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Platinum Group Metals Ltd. Reports 2021 Annual Results

Vancouver, British Columbia and Johannesburg, South Africa–(Newsfile Corp. – November 24, 2021) – Platinum Group Metals Ltd. (TSX: PTM) (NYSE: PLG) (NYSE…

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Vancouver, British Columbia and Johannesburg, South Africa–(Newsfile Corp. – November 24, 2021) – Platinum Group Metals Ltd. (TSX: PTM) (NYSE: PLG) (NYSE American: PLG) (“Platinum Group“, “PTM” or the “Company“) reports the Company’s financial results for the year ended August 31, 2021 and provides an update and outlook. The Company is focussed on advancing the palladium dominant Waterberg Project located on the Northern Limb of the Bushveld Complex in South Africa (the “Waterberg Project“). The Waterberg Project is planned as a fully mechanised, shallow, decline access palladium, platinum, gold and rhodium (“4E“) mine and is projected to be one of the largest and lowest cost underground platinum group metals (“PGM” or “PGMs“) mines globally.

The Company’s near-term objectives are to advance the Waterberg Project to a development and construction decision and complete construction funding and concentrate offtake arrangements. The Company is also advancing an initiative through Lion Battery Technologies Inc. (“Lion“) using platinum and palladium in lithium battery technology in collaboration with Anglo American Platinum Limited (“Anglo“) and Florida International University (“FIU“). Lion is focussed on securing further patents for technologies developed through its ongoing research and development.

The Company has filed a Form 20-F annual report (“Form 20-F“), including the Company’s audited consolidated financial statements (the “Financial Statements“), for the year ended August 31, 2021 with the U.S. Securities and Exchange Commission (the “SEC“) on EDGAR (www.sec.gov) and an Annual Information Form (“AIF“) and Management’s Discussion and Analysis with Canadian securities regulators on SEDAR (www.sedar.com). The Form 20-F and AIF are also available on the Company’s website at www.platinumgroupmetals.net. Shareholders may receive a hard copy of the complete Financial Statements from the Company free of charge upon request.

All amounts herein are reported in United States dollars unless otherwise specified. The Company holds cash in Canadian dollars, United States dollars and South African Rand. Changes in exchange rates may create variances in the cash holdings or results reported.

Recent Events

On October 14, 2021, the Company reported completion of a geotechnical drilling campaign at the Waterberg Project. The campaign consisted of 46 boreholes drilled along the planned centerline of two sets of twin declines and box-cut positions. A total of 5,966 metres of drill core were recovered and a total of 2,696 metres of core were geotechnically logged from within the zone of interest. Downhole geophysical surveys were conducted. Core samples of all the major geotechnical units encountered were collected and subjected to laboratory testing. Geotechnical qualified persons monitoring the drill programme have stated that in general, the rock mass encountered along both decline routes is competent and can support the planned excavations with no major problem areas expected.

On July 6, 2021, Waterberg JV Resources Proprietary Limited (“Waterberg JV Co.“) completed the registration of the Waterberg Mining Right at the Minerals and Petroleum Titles Registration Office. The Waterberg Mining Right was notarially executed by the Department of Mineral Resources and Energy (“DMRE“) on April 13, 2021 and remains active.

On June 15, 2021, the U.S. Patent and Trademark Office issued Patent No. US 11,038,160 B2 entitled “Battery Cathodes for Improved Stability” to FIU. The patent covers a preparation method using PGM catalysts in carbon materials for use as cathodes with increased emphasis on Lithium Sulphur Batteries. The patent broadens protection for Patent No. US 10,734,636 B2 issued to FIU on August 4, 2020, covering the composition of carbon cathodes containing PGMs. Under a sponsored research agreement, the Company’s subsidiary Lion has exclusive rights to such battery technology being developed by FIU, including patents granted. Lion was jointly formed in 2019 by Platinum Group and Anglo to accelerate the development of next-generation battery technology using platinum and palladium.

On and following March 5, 2021, three notices of appeal were filed by individual appellants against the January 28, 2021 granting of the Waterberg Mining Right. Counsel acting for one group filed an application for an order in the High Court of South Africa to review and set aside the decision by the Minister of the Department of Forestry, Fisheries, and the Environment to refuse condonation for the late filing of that group’s appeal against the grant of an Environmental Authorization for the Waterberg Mine in November 2020. Waterberg JV Co. has filed formal rebuttals to each action. On July 30, 2021, a group located near planned surface infrastructure filed an urgent interdict application. Waterberg JV Co. promptly filed an answering affidavit denying urgency and arguing that the application is without merit. The applicants did not respond and were obliged to remove their application from the urgent court roll. Host community Ketting has applied to join as an interested party to the application and another host community submitted a confirmatory affidavit, both communities being in support of the Waterberg Mine. A time frame for a hearing of the interdict application is uncertain or may never occur.

