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White Gold Corp. Intersects Broad Zones of Significant Near Surface Gold Mineralization at its Betty Ford Target Including 50m of 3.46 g/t Gold and 48m of 1.17 g/t Gold in Maiden Diamond Drill Program

TORONTO, Nov. 17, 2021 (GLOBE NEWSWIRE) — White Gold Corp. (TSX.V: WGO, OTCQX: WHGOF, FRA: 29W) (the "Company") is pleased to announce results for the…

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TORONTO, Nov. 17, 2021 (GLOBE NEWSWIRE) — White Gold Corp. (TSX.V: WGO, OTCQX: WHGOF, FRA: 29W) (the “Company”) is pleased to announce results for the recently completed maiden diamond drilling program at the Betty Ford target on the Company’s wholly owned Betty property, west-central Yukon, Canada. The Betty property is located proximal to and approximately 40 km east of Newmont Corporation’s Coffee Gold deposit and 15 km northeast of Western Copper and Gold Corporation’s Casino porphyry deposit (Figures 1 & 1a). This work forms part of the Company’s fully funded 2021 exploration program backed by partners Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM) and Kinross Gold Corporation (TSX: K, NYSE: KGC) on its extensive 420,000 hectare land package in the emerging White Gold District, Yukon.

Highlights Include:

  • 6 diamond drill holes totalling 1,364m tested the Betty Ford target along an approximately 500m strike length, with hole lengths ranging from 190 to 278m (Figure 2).
  • 2 of 6 diamond drill holes intersected significant broad zones of near surface gold mineralization across a 100m strike length, including:
    • Hole D003 intersected 50.0m of 3.46 g/t Au from 33.0m including a higher-grade core of 5.25 g/t Au over 19.0m down hole and an upper zone of 1.14 g/t Au over 6.1m from 15.9m (Figures 3 & 3a).
    • Hole D001 intersected 48.0m of 1.17 g/t Au from 19.0m including a higher-grade core of 2.38 g/t Au over 10.0m and an upper zone of 9.03 g/t Au over 1.0m from 6.0m (Figure 4). 
  • Gold mineralization is hosted within a newly identified east-west striking subvertical polylithic breccia unit that is 40m to 60m thick.
  • The soil geochemical anomaly indicates that the shallow zone of gold mineralization remains open along strike to the east and 200m to the west.
  • Drilling encountered 2 styles of mineralization: 1) broad zones (50m) of gold-silver mineralization within the polylithic breccia in holes BETFD21D001 and 003; and 2) narrower zones (1-5m) of silver-zinc-lead mineralization which was intersected in all holes.
  • The Betty property is located on the eastern extension of the Coffee Creek Fault, which hosts Newmont’s Coffee deposit.
  • The 2021 maiden diamond drill program focused on 2 of 5 targets identified on the Betty property, with drill testing of the other targets planned for next year’s program.
  • A detailed review of all available exploration and drilling data is currently in progress to help guide further drill testing.
  • A video overview from management discussing these results in more detail can be found at: https://www.youtube.com/watch?v=QlI-JyiCaJE
  • Results from additional 2021 diamond drilling and other exploration activities will be forthcoming in due course.

Figures accompanying this news release can be found at: https://whitegoldcorp.ca/investors/exploration-highlights/. Assay results are summarized below in Table 1, and drill hole collar details are provided in Table 2.

“We are very excited by the results from our maiden diamond drill program on the Betty Ford target,” stated David D’Onofrio, CEO. “Hole 3 ranks amongst the best holes drilled in the district, including at our flagship Golden Saddle deposit, and has considerably extended the recently discovered broad zone of near surface gold mineralization, while encountering significantly higher-grade gold mineralization and remains open along strike. We look forward to following up on these exciting results and to testing the other prospective targets on the Betty property, located in such close proximity to existing large gold and copper deposits and situated along the same fault structure.”

Shawn Ryan, Co-Founder and Chief Technical Advisor stated, “It’s nice to finally see the Betty Project get its first round of diamond drilling. I staked the project back in 2010 to cover two key intersecting regional structures, namely the Dip Creek fault (NE) and the prospective Coffee Creek fault (EW). Since then, we have conducted a systematic soil program that has outlined a large gold mineralized system. This is the same exploration path that led to the discovery of the Golden Saddle and Coffee deposits. 

Comparing the Betty hole BETFD21D003 gold grade and intensity to the Golden Saddle and Coffee deposits, reminds me of Underworld 2008 drilling on the Golden Saddle, which is now owned by White Gold, where Hole 21 intersected 50m of 3.1 g/t Au with a follow up hole WD09-31 in 2009 returning 104m of 3.39 g/t Au. We also saw similar intensities in the Coffee’s Double-Double zone where they intersected 33.5 m of 5.1 g/t Au. 

This diamond drilling program is a great start to hopefully leading to the Yukon’s next big discovery.”

Table 1. Summary of 2021 Diamond Drilling Gold Assay Results at the Betty Ford Target.

