Gold Stock News - Emperor Metals (CSE: AUOZ) Options Duquesne West Gold Project
Vancouver, British Columbia - October 12, 2022 (Newsfile Corp.) (Investorideas.com Newswire) Emperor Metals Inc. (CSE: AUOZ) ("Emperor") and Globex Mining Enterprises Inc. ("Globex") are pleased to announce the signing of an option agreement (the "Option Agreement") dated October 7, 2022, pursuant to which Emperor has agreed to acquire a one hundred percent (100%) interest in the Duquesne West mineral claim package. The claim package consists of a total of 38 claims covering approximately 1,389 ha. located in the Duparquet Township of Quebec (the "Property") from Globex's subsidiary, Duparquet Assets Ltd. ("Duparquet"). The transaction is subject to the approval of the Canadian Stock Exchange (the "Exchange"). Emperor must also complete a private placement of not less than $1,500,000 within 150 days of Exchange approval of the transaction (the "Financing").
CEO Alex Horsley commented, "With Duquesne West, Emperor has an exceptional opportunity to acquire a 100% interest in a high-grade gold deposit located along one of the most prolific gold mining trends in the world. With existing data, our technical team mapped the known deposit with advanced industry tools using Artificial Intelligence and Machine Learning to identify several resource expansion targets that we plan to drill in 2023. A relatively low-cost first-year program will enable us to further evaluate the Property and the Duparquet Township of Quebec, renowned for its support of mineral exploration and mining, including from First Nations, existing infrastructure, unparalleled tax incentives, and vast mineral endowment."
The Duquesne West Gold Project
The Duquesne West Gold Property (Figure 1) is located 32 km northwest of the city of Rouyn-Noranda and 10 km east of the town of Duparquet. The property lies within the historic Duparquet gold mining camp in the southern portion of the Abitibi Greenstone Belt in the Superior Province.
The Porcupine Destor Fault Zone (PDFZ) cuts through the property and is well known for its link to gold mineralization. The east-west trending PDFZ is spatially associated with many high-grade gold deposits in the Abitibi Region with total historical gold production exceeding 110 million ounces.1 Adjacent to the property is First Mining's Durparquet, Pitt and Duquesne Gold Project, which has a current CIM (2014, 2019) mineral resource estimate of 3.43 Moz measured and indicated and 1.64 Moz inferred.2
Mineralization on the Duquesne West property consists of gold in quartz/quartz-carbonate veins and alteration zones in porphyritic, mafic volcanic, and ultramafic rocks. The Property hosts a historical inferred mineral resource estimate of 727,000 ounces of gold at a grade of 5.42 g/t Au.3 The 2011 technical report is not a current report, and in result, no reliance should be made, nor should the mineral resources be considered, as an estimate of current mineral resources.
Emperor understands that the 2011 Duquesne West historical mineral resource estimate was constructed using a polygonal cross-section model with a minimum cutoff of 3.0 g/t Au and a minimum horizontal width of 2.5 m. Samples within the mineralized wireframes were composited at 1 m and capped at 30 g/t Au. The resource targeted potential underground mineable mineralization and was classified as entirely inferred. The historical resource was comprised of eight mineralized zones over an intermittent strike length of 2.5 km. The Duquesne West historical resource utilized a gold price US$960 per ounce and was based upon CIM standards of 2005. Given the source of the technical report, there is no reason to believe that that the results are not relevant and reliable as an historical estimate. However, the historical estimate will need to be verified by further exploration, confirmation drilling, and modeling. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and Emperor is not treating the historical estimate as current mineral resources.
Reinterpretation of the existing geological model was created using Artificial Intelligence and Machine Learning. This model shows opportunity for additional discovery by revealing gold trends unknown to previous workers and the potential to expand the resource along significant gold endowed structural zones.
1 First Mining Gold Corp. website - https://firstmininggold.com/assets/quebec-projects/
2 Technical Report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") on the Duparquet Gold Project ("Duparquet" or the "Project") titled "NI 43-101 Technical Report and Mineral Resource Estimate Update for the Duparquet Project, Quebec, Canada," dated October 6, 2022 with an effective date of September 12, 2022.: https://firstmininggold.com/assets/quebec-projects/
3 Watts, Griffis, and McOuat Consulting Geologists and Engineers, Oct 20, 2011, Technical Report and Mineral Resource Estimate Update for the Duquesne-Ottoman Property, Quebec, Canada for XMet Inc.
