VANCOUVER, June 18, 2019 /CNW/ - Victory Metals
("TSX-V:VMX") ("Victory" or the "Company") is
pleased to announce that its joint venture partner, Ethos Gold
("TSX-V:ECC") ("Ethos"), has commenced drilling at
the Iron Point project 22 miles east of Winnemucca, Nevada. Ethos' primary target is
Carlin-type gold mineralization
hosted in Lower Plate stratigraphy below the Roberts Mountain
thrust fault. Some of the world's largest and highest grade gold
deposits are found in this Lower Plate stratigraphy. The Lower
Plate drill target at Iron Point is immediately west of a
north-south striking range front fault at between 500m and 800m depth
(see Figures 1 – 5 below).
Highlights:
- The Ethos gold-focused drilling at Iron Point is now underway,
supervised by Dr. Quinton Henningh. This drilling is in addition to
the ongoing vanadium shallow drill program (up to approximately
200m depth) being conducted by
Victory as was announced on May 27,
2019 (click here). Between both the vanadium and gold
programs there are now three RC rigs and one core rig turning at
Iron Point.
- Iron Point is located at the intersection of the Cortez/Battle
Mountain Gold Trend and the Getchell Gold Trend, and on trend from
several high-grade, world-class gold mines including Twin Creeks,
Getchell/Turquoise Ridge, Lone
Tree-Stonehouse, and Marigold.
- The Ethos drill program will comprise approximately
3,200m of drilling (see collar
locations in Figure 1). This includes a fourth vertical hole that
has been added to the previously announced three-hole program which
will test the extension of the gold target area south of Interstate
80. Three of these holes will be drilled with a reverse circulation
("RC") rig to depths of approximately 300m, then continued with a core rig to total
depths of approximately 850m (Holes
1, 2 and 4 in Figure 2). A fourth hole will be drilled as a core
hole from surface to approximately 600m (Hole 3 in Figure 2).
- Ethos can earn a 50% undivided interest in the gold rights at
Iron Point from Victory by spending C$5.0
million over three years, including a minimum expenditure of
C$1.0 million in the first year.
- Previous drilling at Iron Point by Dr. Quinton Hennigh in the 1990s intersected
anomalous Carlin-type gold
mineralization across Upper and Lower Plate stratigraphy near an
interpreted recumbent fold hinge as well as along a range front
fault. Significant anomalous gold has been sampled in surface
trenches and is interpreted to be leakage from deeper levels in the
system. Further, some of the strongest Carlin-type gold pathfinder element
geochemistry in Nevada is present
at Iron Point.
- Based on this work, a 5 km long, 1 km wide north-south trending
Carlin-style gold target has been identified by Dr. Hennigh at Iron
Point. The current drill program will test for Lower Plate-hosted
gold mineralization beneath Upper Plate Vinini Formation
sedimentary rocks that host Victory' vanadium mineralization.
Collin Kettell, CEO of Victory,
stated: "Iron Point was initially acquired by Casino Gold for
its gold potential with the project representing one of the most
historically active gold exploration targets in Northern Nevada. Coincidentally, dialogue with
Dr. Henningh in middle of 2018 regarding deeper gold targets led to
the recognition of the presence of shallow vanadium mineralization
at Iron Point and the formation of Victory Metals as a North
American vanadium company. We are ecstatic to have the opportunity
to work with Dr. Henningh and test for deeper gold targets at Iron
Point, while keeping Victory's focus squarely on vanadium."
Stated Craig Roberts, P.Eng.,
President & CEO of Ethos: "Our deal with Victory Metals was
announced May 17 and we are very
pleased to have advanced to the point of having drills turning by
June 17. While there is considerable historic exploration work
at Iron Point including multiple drill programs resulting in the
definition of strong indicator element and gold geochemistry over 5
km north-south along the range front fault, to date Iron Point has
not received any significant drilling to deeper levels into Lower
Plate stratigraphy to test for Carlin-type gold mineralization. This
drill campaign will be the first to systematically test for a
deeper Carlin-type target in the
Lower Plate at Iron Point. Fortunately we are able to benefit
from this substantial previous nearer-surface work in
locating and orienting our planned deeper
drilling. Carlin-type targets have potential for significant
size and we are excited to have now initiated this drill
campaign."