Hole ID From (m) To (m) Length (m)* Au (g/t) Ag (g/t)
BETFD21D001 6.00 7.00 1.00 9.03 3.40
  19.00 67.00 48.00 1.17 2.50
Inc. 23.00 50.00 27.00 1.54 2.98
Inc. 24.00 34.00 10.00 2.38 2.52
BETFD21D002 17.00 20.00 3.00 0.03 33.87
  61.00 62.50 1.50 0.05 47.67
  100.50 101.50 1.00 0.07 25.05
  118.00 118.50 0.50 0.23 159.00
  126.00 127.00 1.00 0.05 121.00
BETFD21D003 15.90 22.00 6.10 1.14 4.25
  33.00 83.00 50.00 3.46 4.93
Inc. 44.00 74.00 30.00 4.47 5.19
Inc. 44.00 63.00 19.00 5.25 4.49
BETFD21D004 32.50 33.50 1.00 0.07 7.40
  65.00 67.00 2.00 0.02 8.30
  105.00 106.70 1.70 0.02 10.40
  113.70 115.35 1.65 0.07 7.60
  124.15 125.00 0.85 0.73 15.60
  164.00 166.00 2.00 0.03 8.00
BETFD21D005 23.60 25.40 1.80 0.12 19.22
  93.65 94.40 0.75 0.03 13.90
BETFD21D006 16.40 19.00 2.60 0.22 36.77
  59.70 65.00 5.30 0.07 57.85
  72.00 73.20 1.20 0.02 35.00
  107.45 110.60 3.15 0.03 14.52
  115.00 119.50 4.50 0.03 13.23
  201.00 203.00 2.00 0.05 23.85

* Note: All drill hole intercepts reported herein are core lengths. Currently there is insufficient data to estimate true thicknesses.

Betty Ford Target

The Betty Ford target is located in the centre of the Betty property and forms an approximately 1 km long east-west trending gold-in-soil anomaly with gold values ranging from trace up to 1,961 ppb Au. Bedrock exposure in this area is extremely limited and existing property-scale geology maps indicate the area is underlain predominately by metasedimentary rocks comprising quartzite and muscovite and/or biotite schists. The Betty property is located on the eastern extension of the Coffee Creek Fault, which hosts Newmont’s Coffee deposit

In 2018 a 6-hole RAB drilling program by the Company tested the central portion of the soil anomaly and 3 holes encountered gold mineralization including 0.94 g/t Au over 24.39m in BETFRDRAB18-001, 1.08 g/t Au over 50.29m in BETFRDRAB18-002, and 0.75 g/t Au over 13.72m in BETFRDRAB18-003. The 2021 diamond drilling results reported here represents the first follow up drilling since the original 2018 discovery.

2021 Diamond Drilling Program

The 2021 diamond drilling program at the Betty Ford target comprised 6 holes totalling 1,364m which tested the target area along an approximately 500m strike length with hole lengths ranging from 190 to 278m. The 4 westernmost holes (BETFD21D001 to 004) were drilled to the south (180°) at dips of -50°, and the 2 easternmost holes (BETFD21D005 & 006) were drilled to the southwest (210°) at a dip of -50°.

Results

Hole BETFD21D001 was drilled to validate BETFRDRAB18-002 which had returned the best gold intercept (1.08 g/t Au over 50.29m) in 2018 RAB drilling. BETFD21D001 confirmed the overall thickness and grade of gold mineralization, returning a narrow high-grade gold intercept directly beneath overburden grading 9.03 g/t Au over 1.0 from 6.0-7.0m, and an underlying main zone that returned 1.17 g/t Au over 48.0m from 19.0-67.0m. The mineralization also contains silver values in the range of 2.50 to 3.40 g/t Ag. Mineralization is hosted within a newly identified east-west striking subvertical polylithic breccia unit that is approximately 40-60m thick which is bounded by metasedimentary rocks (quartzites, and muscovite and biotite schists) to the north and south. The breccia contains angular to sub-rounded fragments of a wide variety of lithologies (metasediments, porphyry, tuff, fuchsitic-altered mafic to ultramafic rocks, quartz vein fragments, etc.) ranging in size from millimetres to decimetres, varies from matrix to clast-supported, and contains minor (trace-2%) disseminated and cubic pyrite in the matrix.

Hole BETFD21D003 was drilled 100m east and along strike from BETFD21D001, and also intersected a broad zone of gold mineralization. An upper zone returned 1.14 g/t Au over 6.1m from 15.9 to 22.0m, and the underlying main zone returned 3.46 g/t Au over 50.0m from 33.0 to 83.0m, which included a higher-grade core that averaged 4.47 g/t Au over 30.0m from 44.0-74.0m including 5.25 g/t Au over 19.0m from 44.0-63.0m. Silver values in the mineralized zones in this hole ranged between 4.25 and 5.19 g/t Ag.

Hole BETFD21D002 was drilled to undercut hole BETFD21D001 by approximately 50m, and BETFD21D004 was drilled to test for a strike extension 100m to the west. Neither hole intersected significant gold mineralization, however a second style of polymetallic mineralization was encountered. These form relatively narrow zones (1-3m) of silver-zinc-lead mineralization with metal values in the range of 7.4 to 159.0 g/t Ag, 385 – 3,660 ppm Zn and 72 – 2,211 ppm Pb.