Emperor can exercise the option with Duparquet in exchange for cash and common share payments as set out in Table 1 below. The amount of common shares of Emperor payable in each installment is predicated on Emperor's volume weighted average trading price per share on the Exchange over a period of twenty (20) trading days before the date of payment (the "VWAP") being in excess of $0.20 per share. Initial payments of $50,000 cash and 1,500,000 shares are non-refundable subject to Exchange approval of the transaction, including Financing. Once approval is received and the financing is completed, Emperor must make a cash payment of $450,000. Emperor must also incur yearly minimum exploration expenditures on the Property as set out in Table 2 below, with the first-year minimum exploration expenditure of $250,000 to be incurred by Oct 31, 2023.
Emperor must complete a current mineral resource estimate on the Property (the "Resource Estimate") by the Fifth Anniversary Date. If the Resource Estimate includes at least 1 Moz Au Eq (one million ounces of gold or gold-equivalent) resources in aggregate in measured, indicated and/or inferred categories () under CIM guidelines, Emperor will issue Duparquet an additional payment of 2,500,000 common shares of Emperor.
On exercise of the Option Agreement, Emperor has also agreed to grant Duparquet a three (3%) percent gross metals royalty on the Property (the "GMR"), payable following the commencement of commercial production. The GMR will be payable in kind for gold and silver and in cash for any other metals recovered from the Property, subject to Duparquet's right to elect to receive any in-kind payments in cash. Emperor will have the right at any time to purchase one third of the GMR (1%) from Duparquet for $1,000,000. Also, Duparquet may transfer the GMR in tranches of not less than 1% at any time, subject to Emperor having a right of first refusal to purchase such tranche or tranches. Beginning two years after the exercise of the Option Agreement, Duparquet will also be entitled to receive advance royalty payments of $100,000 in cash per year from Emperor, with such payments recoupable from royalties payable during the life of the GMR.
The technical content for the Duquesne West Project in this news release has been reviewed and approved by John Florek, M.Sc., P.Geol., Principal of Apical Exploration, Technical Advisor for the Company, and a Qualified Person pursuant to CIM guidelines.
About Emperor Metals Inc.
Emperor Metals Inc. is an innovative Canadian mineral exploration company focused on developing high-quality gold properties situated in the Canadian Shield. For more information, please refer to SEDAR (www.sedar.com), under the Company's profile.
ON BEHALF OF THE BOARD OF DIRECTORS
s/ "Alexander Horsley"
Chief Executive Officer and Director
For further information, please contact:
Mr. Alexander Horsley
THE CANADIAN SECURITIES EXCHANGE HAS NOT APPROVED NOR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE
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CERTAIN STATEMENTS MADE AND INFORMATION CONTAINED HEREIN MAY CONSTITUTE "FORWARD-LOOKING INFORMATION" AND "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF APPLICABLE CANADIAN AND UNITED STATES SECURITIES LEGISLATION. THESE STATEMENTS AND INFORMATION ARE BASED ON FACTS CURRENTLY AVAILABLE TO THE COMPANY AND THERE IS NO ASSURANCE THAT ACTUAL RESULTS WILL MEET MANAGEMENT'S EXPECTATIONS. FORWARD-LOOKING STATEMENTS AND INFORMATION MAY BE IDENTIFIED BY SUCH TERMS AS "ANTICIPATES", "BELIEVES", "TARGETS", "ESTIMATES", "PLANS", "EXPECTS", "MAY", "WILL", "COULD" OR "WOULD".
FORWARD-LOOKING STATEMENTS AND INFORMATION CONTAINED HEREIN ARE BASED ON CERTAIN FACTORS AND ASSUMPTIONS REGARDING, AMONG OTHER THINGS, THE ESTIMATION OF MINERAL RESOURCES AND RESERVES, THE REALIZATION OF RESOURCE AND RESERVE ESTIMATES, METAL PRICES, TAXATION, THE ESTIMATION, TIMING AND AMOUNT OF FUTURE EXPLORATION AND DEVELOPMENT, CAPITAL AND OPERATING COSTS, THE AVAILABILITY OF FINANCING, THE RECEIPT OF REGULATORY APPROVALS, ENVIRONMENTAL RISKS, TITLE DISPUTES AND OTHER MATTERS. WHILE THE COMPANY CONSIDERS ITS ASSUMPTIONS TO BE REASONABLE AS OF THE DATE HEREOF, FORWARD-LOOKING STATEMENTS AND INFORMATION ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON SUCH STATEMENTS AS ACTUAL EVENTS AND RESULTS MAY DIFFER MATERIALLY FROM THOSE DESCRIBED HEREIN. THE COMPANY DOES NOT UNDERTAKE TO UPDATE ANY FORWARD-LOOKING STATEMENTS OR INFORMATION EXCEPT AS MAY BE REQUIRED BY APPLICABLE SECURITIES LAWS.