Stellar AfricaGold Expands into Silver Space Optioning 90% of Imiter Nord Silver Project, Morocco
Terms of the Agreement
Pursuant to the terms of the April 6, 2021 Exploration Option Agreement Stellar has three months to conduct additional technical due diligence on Imiter Nord at which time Stellar will issue Stellar shares equivalent to US$50,000 of value shares to property vendor Hidaya Mining. Thereafter, Stellar may earn up to 90% interest in the Imiter Nord project by incurring 18,000,000 Moroccan dirhams (approximately US$1,981,000) of exploration over a period of three years. All subsequent exploration will be financed by the parties pro-rata according to their shareholding. Hidaya will retain a 2.5% NSR that Stellar can purchase at any time for 5,000,000 dirhams (approximately US$467,625) for each 0.5% tranche. The Exploration Option Agreement is subject to satisfactory technical results during the three-month due diligence period, to TSX-V and Moroccan Ministry of Mines approvals.
The Imiter Nord Project
The Imiter Nord project is comprised of five (5) exploration permits totalling 80 km2. The Imiter Nord permits, which are in the process of being upgraded to exploitation licences and are located immediately contiguous to the North of Managem's Imiter Silver Mine (see figure 1), the largest silver producer in Morocco. The Imiter Nord permit area is easily accessible by paved road and dirt road that cut across all five (5) permits.
Figure 1. Localisation map of the permits
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Hidaya Mining reports a meaningful presence of silver, lead and zinc mineralization within the perimeter of the permits and the current owner recently filed all necessary administrative and technical reports to upgrade the five exploration licenses in exploitation licenses. A regional stream sediment map, prepared by the British Geological Survey and acquired from the Ministry of Mines in Morocco, shows the presence of silver stream sediment anomalies and mineral occurrences similar to Imiter Silver Mine anomalies in the perimeter of the permits N°2339261, 2339402, 2339403 and 2339416 (see figure 2). In particular, the British Geological Survey reports a notable silver/zinc/lead vein in Permit N°2339416, also referred to as Foum El Kouss.
Figure 2. Regional stream sediment map (based on data acquired from the Ministry of Mines in Morocco)
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The adjacent Imiter Silver Mine is owned and operated by the Société Métallurgique d'Imiter (SMI), a subsidiary of Managem. Imiter consists of 4 main deposits within a 7km long corridor striking EW along a major regional sheared structure oriented N700 to N900 and the major fault associate to the deposits being the Imiter fault. This world-class deposit in the Anti-Atlas Mountain of Morocco, is a Neoproterozoic epithermal vein deposit generally associated with a felsic volcanic event and formed within a regional extensional tectonic regime. The silver deposit at Imiter stands out for the quality of its ore and, rather than silver being produced as a by-product, Imiter is among the few mines in the world where silver occurs in its free elemental form. According to the 2019Annual Report published by property owner Société Métallurgique d'Imiter (SMI), the Proven and Probable mineral reserves of Imiter were estimated at 152 million ounces of silver and the Measured and Indicated mineral resources at an additional 192 million ounces of silver* making Imiter by far the largest silver producer in Morocco.
*Stellar cannot confirm that the mineral reserves and resources estimates reported in the SMI 2019 Annual Report were prepared and calculated in a manner compliant with NI43-101 and therefore they should be treated as historical results that have not been verified by a QP as defined under NI-43-101 and should not be relied upon. Additionally, Stellar's Imiter Nord property is an adjoining or adjacent property to SMI's Imiter Silver Mine. Under NI43-101, results, information and mineralization from the adjoining or adjacent Imiter Silver Mine does not necessarily apply to Stellar's Imiter Nord project and readers are cautioned to distinguish between information from the Imiter Silver Mine and that of the Company's Imiter Nord project. There is no certainty that the Company will obtain similar or comparable results from its own property.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian exploration company with offices in Vancouver, BC and Montreal, QC. Stellar President François Lalonde can be contacted at 1.514.994.0654 or by email at firstname.lastname@example.org.
The technical content of this press release has been reviewed and approved by Yassine Belkabir a Qualified Person as defined in NI 43-101.
On Behalf of the Board
François Lalonde President & CEO
This release contains certain "forward-looking information" under applicable Canadian securities laws concerning the Arrangement. Forward-looking information reflects the Company's current internal expectations or beliefs and is based on information currently available to the Company. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Assumptions upon which such forward-looking information is based includes, among others, that the conditions to closing of the Arrangement will be satisfied and that the Arrangement will be completed on the terms set out in the definitive agreement. Many of these assumptions are based on factors and events that are not within the control of the Company, and there is no assurance they will prove to be correct or accurate. Risk factors that could cause actual results to differ materially from those predicted herein include, without limitation: that the remaining conditions to the Arrangement will not be satisfied; that the business prospects and opportunities of the Company will not proceed as anticipated; changes in the global prices for gold or certain other commodities (such as diesel, aluminum and electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and interest rates; mining tax regimes; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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