Holes BETFD21D005 & 006, which drilled further to the east, did not intersect significant gold mineralization but again encountered narrow zones (0.75 – 5.30m) of silver-zinc-lead mineralization. Mineralized zones in these holes averaged in the range of 13.23 – 57.85 g/t Ag, 86 – 3,197 ppm Zn and 452 – 2,780 ppm Pb.

Interpretation & Next Steps

The preliminary interpretation suggests that the main zones of significant gold mineralization encountered in holes BETFD21D001 and 003 are hosted in an upper oxidized and transition (oxide to sulphide) zone, which is underlain by a relatively unmineralized sulphide domain within the polylithic breccia unit. The soil geochemical anomaly indicates that the gold mineralized zone remains open along strike to the east and 200m to the west, possibly confined to shallow depths (50-75m below surface) related to oxidation.

Hole BETFD21D002 which undercut hole BETFD21D001 did not encounter any gold mineralization, despite drilling through a thick section of the host polylithic breccia, possibly drilled below the gold mineralized oxide-transition zones. It also appears possible that holes which tested the zone along strike to the west (BETFD21D004) and east (BETFD21D006) may have also intersected the polylithic breccia unit below the oxide-transition zones, explaining the absence of significant gold mineralization in these holes.

The narrower zones of Ag-Zn-Pb mineralization encountered may represent distal mineralization to a possible porphyry system. Historic RC drilling at the Company’s Mascot target located approximately 6 km east-southeast of the Betty Ford target encountered intrusion-related mineralization with a similar Ag-Zn-Pb association, however gold content is notably higher at Mascot, including 2.62 g/t Au over 41.1m in hole BETR12-022 (see “About the Betty Property” below for more detail).

The structural geological setting of the Betty property is complex, however the Company has made significant progress in developing a better understanding of structural controls related to several different styles of mineralization (see Company news release dated August 11, 2021). Over the coming months the Company’s geologists and consultants will be carrying out a thorough review and detailed interpretation of all existing exploration and drilling data. Follow-up diamond drilling at the Betty Ford target next season will focus on tracing the near-surface extensions of the significant gold zone that has been identified in holes BETFD21D001 and 003. Additional prospective targets on the property, in particular the large Mascot target, will also be tested by diamond drilling.

In addition to the diamond drilling carried out on the Betty Ford target, drilling was also carried out on the Betty White target located approximately 750m to the north. Assay results for the latter drilling are pending and will be announced in due course.

Table 2. Collar Details for 2021 Diamond Drill Holes at the Betty Ford Target.

Hole ID Collar Location (UTM NAD83, Zone 7) Dip Azimuth Length
  Easting (m) Northing (m) Elevation (m) (deg) (deg) (m)
BETFD21D001 624,598 6,963,582 823 -50 180 190.0
BETFD21D002 624,598 6,963,645 816 -50 180 278.0
BETFD21D003 624,695 6,963,621 855 -50 180 200.0
BETFD21D004 624,498 6,963,586 781 -50 180 235.0
BETFD21D005 624,959 6,963,622 904 -50 210 211.0
BETFD21D006 624,830 6,963,712 830 -50 210 250.0
TOTAL 6 holes         1,364.0

About the Betty Property

The Betty property comprises 860 quartz claims which cover an area of 17,127 hectares and is strategically located contiguous to and 15 km northeast of Western Copper and Gold Corporation’s Casino porphyry deposit and 40 km east of Newmont Corporation’s Coffee Gold deposit.

The property hosts several early-stage exploration targets including the Betty Ford, Betty White, Betty Grable, Betty Black and Mascot targets. The property was originally staked in 2010 and since that time has seen intermittent exploration. Early work from 2010 to 2013 was carried out by Ethos Gold Corp. (“Ethos”) which completed soil geochemistry surveys (coarse grid), airborne magnetic and radiometric surveys, the acquisition of high-resolution satellite imagery, trenching and reverse circulation (RC) drilling. The majority of Ethos’s work was focused in the Mascot target area leaving large portions of the property underexplored. More recent work has included mapping and prospecting, infill soil geochemistry sampling, ground geophysical surveys (Induced Polarization-Resistivity, and Magnetics – VLF-EM), LiDAR surveys, GT probe sampling and RAB drilling in 2018. Significant historical RC & RAB drilling results include 2.62 g/t Au over 41.1m in hole BETR12-022, 29.75 g/t Au over 3.1m in BETR12-012 and 2.19 g/t Au over 10.7m in BETR12-014 in Ethos RC drilling at the Mascot target, and 1.08 g/t Au over 50.29m in hole BETFRDRAB18-002 in 2018 RAB drilling by the Company at the Betty Ford target.