Stated Dr. Quinton Hennigh: "We
have a robust drill plan prepared for testing the 5 km long gold
target at Iron Point. The first two vertical holes will test the
central part of the target area by cutting through highly
geochemically anomalous Upper Plate rocks in search of Carlin-style
gold mineralization in Lower Plate rocks beneath. Our third hole
tests for similar mineralization in the northern part of the target
area where an erosional window has cut down into the recumbent
Zed-fold exposing targeted Lower Plate rocks. Our newly added
fourth hole, vertical, is positioned in the southern part of the
target area and will drill through basalt, gravel and Upper Plate
rocks to test the underlying prospective Lower Plate stratigraphy.
I am very happy to have this opportunity to test what is perhaps
one of the best remaining Carlin-style gold targets left in
Nevada."
Extension of Target Area to the South of Interstate
80
Previous mapping, sampling, and drilling along the extension of
the range front fault south of Interstate 80 has identified a
significant gold and pathfinder element anomalism. There has been
no deep drilling in this area to date. The target model here
is similar to, and a continuation of, the target model north of the
highway. Ethos has decided to test this target with a vertical hole
(Hole 4) to a planned depth of 850m
(see location on Figure 2), targeting Lower Plate stratigraphy
beneath Upper Plate rocks. Since this area has already been
permitted and bonded by Victory in preparation for drill testing
the extent of vanadium mineralization in this area, drilling of the
deeper gold target can commence immediately.
Overview of the Iron Point Target
Iron Point is located at the intersection of the prolific
Getchell and Cortez/Battle Mountain Trends:
At Iron Point, Upper Plate Ordovician Vinini Formation overlies
interpreted Lower Plate Silurian-Devonian Roberts Mountain and
Popovich Formations, separated by the Roberts Mountain thrust fault
dipping shallowly to the west (see Figures 2, 3 and 4
below). North-south striking normal faulting subsequent to the
Roberts Mountain thrust activity has down-dropped stratigraphy to
the east forming a range front fault, infilled by alluvium and
gravels to the east. Some of the strongest Carlin-type gold pathfinder element
geochemistry in Nevada is present
at Iron Point in footwall rocks immediately west of the range front
fault over an approximately 5 km strike distance (see Figure 5
below). Anomalous gold mineralization in geochemical sampling
and trenching coincident with this pathfinder geochemistry is also
present along this 5 km trend. Historic drilling at Iron Point
has encountered multiple intervals of significantly anomalous gold
mineralization in Upper Plate rocks and into Lower Plate
stratigraphy also immediately west of the range front
fault. This includes an interval of Carlin-type gold mineralization along the
range front fault interpreted to be smeared fault gouge transported
from deeper levels.
Drilling that penetrated the upper levels of the Lower Plate
rocks encountered an interpreted recumbent Zed-fold parallel to and
immediately west of the range front fault. This recumbent
Zed-fold is also partially exposed in an erosional window near the
north end of the target area. A similar geologic model
including recumbent Zed-folding along a range front fault is the
focus of extensive gold-mineralization at Newmont's Twin Creeks
mine located approximately 25 miles north of Iron Point. The
primary target for Carlin-type
mineralization at Iron Point is in this Zed-folding of Lower Plate
rocks along the range front fault (see Figures 3 and 4 below).
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 C$5.0
million over three years, with minimum expenditures of
C$1.0 million in the first year.
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 gold or silver discovery. The
vanadium mineralization is near surface with significant spatial
separation from the conceptual deeper gold target and is 100% owned
by Victory. Furthermore, Victory maintains the right to ensure that
any gold exploration and development plans do not interfere with
development of its vanadium project.
Stock Option Grant
The Company further announces an aggregate grant of 560,000
stock options to certain directors, officers and consultants of the
Company exercisable at $0.63 expiring
five years from the date of grant, subject to regulatory
approval.
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
