VANCOUVER, Sept. 30, 2019 /CNW/ - Victory Metals
("TSX-V:VMX") ("Victory" or the "Company") is
pleased to announce the successful completion of its Phase II,
9,745 meter drill program at its Iron Point Vanadium Project in
Nevada. The drill program was
designed to test lateral and depth extensions of vanadium
mineralization defined in the Phase I drilling, as well as to
provide representative material from multiple locations throughtout
the mineralized zones for detailed metallurgical
testing.
Highlights:
- The Phase II infill program comprised 8,070 metres in 42
reverse circulation holes and 1,675 metres in 11 diamond drill
holes.
- Logging of the RC chips and core indicates that the program was
successful in defining significant lateral and depth extensions of
the vanadiferous zones delineated in the Phase I program. Assay
results will be reported as soon as they are received from American
Assay Laboratories in Sparks,
Nevada, and compiled and analysed by the Company.
- The 11 PQ core holes were distributed throughout the entire
drill pattern in order to test overall metallurgical
characteristics as well as any spatial variability in these
characteristics.
Collin Kettell, Chief Executive
Officer, stated: "Phase II drilling at Iron Point began on
May 1st and was completed
on August 27th, on time.
The resulting assays from this program are expected in the coming
weeks and should provide sufficient data to produce a NI 43-101
compliant Measured and Indicated resource estimate which will form
the basis for an economic study."
Overview of Phase II Drilling
Following the results of the Phase I maiden drilling campaign,
Victory worked with Mine Development Associates ("MDA"), in
Sparks, Nevada, to evaluate the
extent of the vanadium mineralization at Iron Point, and to
position holes to support the planned maiden resource estimation
work. With this objective MDA developed a Phase II drill plan. The
drill pattern covers a northwesterly trending zone measuring
1,800m long by 600m wide. Most of the holes were concentrated
within the southern half of the property, where the previous
drilling was widely spaced and had not fully penetrated both
mineralized horizons.
The 2019 drilling program at Iron Point was designed to
accomplish four goals:
- Define the perimeter of mineralization;
- Test gaps within the known mineralization;
- Evaluate vanadium mineralization down-dip in the southeastern
zone; and
- Provide PQ core sampling throughout the entire mineralized zone
for metallurgical testing.
The proposed holes were collared from existing historical drill
roads, with several holes drilled at an angle to minimize surface
disturbance, importantly allowing Victory to complete the program
on its existing Notice with the Bureau of Land Management (BLM).
The Company has been working closely with the Winnemucca District
Office of the BLM to ensure that ongoing drilling complies with the
Notice area.
Financing
Further to the Company's private placement completed on
May 8, 2019, the Company is pleased
to announce a non-brokered follow-on financing of 746,268 common
shares at $0.67, which represents a
49% premium to market, to raise gross proceeds of $500,000 (the "Financing"). The proceeds
will be used for working capital purposes. The Company remains well
financed and will have approximately $3
million in cash upon closing of the Financing after paying
for the Phase II drill program. The Financing is subject to all
necessary regulatory requirements including the approval of the TSX
Venture Exchange. All securities issued pursuant to the
Financing will be subject to the applicable statutory, exchange and
regulatory hold period of four months and any other required resale
restrictions.
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 35% of the
Company's issued and outstanding shares are subject to an escrow
release over the next two and a half years.
Qualified Person
The scientific and technical information in this news release
has been reviewed 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