The Betty property is underlain primarily by Late Devonian metasedimentary rocks of the Snowcap Assemblage which have been intruded by the Middle Cretaceous Dawson Range granodiorite and diorite in the southern portion of the property. The structural geological setting of the property area is complex with 4 major fault arrays being recognized: 1) WNW-trending Yukon River Shear Zone (YRSZ); 2) E-W trending Coffee Creek fault; 3) NW-trending Big Creek fault; and 4) NE-trending Dip Creek fault. The earliest faults are W to WNW trending, southerly verging thrust faults (later movement is dextral strike slip) including the Coffee Creek Fault and Yukon River Shear Zone, and NW trending oblique second order faults. Later fault systems include the NW-trending Big Creek Fault and the NE-trending Dip Creek Fault. Additional 2nd and 3rd order faults also developed at this time, possibly in the Mid to Late Cretaceous. The most important structures controlling gold mineralization as outlined by soil geochemistry appear to be 2nd and 3rd order NE trending and W trending structures. These areas include the Betty Ford, Betty White, Betty Grable and Mascot zones. More rarely gold mineralization appears to be associated with regional scale structures as is the case with the Betty Black zone on the Coffee Creek Fault. Based on soil geochemistry and structural interpretations, the property is prospective for several styles of mineralization including orogenic gold, intrusion-related gold, and porphyry copper (Au/Mo) mineralization.

QA/QC

Analytical work for the 2021 diamond drilling program was performed by ALS Canada Ltd., an internationally recognized analytical services provider, at its North Vancouver, British Columbia laboratory. Sample preparation was carried out at its Whitehorse, Yukon facility. All diamond drill core samples were prepared using procedure PREP-31H (crush 70% less than 2mm, riffle split off 500g, pulverize split to better than 85% passing 75 microns) and analyzed by method Au-AA23 (30g fire assay with AAS finish) and ME-ICP41 (0.5g, aqua regia digestion and ICP-AES analysis). Samples containing >10 g/t Au were reanalyzed using method Au-GRAV21 (30g Fire Assay with gravimetric finish).

The reported work was completed using industry standard procedures, including a quality assurance/quality control (“QA/QC”) program consisting of the insertion of certified standards, blanks and duplicates into the sample stream.

About White Gold Corp.

The Company owns a portfolio of 21,111 quartz claims across 31 properties covering over 420,000 hectares representing over 40% of the Yukon’s emerging White Gold District. The Company’s flagship White Gold property hosts the Company’s Golden Saddle and Arc deposits which have a combined mineral resource of 1,139,900 ounces Indicated at 2.28 g/t Au and 402,100 ounces Inferred at 1.39 g/t Au(1). Mineralization at the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. The Company’s VG deposit acquired in March 2019 hosts an Inferred Resource of 267,600 ounces of gold at 1.62 g/t Au(2). Regional exploration work has also produced several other new discoveries and prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Newmont Corporation, and Western Copper and Gold Corporation’s Casino project. For more information visit www.whitegoldcorp.ca.

(1) See White Gold Corp. technical report titled “Technical Report for the White Gold Project, Dawson Range, Yukon Canada”, dated July 10, 2020, prepared by Dr. Gilles Arseneau, P.Geo., and Andrew Hamilton, P.Geo., available on SEDAR.
(2) See White Gold Corp. press release dated November 11, 2021 “White Gold Corp. Announces 16% Increase to Inferred Resources at its VG Deposit Located 11 km North of its Flagship Golden Saddle and Arc Deposits, Yukon, Canada”.

Cautionary Note Regarding Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “proposed”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the Company’s properties; future growth potential of the Company, including whether any proposed exploration programs at any of the Company’s properties will be successful; exploration results; and future exploration plans and costs and financing availability.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the White Gold properties; the receipt of all applicable regulatory approvals for the Offering; failure to identify any additional mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company’s properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; ongoing uncertainties relating to the COVID-19 pandemic; and those factors described under the heading “Risks Factors” in the Company’s annual information form dated July 29, 2020 available on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

For Further Information, Please Contact:

Contact Information:
David D’Onofrio
Chief Executive Officer
White Gold Corp.
(647) 930-1880
[email protected]

To Book a Meeting with Management: https://whitegoldcorp.ca/contact/request-information/

Figure 1: https://www.globenewswire.com/NewsRoom/AttachmentNg/809857fc-6cf6-4131-ae37-4a97429f58fe

Figure 1a: https://www.globenewswire.com/NewsRoom/AttachmentNg/e5760cea-7547-4a01-ad1c-d1590e40addb

Figure 2: https://www.globenewswire.com/NewsRoom/AttachmentNg/8807bda2-9cbc-4747-a634-f04dd4a1210f

Figure 3: https://www.globenewswire.com/NewsRoom/AttachmentNg/8a1b2b1c-75ed-4f80-bb17-721d00727870

Figure 3a: https://www.globenewswire.com/NewsRoom/AttachmentNg/81807676-0b30-4076-9743-afc53c6ef47c

Figure 4: https://www.globenewswire.com/NewsRoom/AttachmentNg/0edf3c19-4185-40bb-96b1-dd60c894acaf










agnico eagle mines limited


kinross gold corporation


newmont corporation


western copper and gold corporation


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Today’s News

Candelaria Announces Closing of Final Tranche of Non-Brokered Private Placement

NOT FOR DISSEMINATION, DISTRIBUTION, RELEASE, OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE…

NOT FOR DISSEMINATION, DISTRIBUTION, RELEASE, OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES.

