VANCOUVER, May 17, 2019 /CNW/ - Victory Metals
("TSX-V:VMX") ("Victory" or the "Company") is
pleased to announce that the Company has entered into an option
agreement (the "Agreement") with Ethos Gold
("TSX-V:ECC") ("Ethos"), whereby Ethos can spend
$5M to earn an undivided 50% interest
in the precious metals rights at the Iron Point Vanadium Project,
Nevada (the "Property").
High priority, deep gold/silver drill targets have been proposed by
Dr. Quinton Henningh, who will oversee the drilling program at Iron
Point as technical advisor to Ethos.
Highlights:
- Ethos can earn a 50% interest in the precious metals rights in
the 13,300 acre Iron Point property by spending a minimum of
$5 million over three years, with
minimum expenditures of $1 million in
the first year which will include drilling of up to 3 holes
targeting deep, Carlin-style gold targets. Once Ethos has incurred
$5 million, a 50-50 joint venture
will be formed between Ethos and Victory, specific to the precious
metals rights.
- Victory will retain a 100% interest in widespread, near-surface
Vanadium mineralization that has recently been outlined through
drilling by the Company.
- Victory receives special mining treatment in the Agreement,
whereby should precious metals be found near vanadium
mineralization, vanadium mining will be given preference. Victory
is given a veto on any precious metals mining rights that could in
anyway interfere with the development of vanadium deposits outlined
on the Property.
- Iron Point (see Figure 1) is located at the intersection of the
Battle Mountain and Getchell Gold
Trends, and is on trend with several high-grade, world-class gold
mines including Twin Creeks, Getchell/Turquoise Ridge, and
Marigold.
- Recent fossil analysis has established that the Comus formation
at Iron Point previously mapped as Upper Plate is definitively
Lower Plate and correlatable with Roberts Mountain and Popovich
formations, units highly prospective for large Carlin style deposits.
- Since 1994, Dr. Hennigh has run multiple drill campaigns at
Iron Point targeting shallow gold mineralzation and after
considerable review of the geological and geochemical data is
convinced on the potential for locating deeper Carlin style gold target.
Paul Matysek, Executive Chairman
stated: "Iron Point has been the focus of over $20M of historical gold exploration by key
operators including Newmont, Chevron Resources, Santa Fe,
Kennecott, and Newcrest. Anomalous gold has been found in many
places near surface, as well as significant intercepts indictivate
of Carlin style gold
mineralization. An inquiry into Iron Point's gold potential by Dr.
Quinton Henningh just last year sparked the realization of the
presence of vanadium, which culminated in the formation of Victory
Metals. Dr. Henningh's past work at Iron Point and his conviction
on the possible presence of Carlin
style deep gold target is truly exciting. With Ethos willing to
spend $5M to test deep gold targets,
Victory Metals shareholders stand to benefit greatly through the
potential discovery of deep Carlin-style gold mineralizaton while
focusing Victory's financial and technical resources on the
advancement of the near surface vanadium potential.
I would like to reiterate that Victory's primary focus remains
on vanadium, with the earn-in Agreement entered into with Ethos
clearly defining that Victory has preference on all future mining
activities in favor of vanadium."
Craig Roberts, Chairman of Ethos
stated: "We are delighted to have come to an agreement with Victory
to pursue a drill program targeting Carlin style gold mineralization at Iron
Point, and as well to have Dr. Quinton Henningh on board to guide
and oversee this drill program. The substantial work at Iron Point
and new interpretation by Dr. Henningh has defined this new
conceptual Carlin style target and
we are very excited to be moving forward with drilling to test this
model. We anticipate commencing drilling at Iron Point in the very
near future."
Iron Point Carlin Style Gold Target
As illustrated in Figure 2, the Upper Plate Ordovician Vinini
formation overlies the interpreted Silurian/Devonian Roberts
Mountain and Popovich formations, separated by a thrust fault
dipping at a shallow angle to the west. Subsequent north-south
striking normal faulting down-drops the stratigraphy to the east
along the range front. Historic drilling has confirmed a recumbent
Zed fold parallel and to the west of the range front
fault.
