Gitennes Signs Agreement to Acquire Advanced Stage, High Grade Gold Project in British Columbia and Appoints New Director
VANCOUVER, Feb.16, 2017 /CNW/ - Gitennes Exploration Inc. ("Gitennes" or the "Company") - (TSXV – GIT) announces that it has entered into a Letter Agreement (the " Agreement") with a private company, Omineca Gold Ltd. ("Omineca"), whereby the Company will be granted the exclusive right to acquire an undivided 100% interest in and to Omineca's advanced stage, high grade Snowbird gold project, located near Fort St. James, British Columbia (the "Snowbird Project").
Snowbird Project Highlights
Past exploration activities carried out on the Snowbird Project include:
- 91 diamond drill holes totaling 9,340 meters;
- 164 percussion holes totaling 2,535 meters;
- Extensive soil sampling, geological mapping and geophysics;
- Digitized database incorporating historical work from 1975 onwards; and
- Diamond drilling permits in place.
Selected historical diamond drill results include:
- 23.9 g/t gold over 0.91 meters;
- 18.5 g/t gold over 2.44 meters;
- 48.0 g/t gold over 1.0 meters.
| Readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon. |
Overview of the Snowbird Project
The Snowbird Project consists of eight mineral tenures, comprising an aggregate area of 2,021 hectares, located approximately 20 kilometers west of Fort St. James, British Columbia. The project is accessible year round via paved and dirt roads and sits at a relatively low elevation with moderate relief (not exceeding 190 meters) allowing access to all parts of the property and enabling cost effective diamond drilling programmes.
Mineralization
The Snowbird Project hosts structurally controlled orogenic gold mineralization. Gold occurs in veins and stringer zones localized within the northwest-trending Sowchea Fault Zone and associated subsidiary structures. Better developed quartz-carbonate veins and stringer zones, and higher gold grades, occur at the hangingwall and footwall contacts of the host shear zone. Rare coarse gold and massive stibnite is associated with cross-cutting north-south faults, which have not been adequately tested by prior drill orientations. Gold mineralization also occurs in a poorly explored, narrow elongate body of sericite-muscovite altered quartz diorite to tonalite intrusive outcrops east of the Sowchea Fault Zone. The major host lithologies on the Snowbird Project are argillite, chert, Alpine-type ultramafics (harzburgite), andesite, granodiorite, diorite and minor limestone.
Drilling in previous campaigns has been carried out over approximately 800 metres of the prospective Sowchea Fault Zone to a vertical depth of 180 metres. Drill hole X 86-7 intersected 1.0 metre of 24.5 g/t gold from 28.04 m to 29.04 metres and hole X 88-13 intersected 1.0 metre of 48.0 g/t from 109.72 m to 110.72 m (Readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon).
The Agreement
Subject to acceptance for filing of the Agreement by the TSX Venture Exchange (the "TSX-V"), the Agreement provides that Gitennes may earn a 100% interest in the Snowbird Project by making share payments to the shareholders of Omineca and incurring certain exploration expenditures as follows:
| Date for Completion |
Number of Common Shares |
Minimum Exploration |
| Upon TSX-V acceptance for filing of the Option Agreement |
6,000,000 |
Nil |
| On or before September 30, 2018 |
2,000,000 |
$500,000 |
| On or before September 30, 2019 |
2,000,000 |
$500,000 |
| On or before September 30, 2020 |
2,000,000 |
$500,000 |
| TOTAL: |
12,000,000 |
$1,500,000 |
Upon making the above share issuances and exploration expenditures, Gitennes will own 100% of the Snowbird Project subject only to a 2% net smelter returns ("NSR") royalty to a maximum of $1,300,000 and reverting to a 1% NSR royalty with no cap thereafter. Any shares issued by the Company in connection with the exercise of the Option will be subject to a hold period in Canada of four months and a day from the date of issuance.
Appointment of Director and Grant of Incentive Stock Options
The Company also announces the appointment of Mr. Jesse Grady to its Board of Directors. Mr. Grady is a professional geologist and is currently Vice President of Exploration for Redstar Gold Corp. Mr. Grady previously held positions as an exploration geologist, project manager, and geological consultant for various exploration companies through feasibility stage projects within Alaska and Nevada. He is a co-founder and President of Intercept Minerals Corp. and was a partner in YKPS Professional Services LLC, which provides exploration services to companies working in Alaska. Mr. Grady holds a BSc and an MSc in Geology from the University of Nevada, Las Vegas, and is a member of the American Institute of Professional Geologists.
Pursuant to the Company's stock option plan, the Company intends to grant 1,500,000 incentive stock options to its directors and officers. Each option is exercisable at $0.05 per share and has a term of five years.
About Gitennes Exploration Inc.
Gitennes is in the business of exploring for mineral deposits. Gitennes acquires properties directly by staking, through option agreements with prospectors or other exploration companies, and through reconnaissance programmes.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by L. Mireku, MSc (P.Geo.), who is a "qualified person" within the meaning of National Instrument 43-101.
For further information on the Company, readers are referred to the Company's website at www.gitennes.com and its Canadian regulatory filings on SEDAR at www.sedar.com.
On behalf of the Board of Directors of
Gitennes Exploration Inc.
"Ken Booth"
Ken Booth
President
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 news release.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain statements that constitute "forward-looking information" within the meaning of applicable Canadian securities laws concerning the business, operations and financial performance and condition of the Company. All statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations and orientations regarding the future. Often, but not always, forward-looking statements can be identified by words such as "pro forma", "plans", "expects", "may", "should", "budget", "schedules", 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. Such forward-looking statements include, among others, statements as to the anticipated business plans and timing of future activities of the Company, including the exercise of the Option to acquire the Snowbird Project and to conduct exploration activities thereon. Actual results could differ from those projected in any forward-looking statements due to numerous factors including risks and uncertainties relating to exploration and development and actual results of exploration activities; the ability of the Company to obtain additional financing; delays in obtaining governmental and regulatory approvals (including of the TSX-V), permits or financing; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in the prices of commodities and precious metals; operating hazards and risks; environmental issues and liabilities; and competition and other risks and uncertainties of the mining industry. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that those beliefs, plans, expectations or intentions will prove to be accurate. Readers should consider all of the information set forth herein and should review the Company's periodic reports filed from time-to-time with Canadian securities regulators. These reports and the Company's filings are available at www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as otherwise required by law, the Company undertakes no obligation to update the forward-looking statements contained herein, or to update the reasons why actual results could differ from those projected in these forward-looking statements.
SOURCE Gitennes Exploration Inc.
Ken Booth, Phone: 604-682-7970, Email: [email protected]
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