VANCOUVER, British Columbia, Oct. 29, 2021 (GLOBE NEWSWIRE) — Candelaria Mining Corp. (TSX-V: CAND, OTC PINK: CDELF) (the “Company”) is pleased to announce that, further to its press release of September 22, 2021, it has closed its second and final tranche of its non-brokered private placement for a gross proceeds of $511,648 through the issuance of 1,136,997 units of the Company (the “Units”) at a price of $0.45 per Unit (the “Final Offering”). Each Unit will consist of one common share of the Company and one-half of a common share purchase warrant (the “Warrants”), with each full Warrant entitling the holder thereof to acquire one common share of the Company at a price $0.65 for a period of 36 months following the closing of the Offering.

Gross proceeds raised from the Final Offering will be used for general corporate purposes.

Combining with first tranche, which closed on September 22, 2021, the total proceeds raised was $8,441,770, with a total issuance of 18,759,491 Units.

Armando Alexandri (COO) and Mike Struthers (CEO), subscribed for 622,222 Units ($280,000) and 91,111 Units ($41,000), respectively, under the second and final tranche of the Offering (the “Insider Subscriptions”). The Insider Subscriptions constitute “related party transactions” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101 in respect of the Insider Subscriptions.

The Final Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.

The original regulatory deadline for closing of the Final Offering was October 7, 2021, in which the Company had obtained regulatory approval to extend it to October 29, 2021.

The securities offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ON BEHALF OF THE BOARD
Mike Struthers
CEO
+1 604 349 5992

For further information, please contact:

Candelaria Mining Corp.
Investor Relations
+1 604 349 5992 | [email protected]

Cautionary Note Regarding Forward-looking Statements: This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the terms, the use of proceeds and the timing of closing of the Offering. Forward-looking statements are based on the opinions and estimates as at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions or metals prices, unanticipated developments on the Company’s properties, and other risks described in the Company’s public disclosure documents available under the Company’s profile at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.






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Today’s News

Rio2 Arranges Project Financing Of US$125 to US$135 Million to Fully Fund Its Fenix Gold Mine to Production

**NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES** VANCOUVER, British Columbia, July 20, 2021 …

**NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES**

VANCOUVER, British Columbia, July 20, 2021 (GLOBE NEWSWIRE) — Rio2 Limited (“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) is pleased to announce that it has arranged mine construction financing totaling approximately US$125 to US$135 million to finance the construction of a mine (the “Mine”) at its 100%-owned Fenix Gold Project in Chile (the “Mine Financing Package”).

The Mine Financing Package is comprised of the following components:

  • Non-binding term sheet with Wheaton Precious Metals International Ltd. (“WPMI” or “Wheaton”) for a US$50 million Gold Purchase Agreement (“Gold Stream”).
  • BNP Paribas (“BNP”) appointed as mandated lead arranger for a senior project debt facility of US$50-60 million (“Senior Project Debt Facility”).
  • Marketed public offering of common shares of the Company for gross proceeds of approximately C$25 million (approximately US$19.6 million), at a price per share to be determined in the context of the market with a syndicate of underwriters co-led by Scotiabank, CIBC Capital Markets and Raymond James (the “Offering”).
  • Non-Brokered private placement of common shares of the Company to WPMI or an affiliate for proceeds of US$5 million at a price per share equal to, and concurrent with, the Offering (the “Private Placement”).

Alex Black, President, CEO and a director of Rio2 Limited, stated, “Securing this Mine Financing Package is a significant milestone event for Rio2 and a testament to our management team and the strong, long-life, project fundamentals offered by the Fenix Gold Project.”

The Mine Financing Package will allow for Rio2 to commence pre-construction activities at the Fenix Gold Project prior to receiving Environmental Impact Assessment (“EIA”) approval and permits for its planned 20,000 tonnes per day, run of mine, dump leach operations. Since the outset, the primary focus of Rio2 has been to accelerate the Fenix Gold Project to production and the Mine Financing Package will allow the Company to maintain its current schedule for first gold production in Q4, 2022.

“We welcome WPMI and BNP as our partners in the construction and development of the Fenix Gold Mine, in an environmentally and socially responsible manner, to the benefit of all stakeholders. The Fenix Gold Project hosts the largest undeveloped gold heap leach project in the Americas with a large measured and indicated gold resource of 5 million ounces with exciting exploration potential, and is open to further mine optimization opportunities,” said Alex Black. 

“Wheaton is excited to partner with Rio2 in developing the Fenix Gold Project. The strength of the Fenix Gold Project and its long-term potential has been readily evident during our due diligence,” said Randy Smallwood, President and Chief Executive Officer of Wheaton.

WPMI GOLD STREAM

Rio2 has signed a non-binding term sheet to receive total cash consideration of US$50 million pursuant to a Gold Purchase Agreement to be entered into with WPMI, a wholly-owned subsidiary of Wheaton Precious Metals Corp. (TSX: WPM; NYSE: WPM). The proceeds from the Gold Stream will be used to partially finance the Mine construction.