On February 5, 2021, the Company entered into an Equity Distribution Agreement with BMO Capital Markets Corp. (“BMO“) to sell its common shares from time to time for up to $50.0 million in aggregate sales proceeds in “at-the-market” transactions (the “2021 ATM“). At August 31, 2021, the Company had sold 2,502,790 common shares at an average price of $4.3754 pursuant to the 2021 ATM for net proceeds of $10.7 million after fees and expenses of $954 thousand, including brokerage fees of $274 thousand. As of November 24, 2021, the Company has issued a total of 4,433,448 common shares at an average price of US$2.63, pursuant to the 2021 ATM for net proceeds of $11.4 million. No offers or sales of common shares were made in Canada, to anyone known to be a resident of Canada or on or through the facilities of the Toronto Stock Exchange (the “TSX“) or other trading markets in Canada.

On January 28, 2021, the DMRE granted Waterberg JV Co. the Waterberg Mining Right.

On December 8, 2020, the Company closed a non-brokered private placement of 1,121,076 common shares at a price of $2.23 per share to existing major beneficial shareholder, Hosken Consolidated Investments Limited (“HCI“) through its subsidiary Deepkloof Limited (“Deepkloof“), resulting in gross proceeds to the Company of $2.5 million and allowing HCI to maintain approximately a 31% interest in the Company as they held prior to the at-the-market offering completed by the Company on November 30, 2020 (the “2020 ATM“), as described below.

On November 30, 2020, the Company completed the 2020 ATM, first announced on September 4, 2020, pursuant to an Equity Distribution Agreement with BMO whereby Platinum Group sold 5,440,186 common shares in the capital of the Company at an average price of $2.21 for gross proceeds of $12.0 million. No offers or sales of common shares were made in Canada, to anyone known to be a resident of Canada or on or through the facilities of the TSX or other trading markets in Canada.

Results For The Year Ended August 31, 2021

During fiscal 2021, the Company continued its efforts to lower costs. During the year ended August 31, 2021, the Company incurred a net loss of $13.1 million (August 31, 2020 – net loss of $7.1 million). The loss in the previous comparable year was lower due to a $3.1 million realized gain on the expiry of warrants in the previous comparable year. Share based compensation was $3.2 million (August 31, 2020 $1.6 million) with the increase due to a higher fair value for options granted during the current year resulting from a higher share price at the grant date. General and administrative expenses during the year were $5.1 million (August 31, 2020 – $3.7 million) with the increase due mostly to a $0.828 million severance payment to the Company’s former CEO pursuant to a formal separation agreement. Interest expense of $5.1 million (August 31, 2020 – $5.5 million) was lower due to the reduction in debt during the current year. The currency translation adjustment recognized in the year is a gain of $4.9 million (August 31, 2020 – $4.5 million loss) due to the Rand increasing in value relative to the U.S. Dollar during the current year.

At August 31, 2021, finance income consisting of interest earned and property rental fees in the year amounted to $0.1 million (August 31, 2020 – $0.2 million). Loss per share for the year amounted to $0.18 as compared to a loss of $0.11 per share for fiscal 2020.

Accounts receivable at August 31, 2021 totalled $0.3 million (August 31, 2020 – $0.2 million) while accounts payable and other liabilities amounted to $2.5 million (August 31, 2020 – $1.4 million). Accounts receivables were comprised mainly of value added taxes repayable to the Company in South Africa. Accounts payable consisted primarily of payables related to geotechnical drilling on the Waterberg Project.

Total expenditures on the Waterberg Project, before partner reimbursements, for the year were approximately $3.7 million (August 31, 2020 – $3.0 million). At year end, $44.0 million in accumulated net costs had been capitalized to the Waterberg Project (August 31, 2020 – $34.9 million). Total expenditures on the property since inception to August 31, 2021 are approximately $77.5 million.

For more information on mineral properties, see Note 4 of the Financial Statements.

