TORONTO--(BUSINESS WIRE)--Warrior Gold Inc. (TSX-V - WAR) (“Warrior Gold” or the “Company”) is pleased to announce that the Company has entered into an agreement with an arm’s length party to acquire a 100% interest in the “Arnold Property”, a 25-claim land package comprising 538 hectares, located less than six kilometres east of the Company’s Goodfish-Kirana project and contiguous to both Agnico Eagle’s Kirkland Lake Project and New Found Gold’s Lucky Strike Project.
The Arnold Property is located one and a half kilometres to the north and west of Agnico’s Upper Beaver deposit (1.4 Moz gold (8.0 Mt @ 5.43 g/t Au and 0.25% Cu) probable mineral reserves as of December 2020 and NI 43-101 compliant1), which is being explored with a drill program of 36,500 metres in 2021, following 28,000 metres of drilling in 20202. The property is contiguous with New Found Gold’s Lucky Strike Project on the eastern boundary and borders the past producing Victoria Creek Mine site (historical inferred mineral resource of 134,000 oz gold, (0.82 Mt @ 5.10 g/t Au (2.5 g/t cut-off))3) on the southwest side of the claim group. This mineral resource estimation is considered historic, is not compliant with the standards of NI 43-101 and are not to be relied upon as an indication of mineral potential of the Victoria Creek Mine property.
The Arnold Property is hosted in the same rock package as the Upper Beaver deposit, the Blake River mafic volcanics, and is transected by a 5½ km stretch of the Mulven Lake Fault, a deep crustal feature that recent studies by MERC4 (Mineral Exploration Research Centre, a research centre based out of Laurentian University, Sudbury, Ontario) have shown to be potentially as deep as, or a substructure of the Larder Lake Cadillac Break (LLCB). The LLCB is a 250 km long regional structure associated with many of the gold deposits in the Abitibi Gold Belt.
Danièle Spethmann, President and CEO of Warrior Gold, stated, “The acquisition of the Arnold Property increases Warrior Gold’s regional upside potential in the Kirkland Lake Gold Camp with additional known mineralized structures and gold showings. The claims are strategically situated contiguous to Agnico Eagle’s Kirkland Lake Project and the Upper Beaver deposit and are contiguous to New Found Gold’s Lucky Strike Project which hosts historical mine and exploration shafts, numerous high-grade gold showings and occurrences.”
The claims contain an interpreted structural splay off the Victoria Creek Deformation Zone (host to the Upper Beaver deposit) and although these splays are prospective structures, limited exploration has been undertaken on the Mulven Lake Fault on the Arnold Property. The Kirkland Lake Gold Camp is a prolific gold camp that hosts many high-grade deposits which occur both near surface and at depth. Older and new deposits are continuously being discovered and redefined with a combination of fieldwork and new exploration technologies.
Under the terms of the purchase agreement, the Company has agreed to issue 350,000 common shares of Warrior Gold to the vendors. The Vendors will retain a 1.5% Net Smelter Return (NSR) on the property with Warrior Gold having the right to purchase two-thirds of the NSR (or 1%) for $1,000,000. The common shares issued are subject to a four month hold period pursuant to applicable securities laws and subject to TSX Venture Exchange approval.
About Warrior Gold Inc.
Warrior Gold is a TSX Venture Exchange-listed company that owns the Goodfish-Kirana Property located five km from the town of Kirkland Lake, Ontario. The Goodfish-Kirana Property is located in the historic Kirkland Lake Gold Camp, which is situated in the prolific Abitibi Greenstone Belt, recognized as one of the world’s highest grade and productive greenstone belts with over 220 million ounces of gold produced to date.
The Goodfish-Kirana Property is 11.5 km long by roughly three km wide (42.5 km2 - 4,251 ha) and contains three major structural trends: the east-west trending Kirana Deformation Zone; the Kirkland Lake Main Break, and the Victoria Creek Deformation Zone, as well as the northeast trending Goodfish Mineralized Zone which is host to several of the past producing mines from the 1930’s. The Goodfish-Kirana Property contains numerous high-grade and anomalous gold showings, as well as historical pits and underground workings.
The technical information contained in this news release has been approved by Susan Lomas, P.Geo. who is a Qualified Person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.
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.
Forward-Looking Statements: This press release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", “anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking statements are based on certain key expectations and assumptions made by the Company. Although Warrior Gold believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Warrior Gold can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in the Company’s Management Discussion and Analysis of the financial condition and results of operations for the year ended March 31, 2020 and the third quarter ended December 31, 2020, which are available at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Warrior Gold undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
1 Agnico Eagles Mines Ltd., 2020 Annual Information Form, page 61 – reported March 26, 2021
3 Queenston Mining Inc., 2011 Annual Information Form, page 15.