Upon entering into the Gold Stream, WPMI will purchase refined gold equal to 6.0% of the gold production until 90,000 ounces of gold have been delivered and 4.0% of the gold production until 140,000 ounces of gold have been delivered, after which the stream will reduce to 3.5% of the gold production for the life of mine. Under the proposed Gold Stream, WPMI will pay total cash consideration of US$50 million, US$25 million of which is payable upon closing, subject to conditions including the completion of the Offering (as described below), with the remaining US$25 million payable subject to certain conditions, including the receipt of the EIA approval for the Mine. In addition, WPMI will make ongoing payments for gold ounces delivered equal to 18% of the spot gold price until the value of gold delivered less the production payment is equal to the upfront consideration of US$50 million, at which point the production payment will increase to 22% of the spot gold price.

Entering into the Gold Stream remains subject to, among other matters, the final negotiation and completion of definitive documentation, including the Gold Purchase Agreement.

As part of the non-binding term sheet, Wheaton has committed to subscribe for US$5 million of common shares pursuant to a non-brokered private placement subscription agreement at the same price per share as the Offering (as described below).

BNP SENIOR PROJECT DEBT FACILITY

On July 20, 2021, the Company engaged BNP act as the sole and exclusive bookrunner, sole and exclusive lead arranger, and sole and exclusive administrative agent for the Senior Project Debt Facility in the amount of US$50-60 million. Proceeds of the Senior Project Debt Facility will be used to fund the construction and commissioning of the Mine and available by way of cash advances in US dollars, and for potential cost overruns. The Senior Project Debt Facility is expected to have a principal grace period in line with construction and ramp-up period and a tailored amortization profile designed to match projected cash flows from the Mine. The closing of the Senior Project Debt Facility remains subject to a number of customary conditions including the completion of satisfactory due diligence, the receipt of credit approvals and the negotiation of definitive documentation.

FINANCING PROCESS

“We have completed a comprehensive review of numerous financing options and we are very pleased with the outcome of our process. We have arranged financing with two leading financial partners to fully fund the construction costs at Fenix Gold. The Mine Financing Package is transformational for Rio2 as it will provide the resources to execute on our plans for the development of the Mine,” stated Jose Luis Martinez, Rio2’s Executive Vice President and Chief Strategy Officer.

RIO2 EQUITY OFFERING

The Company has filed a preliminary short form prospectus in connection with a marketed public offering of common shares of the Company (“Common Shares”) for aggregate gross proceeds of approximately C$25 million (approximately US$19.6 million), at a price per Common Share determined in the context of the market (the “Offering Price”). The Offering will be conducted through a syndicate of underwriters co-led by Scotiabank, CIBC Capital Markets and Raymond James (collectively, the “Underwriters”).

The pricing of the Offering will be determined in the context of the market at the time of entering into a definitive underwriting agreement between the Company and the Underwriters. The Company has granted the Underwriters an over-allotment option to purchase up to an additional 15% of the Common Shares issued pursuant to the Offering (the “Over-Allotment Option”) on the same terms exercisable in whole or in part, at any time and from time to time, up to 30 days from and including the closing date of the Offering (the “Underwriters’ Option”).

Not less than US$20 million of the net proceeds‎‎ of the Offering plus the proceeds of the Private Placement (the “Combined Proceeds”) will be used to fund development of the ‎Corporation’s Fenix Gold Project and associated mine and camp infrastructure ‎(which, for greater certainty includes development of related infrastructure by Lince S.A., a wholly owned subsidiary of ‎the Corporation). The remaining Combined Proceeds is expected to be used for general working capital purposes.‎ Any proceeds from the exercise of the Over-Allotment Option will be added to the Corporation’s working capital.

The Common Shares are being offered (i) to the public in each of the provinces and territories of Canada, except for Quebec and (ii) in the United States, only to “qualified institutional buyers” (as defined in Rule 144A under the United States Securities Act of 1933, as amended (the “1933 Act”), in a private placement exempt from the registration requirements of the 1933 Act.

The Offering is scheduled to close on or about August 6, 2021 and is subject to customary closing conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the securities ‎regulatory authorities and the TSX Venture Exchange (the “TSXV”). The completion of the Offering is also subject to the completion of the Private Placement (as described below).

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Common Shares in the United States. The Common Shares have not been and will not be registered under the 1933 Act or any state securities laws and may not be offered or sold directly or indirectly in the United States except in transactions exempt from the registration requirements of the 1933 Act and all applicable state securities laws.

The Company has applied to list the Common Shares on the TSXV. A preliminary short form prospectus containing important information related to the Common Shares has been filed with securities regulatory authorities in each of the provinces and territories of Canada, except for Quebec. The preliminary short form prospectus is subject to completion. Copies of the preliminary short form prospectus may be obtained from the Underwriters via email at [email protected] or by request to the Company. A copy of the preliminary short form prospectus can also be obtained under the corporate profile of the Company on SEDAR at www.sedar.com.

RIO2 PRIVATE PLACEMENT

As contemplated by the non-binding term sheet with WPMI, WPMI or an affiliate would purchase on a non-brokered private placement basis Common Shares from treasury for proceeds of the Canadian dollar equivalent of US$5 million (approximately C$6.4 million) at a price per share equal to the price of the Common Shares issued pursuant to the Offering (the “Private Placement”), provided the gross proceeds of the Offering and Private Placement exceed US$20 million. The Company intends to use the proceeds from the Private Placement to fund development of the Company’s Fenix Gold Project‎.

