Gold'n Futures Signs Binding LOI for the Huxter Lane Claims Which Cover a Significant Portion of the Mosquito Hill Gold Deposit Adjacent to Its Brady Gold Project in Newfoundland
Vancouver, September 18, 2023 - Gold\'n Futures Mineral Corp. (CSE: FUTR) (FSE: G6M) (OTC PINK: GFTRF) (the "Company" or "Gold'n Futures") is pleased to announce that it has entered into a binding letter of intent (the "LOI") with an arm's length third party (the "Holder") to acquire a 100% undivided interest in certain mining claims known as the Huxter Lane Claims in the Province of Newfoundland and Labrador (the "Property").
Highlights of the Acquisition:
- The Huxter Lane Claims (the "HL Claims") comprise five mineral licenses containing 52 claims that cover 1,300 hectares ("ha")
- The HL Claims are contiguous with Gold'n Futures' Brady property and more than double the project area held by Gold'n Futures.
- With the addition of the HL Claims, the Company's holdings contain two significant gold zones hosting historical gold resources;
- The Reid gold deposit (see the company's new dated May 25, 2021) and,
- The northeast portion of the Mosquito Hill gold deposit .
- All gold zones remain open to expansion both along strike and to depth.
Gold'n Futures' President and CEO, Stephen Wilkinson commented, "The Huxter Lane Claims are an ideal acquisition for our Company and the timing of the acquisition could not be better. The presence of a large porphyry-style gold deposit within the property makes the asset quite valuable and should only get more valuable as we enter the next bullion rally. When added to our adjoining Brady project and including the new mineral resource estimate pending for the Hercules gold property in Ontario, Gold'n Futures may be well on its way to joining the million-ounce club of emerging gold companies."
The Huxter Lane Claims
The HL Claims are located 50 kilometers ("km") southeast of the town of Gander in central Newfoundland. The property is surrounded by Exploits Discovery Corp.'s Great Bend Project claims (https://exploitsdiscovery.com/great-bend/) and is also approximately 10 km west of the New Found Gold Corp. - Queensway gold property boundary (https://newfoundgold.ca/project/queensway-project/ ).
The Huxter Lane property (Table One) is contiguous with and lies southeast of the Gold'n Futures' Brady gold project that hosts the Reid gold zone. When combined with the licenses of the Brady project, the Company's holdings amount to 7 mineral licenses containing 87 claims covering 2,250 ha. The Company estimates that the HL Claims cover about 2/3 of the surface extent of the historical Mosquito Hill gold deposit.
At the Mosquito Hill deposit, the gold mineralization is associated with 5 to 10% disseminated and stringer pyrite and arsenopyrite, and locally significant quartz veined zones, hosted within an extensive quartz-feldspar porphyry. The deposit displays similarities to the Fort Knox deposit in Alaska, currently being mined by Kinross Gold, and which has been in production since 1997 and currently has reported proven and probable reserves of 1.9 million ounces of gold. Within the HL Claims, the Mosquito Hill gold zones have been outlined over a strike extent of approximately 600 meters and to a vertical depth of 225 meters and remains open both along strike and to depth with significant historical drill intercepts (2006) including from drill hole HX06-16, 2.21 grams per tonne gold ("g/t Au") over 35.0 meters, and 0.67 g/t Au over 103.35 meters.
Golden Dory completed a 15 hole, 2,024 m drill program at the Mosquito Hill mineralization in May, 2009 and a 14 hole, 3,016 m in May-June 2010. Most holes successfully intersected the gold-bearing porphyry over thicknesses ranging up to 98 m. Significant assay results include 38.68 m grading 0.57 g/t Au including 17.05 m grading 0.94 g/t Au from HX-09-33, and 30.80 m grading 0.51 g/t Au including 9.03 m grading 1.00 g/t Au from hole HX- 09-37.
In 2010, Golden Dory commissioned Giroux Consultants Ltd. to complete a resource estimation for the Mosquito Hill prospect. In September of 2010 this estimate was revised based on the 2010 drill data. The Mosquito Hill zone resource was based on 60 drill holes totaling 10,305 m.
The Mosquito Hill Deposit was estimated to contain an indicated resource of 11.18 million tonnes averaging 0.546 grams per tonne gold ("g/t Au") for 196,257 ounces gold, and an inferred resource of 38.76 million tonnes averaging 0.457 g/t Au for 569,496 ounces gold at a cut-off of 0.30 g/t Au. The revised update also reported an initial resource estimate for the Gold'n Futures' nearby Reid gold zone which is located 1,600 m northwest of Mosquito Hill Deposit on the contiguous Brady property. The Reid gold zone estimate reported an inferred resource of 9.57 million tonnes averaging 0.56 g/t Au for 173,000 ounces gold at a cut-off of 0.30 g/t Au.
