential.
Idaho Creek Mineralization
Previous grid soil geochemistry undertaken at the Idaho Property outlined anomalous gold, silver, lead, arsenic and zinc soil values in four main targets across the property, all apparently associated with one or both of two main structural trends related to the Big Creek Fault. The anomalous areas are up to 1,200 by 600 m in size and produced soil geochemical values ranging up to 6,550 ppb Au, 122 ppm Ag, 6,180 ppm Pb, 2,620 ppm As, 2,300 ppm Zn and 1,110 ppm Sb. The average silver to lead ratio for the samples is a particularity encouraging 366 grams /tonne silver per 1% lead.
A total of nine bulldozer trenches with a combined length of 2,398 m were excavated within the main soil geochemical anomalies in the 1980s. The trenches mostly bottomed in frozen soil and exposed only small patches of bedrock. Three types of mineralization identified in trenches or in outcrops include: disseminated sulphides in quartz diorite; chalcedony-calcite veins in limonitic quartz-feldspar porphyry; and sulphide-bearing manganiferous quartz veins.
Exploration renewed in 2006, consisting of 17-line km of induced polarization (IP) surveys and 556 m of reverse circulation drilling. Five percussion drill holes tested beneath float occurrences and soil geochemical anomalies in the western and central part of the property. Collar locations were based solely upon prospecting and geochemical data because IP results were not available prior to drilling. Anomalous gold and silver values were encountered in most holes. The results from holes ID-06-03 and -05, which tested downdip from geochemical anomalies that overly the main IP target, are particularly interesting. ID-06-03 is near a narrow, moderate chargeability anomaly that appears to be near the top of the main anomaly. It encountered two mineralized intervals, with the first returning 0.608 g/t gold and 20.6 g/t silver across 6.10 m starting at 9.14 m and the second yielding 0.551 g/t gold, 32.6 g/t silver, 0.46 % lead and 1.53 % zinc across 3.05 m starting at 73.15 m. ID-06-05 produced two 3.05 m intervals grading 0.33 g/t gold with 70.1 g/t silver and 0.092 g/t gold with 52.3 g/t silver. These intervals were cut from 36.58 and 60.96 m, respectively. None of the holes were drilled deep enough to test the main IP anomalies. In 2006, ATAC staked the Idaho claims, optioned them to Klondike Silver, and conducted an exploration program consisting of geophysical surveys and 556 m of reverse circulation (RC) drilling. The drill results returned an Au-Ag-Pb-Zn metal signature indicative of a high-level porphyry system (Wengzynowski, 2007).
In 2007, 1,118.42 m of diamond drilling was completed in four holes. All four holes intersected elevated gold, silver, lead, zinc associated with steeply dipping structures possibly above a buried porphyry system. The abundance of elevated gold-in-soil remains enigmatic (Smith, 2008).
In 2013, the Geological Survey of Canada completed a 1:100,000 scale regional map around the nearby Casino Cu-Mo-Au porphyry (Minfile 115J 028). During this work, a Casino suite aged porphyritic plug was mapped on the Idaho Creek property (Ryan et al., 2013).
In 2015, a helicopter-borne magnetic and radiometric survey was completed by Precision GeoSurveys over the Idaho Property. The survey revealed a 1000 x 500 m coincident total magnetic intensity high and potassium, uranium and thorium high in the south-west corner of the property.
The potential quantity and grade of mineralization described herein is conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Technical information in this news release has been approved by Grant Hendrickson, P.Geo. and ‘Qualified Person' as defined under Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About the Company
Makara Mining Corp. (CSE:MAKA)(FSE:MK0)(OTC PINK:MAKAF) is a mineral exploration company focused on the acquisition, exploration and development of gold properties. The Company is based in Vancouver, B.C. and holds options over the Rude Creek Property and Idaho Creek Property located in the Yukon and the Kenora Gold Property located in Northwestern Ontario. Additional information about the Company is available at www.makaramining.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Director and Chief Executive Officer
This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, and statements respecting the Company's anticipated exploration program at Rude Creek and the Option at Idaho Creek are "forward-looking statements". Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE: Makara Mining Corp.
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