The Private Placement is scheduled to close on or about August 6, 2021 and is subject to customary closing conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSXV. The completion of the Private Placment is also subject to the concurrent completion of the Offering.

ADVISORS

Rio2’s financial advisor is Scotiabank and its legal advisors are McMillan LLP in Canada and Guerrero Olivos in Chile in connection with the Gold Stream and the Senior Project Debt Facility.

TECHNICAL INFORMATION

The scientific and technical content of this news release has been reviewed, approved and verified by Enrique Garay, MSc. P. Geo (AIG Fellow), Senior Vice President Geology of Rio2 Limited, who is a QP under NI 43-101. For additional information regarding the Fenix Gold Project, including key parameters, assumptions and risks associated with its development, see the independent technical report entitled “Updated Pre-Feasibility Study for the Fenix Gold Project, Atacama, III Region, Chile” dated October 15, 2019 with an effective date of August 15, 2019, a copy of which document is available under Rio2’s SEDAR profile at www.sedar.com

ABOUT RIO2 LIMITED

Rio2 is a mining company with a focus on development and mining operations with a team that has proven technical skills as well as a successful capital markets track record. Rio2 is focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy. In addition to the Fenix Gold Project in development in Chile, Rio2 Limited continues to pursue additional strategic acquisitions where it can deploy its operational excellence and responsible mining practices to build a multi-asset, multi-jurisdiction, precious metals company.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively “forward-looking information”) within the meaning of applicable securities laws relating to Rio2’s planned development of its Fenix Gold Project and other aspects of Rio2’s anticipated future operations and plans. In addition, without limiting the generality of the foregoing, this news release contains forward-looking information pertaining to the following: the Gold Stream, the Senior Project Debt Facility, the Offering, the Private Placement, the timing and completion of each of the foregoing financings, the use of proceeds of each of the foregoing financings, the estimated mineral resources of the Fenix Gold Project, the potential development of a mine at the Fenix Gold Project, the timing of construction at the Fenix Gold Project, the expected timeline for the commencement of gold production from the Fenix Gold Project, the expected rate of production at the Fenix Gold Project and other matters ancillary or incidental to the foregoing.

All statements included herein, other than statements of historical fact, may be forward-looking information and such information involves various risks and uncertainties. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, and similar expressions. The forward-looking information is based on certain key expectations and assumptions made by Rio2’s management which may prove to be incorrect, including but not limited to: expectations concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; legislative and regulatory environment of Chile; future production rates and estimates of capital and operating costs; estimates of reserves and resources; anticipated timing and results of capital expenditures; the sufficiency of capital expenditures in carrying out planned activities; performance; the availability and cost of financing, labor and services; and Rio2’s ability to access capital on satisfactory terms.

Rio2 believes the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements in this news release should not be unduly relied upon. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Rio2’s disclosure documents on the SEDAR website at www.sedar.com. These risks and uncertainties include, but are not limited to: risks and uncertainties relating to the completion of the financings as described herein, and management’s ability to anticipate and manage the factors and risks referred to herein. Forward-looking statements included in this news release are made as of the date of this news release and such information should not be relied upon as representing its views as of any date subsequent to the date of this news release. Rio2 has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. Rio2 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Notes:

To learn more about Rio2 Limited, please visit: www.rio2.com or Rio2’s SEDAR profile at www.sedar.com.

ON BEHALF OF THE BOARD OF RIO2 LIMITED

Alex Black
President, CEO & Director
Email: [email protected]
Tel: 1 (604) 260-2696

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.

 






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Ranchero Gold Provides Update on Santa Daniela Drill Program

Current drill program focused on expansion of known gold mineralization at Maíz Azul and initial testing of two highly prospective targets.Diamond core…

  • Current drill program focused on expansion of known gold mineralization at Maíz Azul and initial testing of two highly prospective targets.
  • Diamond core drilling commenced on October 27, 2021.
  • To date 360 meters have been completed in two drill holes.
  • A 13 hole, 3000-meter program Phase 1 drill program planned.

VANCOUVER, British Columbia, Nov. 03, 2021 (GLOBE NEWSWIRE) — Ranchero Gold Corp. (formerly, Melior Resources Inc.) (TSXV:RNCH) (the “Company”) is pleased to provide an update of its current drill program at its 100%-owned Santa Daniela project located in Sonora, Mexico. The Santa Daniela project consists of a large 22,000-hectare concession that located in the heart of the Sierra Madre Occidental (SMO) gold belt situated in close proximity to a number of currently operating gold mines.

Diamond drilling is underway. The drill rig arrived on site on October 25 and commenced drilling on October 27. To date, 360 meters of diamond core drilling has been completed in two drill holes.

The Sierra Madre Occidental Gold Belt

Over the last 20 years, a significant new gold belt has emerged in the SMO. While there has historically been small-scale gold production, it is only in the past 15 years that large-scale mining has begun. The region is dominated by Alamos Gold’s Mulatos mining complex and Agnico Eagle’s La India and Pinos Altos mining complexes. These three mines produced approximately 390,000 ounces gold and 2.3 million ounces of silver in 2020. Combined proven and probable gold reserves are 2.5 million ounces. (Source: Alamos Gold and Agnico Eagle Websites) The Santa Daniela concessions are directly adjacent to the Mulatos mine complex (Figure 1).