This interpretation is based on data from historic drill
campaigns dating back to the 1980's, including by Newcrest Mining,
Santa Fe Pacific Gold and Aur Resources, and on considerable
historic mapping, sampling and analytical work. Recent
improvements in the understanding of the geology and controls of
Carlin style deposits has also
contributed significantly to the current geologic interpretation
and target definition.
A similar model including recumbent Zed folding along a range
front fault is the focus of mineralization at Newmont's Twin Creeks
mine, located approximately 30 miles north of Iron Point. At Iron
Point, anomalous gold has been encountered along the range front
fault over a strike length of about 5 km. The area also has
associated pathfinder minerals such as mercury, arsenic, and
antimony, which often are a distal indicator of gold mineralizing
systems, and significant gold has also been sampled in surface
trenches, interpreted to be leakage from deeper levels. While
there is considerable historic drilling at Iron Point, very few of
these holes penetrated the currently projected Lower Plate target
envelope.
Based on this interpretation Dr. Hennigh has located three
initial holes which would be drilled vertically to target depths of
between 500 and 800 meters (as shown on Figure 2 above).
These holes are planned to penetrate through upper plate
stratigraphy to the west of the north south striking normal range
front fault and into lower plate stratigraphy.
Earn-in and Joint Venture Terms
Ethos can earn a 50% interest in the gold and silver rights at
Iron Point by spending a minimum of $5
million over three years, with minimum expenditures of
$1.0 million in the first year,
$1.5 Million in year two and
$2.5 Million in year 3. Following the
earn-in, a 50-50 joint venture will be formed between Ethos and
Victory. Victory will maintain 100% title to the Iron Point
claims and on completion of its earn-in Ethos would have a
contractual right to 50% of any precious metal discovery. The
vanadium mineralization is near surface with significant spatial
separation from the conceptual deeper precious metals targets.
Victory maintains the right to ensure that any precious metals
exploration and development plans do not interfere with development
of its vanadium project.
Dr. Quinton Hennigh
Dr. Quinton Hennigh began his
career as an economic geologist with large mining companies
including Newmont Mining Corp., Newcrest Mining, and Homestake
Mining where for fifteen years, he managed exploration projects in
North America, Europe, Australia, Asia, and South
America. In 2007, he joined the junior gold sector where he
has held executive and advisory roles at Gold Canyon Resources,
Novo Resources Corporation, Euromax Resources, Prosperity
Goldfields and Evolving Gold Corp. He earned a Master of Science
degree and a Ph.D in geology and geochemistry from the Colorado School of Mines in 1993 and 1996,
respectively.
About Victory Metals
Victory owns a 100% interest in the Iron Point Vanadium Project,
located 22 miles east of Winnemucca,
Nevada. The project is located within a few miles of
Interstate 80, has high voltage electric power lines running
through the project area and a railroad line passing across the
northern property boundary. The Company is well financed to advance
the project through resource estimation and initial feasibility
study work. Victory has a proven capital markets and mining team
led by Executive Chairman Paul
Matysek. Major shareholders include Casino Gold (46%), and
management, directors and founders (27%). Approximately 48% of the
Company's issued and outstanding shares are subject to an escrow
release over three years
Qualified Person
The scientific and technical information in this news release
has been review and approved by Calvin R.
Herron, P.Geo., who is a Qualified Person as defined by
National Instrument 43-101.
Please see the Company's website at www.victorymetals.ca.
On Behalf of the Board of Directors of
VICTORY METALS INC.
Paul Matysek
Executive Chairman and Director
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 Information
This news release contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation (collectively "forward-looking
statements"). Certain information contained herein constitutes
"forward-looking information" under Canadian securities
legislation. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"expects", "believes", "aims to", "plans to" or "intends to" or
variations of such words and phrases or statements that certain
actions, events or results "will" occur. Forward-looking statements
are based on the opinions and estimates of management as of the
date such statements are made and they are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed by such
forward-looking statements or forward-looking information,
including the business of the Company, the speculative
nature of mineral exploration and development, fluctuating
commodity prices, competitive risks, and delay, inability to
complete a financing or failure to receive regulatory approvals.
Although management of the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements or
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and
forward-looking information. The Company does not undertake to
update any forward-looking statements or forward-looking
information that are incorporated by reference herein, except as
required by applicable securities laws.
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SOURCE Victory Metals Inc
