Gold Plus Mining Inc. (Canada: GPMI, US: GPMNF, Europe: 1I3) currently has three mineral properties located in some of Canada’s top mining jurisdictions. These properties are, however, all green-field operations; the new project that GPMI is looking to acquire has (non-NI 43-101 compliant) on-site data with over 40,000 meters of drilling completed on the project.
Continue reading to find out more about the project.
The “Vault” Epithermal Gold Project
The “Vault” project has historic estimates that are non-compliant with NI 43-101. This means that, while their historical data is available, it cannot yet be confirmed and should not be used as a be-all, end-all metric. With that out of the way, let’s look at the historical estimates to get an idea of what this site could hold.
Approximately 43,479 meters of drilling has taken place over 190 holes on the project, last examined in 2001 by one of Canada’s largest former gold companies, Inco Ltd. The project returned drill intercepts of up to 15.11 grams/tonne (g/t) of gold over 2.51m and 20.10g/t of gold over 2.57m (If this sounds like a foreign language to you, use this resource we made to get up to speed).
The historic non-NI 43-101 compliant data from 2001 reports 1.55m tonnes of 2.49g/t gold in the Central Zone and 152,000 tonnes of 14g/t gold in the North Vein for a total of 192,489 ounces of gold. The most critical piece of information here is that there is gold in the ground. If Gold Plus can confirm this data using a Qualified Person (aka an NI 43-101 compliant professional who can check over the work) and continue developing the site, they could be much closer to gold production than formerly thought.
What About the Other Sites?
The “Vault” site would instantly become their most developed project to date and would allow them to get much closer to large-scale gold (and possibly also silver) development. For Gold Plus, this would mean money in the door and, for a junior gold exploration company, there are few things as important as operating capital. The process to go from land claim to gold production site is a long and cash-intensive one.
The other projects, which are still in early stages, would be able to continue whilst the company extends its window of opportunity before subsequent financing is required.
As with any acquisition, the “Vault” project would be considered an investment so that the company can focus on its core business units and, ultimately, the goal is for the “Vault” project to bring in sustained revenues to finance further activities.
Disclaimer: Gold Plus Mining Inc. is a communications client of Edge Investments, and we own shares in the company.
Continue Reading for the Full Press Release
VANCOUVER, British Columbia, Dec. 03, 2020 (GLOBE NEWSWIRE) — GOLD PLUS MINING INC. (“Gold Plus” or the “Company”) (CSE :GPMI) (OTC: GPMNF) (FSE: 1I3) is pleased to announce that it has entered into a letter of intent for an option to acquire 100% of the “Vault” epithermal gold project, consisting of 13 contiguous and 5 fractional mineral claims (1,975 ha), located in southcentral British Columbia.
Historical non-compliant NI 43-101 information about the property:
The Qualified Person (identified below) has not done sufficient work to classify the historical estimate as current mineral resources and the Company is not treating the historical estimate as a current mineral resource. This estimate is a non-verified resource prepared prior to the Company’s interest in the property, and has not demonstrated economic viability and are not to CIM definitions and guidelines.
To date, approximately 43,479 meters of drilling has been completed over 190 holes on the project. The project was owned and explored by Vale Canada Ltd. (formerly Inco Ltd.), under a joint venture with Seven Mile High Resources from 1986 to 1990. The Vault project returned drill intercepts of up to 15.11 g/t Au over 2.51m and 20.10 g/t Au over 2.57m. No silver assays were reported and intercepts are downhole intervals.
The historic non-NI 43-101 compliant resource from 2001 reports, 1.55 million tonnes of 2.49 g/t Au in the Central Zone and 152,000 tonnes of 14 g/t Au in the North Vein for a total resource of 192, 489 ounces of gold (Table 1)
BC Minfile Link: http://minfile.gov.bc.ca/Summary.aspx?minfilno=082ESW173
The Vault Property saw continued exploration and drilling into 2004 when Ecstall Mining Corporation drilled 1,415 meters in nine holes over mineralized zones on the “Main Zone” area and on the “North Vein” area that returned intercepts of up to 11.491 g/t Au over 1m as well as 9.196 g/t Au and 8.423 g/t Au. Mineralization begins at and near surface with 2004 drill intercepts returning up to 6.14 g/t Au over 1.5 meters starting at 26 meters depth and 3.10 g/t Au over 1.5 meters at only 10 meters depth.
CEO Charn Deol states, “We are excited at the prospect of including the Vault project into our portfolio of gold, silver and copper assets and, if acquired, will be our most advanced project to date. We are currently compiling data from previous gold discoveries made on the Vault project by Inco Ltd., formerly one of Canada’s largest gold companies, as well as other companies who have completed significant drilling and exploration on the project.”
About the Vault Property
The Vault Property is classified as a low sulphidation epithermal gold-silver deposit. The occurrence is hosted within the subaerial volcanic setting within the White Lake Basin. The White Lake Basin is the northern extension of the Republic Graben in northern Washington State, USA. More than 4 million ounces of gold were produced from similar low sulphidation gold deposits of the Republic Graben. The former producing Dusty Mac mine (1975-1976) located 10km to the southeast of the Vault Property produced 93,295 tonnes grading 11 g/t Au and 198 g/t Ag and is also classified as a low sulphidation epithermal gold-silver deposit.
The Vault Property is located in southcentral British Columbia about 0.5km north of Okanagan Falls with highway 3A/97 running diagonally through the property.
To date, four elongated, easterly plunging, elongate mineralized zones have been delineated over a strike length of 1500m. The two portions of the main zone are referred to as the “Central” and the “West” areas. Lahar, felsites and sandstones of the Eocene Lower Marama Formation host quartz/chalcedony veins of differing ages that have been fractured and re-cemented numerous times with gold-bearing siliceous material. These veins contain up to 15% disseminated, very fine grained pyrite and/or marcasite.
The above information provides an indication of the exploration potential of the Vault Property and may not be representative of expected results. The QP and the Company has not completed sufficient work to verify the historic information on the properties comprising the Vault Gold Property, particularly regarding historical exploration, neighbouring companies, and government geological work.
The technical information in this press release has been reviewed and approved by Mike Kilbourne P.Geo, a “qualified person” pursuant to NI 43-101.
Terms of the Letter of Intent
The Company and the vendors have agreed that the Company will promptly commission and deliver a Technical Report on the project on or before February 4, 2021 and will further enter into a definitive property option agreement on or before December 18, 2020.
Under the definitive agreement, the Company has the option to acquire 100% of the property (subject to the NSR described below) for the following consideration:
- payment of $200,000 and issuance of $200,000 in common shares on or before February 4, 2021;
- issuance of $100,000 in common shares on or before six months from the date of the definitive agreement;
- payment of $200,000 and issuance of $200,000 in common shares on or before the first anniversary of the definitive agreement,
- payment of $350,000 and issuance of $250,000 in common shares on or before the second anniversary of the definitive agreement, and
- completion of $750,000 on exploration on or before June 30, 2022.
The property is subject to a 2.5% NSR subject to a buy-back of 1% for $1,000,000. The Company has the option to terminate this agreement up to February 4, 2021. There may be a finder’s fee payable subject to regulatory approval.