Cautionary Note: The Company refers to the historical resource estimates associated with the Brady Gold Project and the Mosquito Hill deposit. These historical estimates are based on prior data and reports obtained and prepared by previous operators, and information provided by governmental authorities. A Qualified Person on the behalf of the Company has not done sufficient work to verify the classification of the mineral resource estimates in accordance with current CIM categories. Gold'n Futures is not treating the historical estimates as a current NI 43-101-compliant mineral resource estimate. Accordingly, the historical estimates should not be relied upon. Establishing current mineral resource estimates will require further evaluation, which the Company intends to complete in due course.
Table One: List of the HL Claims by mineral license, number of contained claims, and areas covered.
|Project||License No.||No. Claims||Area |
|License Issuance |
The Agreement Terms
Under the terms of the LOI, the Company shall have the exclusive option (the "Option") for a period of up to 4 years to acquire an undivided 100% ownership interest in the Property by:
- issuing 1,200,000 common shares in the capital of the Company ("Common Shares") and a cash payment equal to $40,000 to the Holder, or its nominee, upon the execution date of a definitive option agreement ("Option Agreement");
- issuing 2,100,000 Common Shares and $50,000 to the Holder, or its nominee, before the first anniversary of the Option Agreement;
- issuing 3,000,000 Common Shares and $60,000 to the Holder, or its nominee, before the second anniversary of the Option Agreement;
- issuing 4,000,000 Common Shares and $70,000 to the Holder, or its nominee, before the third anniversary of the Option Agreement; and,
- issuing 5,000,000 Common Shares and $80,000 to the Holder, or its nominee, before the anniversary of the Option Agreement.
The Company will, on the 7th year following the entering into of the Option Agreement, make an advance royalty payment to the Holder equal to $5,000 (the "AR Payments") on each anniversary of the Option Agreement. Any late payments under the Option Agreement (including for greater certainty the AR Payments) will be subject to an interest rate of 2.0% per month.
Upon exercise of the Option, the Holder will retain 2.0% net smelter royalty on the Property (the "NSR"). The Company may purchase 1.0% of the NSR from the Holder for $2,000,000. The Company will maintain a right of first refusal over the NSR in the event that the Holder elects to sell the NSR following the exercise of the Option. The NSR is more fully provided for in the Option Agreement.
The transaction, including the issuance of Common Shares to the Holder and the execution of a definitive agreement, are subject to satisfactory due diligence by the Company and may be subject to regulatory approvals, as applicable. Any securities issued in connection with the transaction will be subject to applicable statutory hold periods.
The scientific and technical content of this news release has been reviewed and approved by Mr. Walter Hanych, P. Geo., who is a Qualified Person under NI 43-101 regulations and is the Lead Geologist and a director of the Company.
About Gold'n Futures Mineral Corp.
Gold\'n Futures Mineral Corp. (CSE: FUTR) (FSE: G6M) (OTC PINK: GFTRF) is a Canadian based exploration company focused on advancing its Hercules gold project. The Hercules is located 200 km northeast of Thunder Bay, Ont., in the townships of Elmhurst and Rickaby, within the Thunder Bay North Mining District. The Project is in the heart of the Beardmore - Geraldton gold mining camp, the 4th largest gold camp in Ontario and is 40 km west of the Equinox Gold's Greenstone gold mine which reportedly hosts 6.9 million ounces in its Measured and Indicated Resources (https://www.equinoxgold.com/growth-projects/greenstone-project/ ). The Property comprises 475 contiguous claim cells (10,052 ha). From the historical work completed on the property, the Company has built an extensive database including reconnaissance grab samples; channel samples; a variety of geophysical surveys; and a drill hole database that includes historical and current drilling totalling in the order of 547 holes and 114 kilometers of available drill core.
For more information, please visit our website at: www.goldnfuturesmineralcorp.com
On behalf of the Board of Directors
For further information
President and CEO
This news release includes certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the trading of the Company's common shares on the Canadian Securities Exchange, future capital expenditures, anticipated content, commencement, and cost of exploration programs in respect of the Company's projects and mineral properties, anticipated exploration program results from exploration activities, resources and/or reserves on the Company's projects and mineral properties, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "will", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that market fundamentals will result in sustained precious and base metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future exploration of the Company's properties, that the COVID-19 global pandemic will not affect the ability of the Company to conduct the exploration program on the Hercules Gold Project, the availability of financing on suitable terms, and the Company's ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, statements as to the anticipated business plans and timing of future activities of the Company, including the Company's option to acquire the Hercules Gold Project, the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, delays in obtaining governmental and regulatory approvals (including of the Canadian Securities Exchange), permits or financing, changes in laws, regulations and policies affecting mining operations, risks relating to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on the Company's business, financial condition and results of operations, the Company's limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release except as otherwise required by law.
Mineral Resources which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by metal prices and exchange rate assumptions; changes in local interpretations of mineralization geometry and continuity; changes to grade capping, density and domain assignments; changes to geotechnical, mining and metallurgical recovery assumptions; ability to maintain environmental and other regulatory permits; and ability to maintain the social license to operate. The estimate of Mineral Resources may be materially affected by environmental permitting, legal title, taxation, socio-political, marketing, or other relevant issues. Mineral Resources are classified according to Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards (2014) and CIM Best Practices (2019). The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and cannot be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/180970