The SMO is a regionally extensive Tertiary volcanic field, comprised of two distinct volcanic sequences, an older andesitic and dacitic series, and a younger, pyroclastic dominated rhyolitic series. The Upper Series overlies the Lower Series with erosional disconformity and comprises a sequence dominated by stratified volcanic ash beds. Most significant metal occurrences, including Ranchero’s prospects in the SMO, are hosted by rocks of the Lower Series.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8c514bce-53e8-46ea-9ac9-3386582bec34

The Maíz Azul Prospect

The most advanced project in the Santa Daniela concessions is the Maíz Azul prospect. It lies approximately 3.5 km southeast of Alamos Gold’s San Carlos and El Victor deposits – part of the Mulatos gold complex. It is contained within the Lower Series volcanic rocks which also host gold mineralization at Mulatos. Historic drilling encountered gold mineralization in multiple drill holes including 37.0 meters averaging 1.56 g Au/t (DDH MA-18-03).

Field work conducted by Ranchero in 2020 consisted of mapping, geochemical sampling and alteration studies. As a result, Ranchero geologists have identified three primary targets for drill testing known as La Colmena, La Cascada and X-Structure. These targets have been defined by three principal factors: (i) structural trends (veins/veinlets, faults); (ii) geochemical sampling and (iii) alteration mapping. These factors appear to define a classic low-sulfidation, epithermal, precious-metal system.

The primary structural trend is west-northwest and the three targets, parallel to each other, follow this orientation (Figure 2). A secondary northeast trend is also prominent and may have an important control on mineralization.

Geochemical sampling has encountered numerous samples containing gold at surface (particularly the La Colmena and La Cascada targets).  Independent samples of outcrop exposures of the La Colmena zone returned values between 0.22 to 6.27 g Au/t.

Alteration mapping (Figure 3) with the aid of spectral analysis shows concentric halos typical of a low-sulphidation gold deposit. This is characterized by an inner core of silica/clay surrounded by a halo of propylitic alteration (chlorite-epidote-calcite). Outlying this alteration are remnants of argillic alteration characterized by the presence of illite/smectite clays and destruction of rock textures.

The current drill program is planned to test the three targets. Thirteen diamond drill holes will be completed as shown in Figure 2. The program is designed first, to confirm and expand upon the historical drilling at La Colmena. The program will also provide an initial test of the La Cascada zone which has the largest surface expression of the three targets. Finally, one drill hole will provide an initial test of the X Structure.

The Maíz Azul prospect covers just a small portion of the Company’s 22,000-hectare concession block. Reconnaissance efforts have yielded additional targets for further field investigations.

Corporate Update

Ranchero announces that it has engaged the Independent Trading Group (“ITG”) to provide market-making services. ITG is a member of IIROC, CIPF, the Toronto Stock Exchange and Canadian Securities Exchange, and is based out of Toronto, Ontario.

Ranchero entered a market making services agreement with ITG pursuant to which Ranchero engaged ITG to provide market-making services with the objective of maintaining a reasonable market and improving the liquidity of Ranchero’s common shares. Ranchero retained ITG for an initial term of three months, with automatic renewal of one-month terms thereafter until terminated by either party with 30 days’ notice. In consideration for the services, Ranchero will pay ITG C$10,000 per month, plus applicable taxes, during the term of the agreement. ITG will not receive any securities of Ranchero as compensation.

ITG is an arm’s length party to Ranchero. ITG does not currently have any interest in Ranchero or the securities of Ranchero, but ITG may acquire securities of Ranchero in connection with the market-making services. The funds to be used for the market-making services will be provided by

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/1686eeae-e6bc-4644-b9fa-1ce924d62c82

https://www.globenewswire.com/NewsRoom/AttachmentNg/0f0bc3c9-2355-4f20-b4ed-45e0d9bb728f

ITG in accordance with the policies of the TSX Venture Exchange (“TSXV”) and applicable securities laws. The engagement of ITG is subject to the approval of the TSXV.

Qualified Person

Scientific and technical information in this news release has been reviewed and approved by William Pincus, CPG, who is a “qualified person” as defined by NI 43-101.

About Ranchero Gold

Ranchero Gold is a gold exploration and development company currently focused on its 100%-owned Santa Daniela project located in Sonora, Mexico. The Santa Daniela project consist of a large land package of 22,000 hectares within Mexico’s Sierra Madre Occidental – a newly emerging gold-belt. Maíz Azul is the Company’s most advanced prospect. Drilling is currently on-going.

On behalf of the board of directors of the Company:

William Pincus
President, Chief Executive Officer 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.

Cautionary Note Regarding Forward Looking Statements

This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results “ may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements contained in this news release include, but are not limited to, the final acceptance of the TSXV to the Transaction.

Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements. These risks and uncertainties include but are not limited to: risks related to regulatory approval, including the approval of the TSXV. There can be no assurance that forward-looking statement will prove to be accurate, and actual results and future events could differ materially from those anticipate in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

For further information, please contact:
William Pincus
President, Chief Executive Officer and Director
+1 303 589 3734







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