Outlook

The Company’s primary business objective is to advance the Waterberg Project to a development and construction decision. The Company and Waterberg JV Co. are in process to design, budget and carry out pre-construction work programmes for the Waterberg Project, including the erection of fences, ground clearing, geotechnical drilling and infrastructure engineering and surveying. The Company continues to work closely with regional and local communities and their leadership on how the mine can be developed to provide optimal outcomes and best value to all stakeholders. The Company continues to work on advancing project permitting, infrastructure servitudes and community relationships with its partners Impala Platinum Holdings Ltd. (“Implats“), Mnombo Wethu Consultants (Pty) Ltd. (“Mnombo“), Japan Oil, Gas and Metals National Corporation (“JOGMEC“) and Hanwa Co. Ltd. (“Hanwa“) through a technical committee of Waterberg JV Co.

The Member of the Executive Committee (“MEC“) for the Limpopo Department of Economic Development, Environment and Tourism, Mr. Thabo Andrew Mokone, recently undertook to investigate the appeals and court actions described above. During September 2021, the MEC held regular engagements with representatives of Waterberg JV Co. and the community leaders of Kgatlu village. In late October 2021, a mediation process commenced between the parties with the objective of resolving matters of concern.

The Company and Waterberg JV Co. have begun a process to assess commercial alternatives for mine development, financing and concentrate offtake. Several parties are currently in discussions with the Company. Implats’ offtake right of first refusal allows Implats the opportunity to match any offtake terms offered by a bona fide third party. Discussions with Implats on concentrate offtake also continue. Further, the Company is conducting research and formal studies to assess the economic feasibility of establishing a dedicated Waterberg matte furnace as an alternative to a traditional concentrate offtake arrangement.

The market for PGMs, palladium and rhodium in particular, has generally improved since 2019. In 2021, the impact of a global shortage of semi-conductor chips did result in reduced global automotive production, resulting in a concurrent reduction in demand for PGMs. Prices for each of the PGMs have fallen from their zeniths in approximately February to April of 2021. Auto market recovery to pre-COVID production levels is forecast by some market analysts in 2023/2024.

The Company’s battery technology initiative through Lion with Anglo represents a new opportunity in the high-profile lithium battery research and innovation field. The investment in Lion creates a potential vertical integration with a broader industrial market development strategy to bring new technologies to market which use palladium and platinum. Research and development efforts by FIU on behalf of Lion continue. Technical results from Lion’s research may have application to most lithium-ion battery chemistries and the scope of Lion’s research work is being expanded.

Environmental, Social and Governance

Platinum Group recently submitted its inaugural Environmental, Social and Governance (“ESG“) disclosure submission with Digbee Ltd. (“Digbee“), a United Kingdom based company with a new mining-focused expert network and ESG disclosure platform aimed at providing improved disclosure and better access to capital markets for mining companies involved with strong ESG practices. Digbee has been endorsed by leading financial firms who support the Digbee ESG initiative such as Blackrock, BMO, and Dundee Corporation. Digbee’s reporting framework is aligned with global standards, including the Equator Principles, which provide a framework for financial institutions to assess environmental and social risks in projects. For more details refer to the Company’s Form 20-F and AIF.

Regulatory

The Company also advises that its consolidated Financial Statements for the fiscal year ended August 31, 2021, included in the Company’s Form 20-F, contain an audit report from its independent registered public accounting firm that includes a going concern emphasis of matter. The foregoing statement is required by Section 610(b) of the NYSE American Company Guide.

As well as the discussions within this news release, the reader is encouraged to also see the Company’s disclosure made under the heading “Risk Factors” in the Company’s Form 20-F and AIF.

Qualified Person

Rob van Egmond, P.Geo., a consultant geologist to the Company and a former employee, is an independent qualified person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101“). Mr. van Egmond has reviewed, validated and approved the scientific and technical information contained in this news release and has previously visited the Waterberg Project site.

About Platinum Group Metals Ltd. and the Waterberg Project

Platinum Group Metals Ltd. is the operator of the Waterberg Project, a bulk underground palladium and platinum deposit located in South Africa. The Waterberg Project was discovered by Platinum Group and is being jointly developed with Implats, Mnombo, JOGMEC and Hanwa.

On behalf of the Board of
Platinum Group Metals Ltd.

Frank R. Hallam
President, CEO and Director

For further information contact:
Kris Begic, VP, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
www.platinumgroupmetals.net

Disclosure

The TSX and the NYSE American have not reviewed and do not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

The recent COVID-19 pandemic and related measures taken by government create uncertainty and have had, and may continue to have, an adverse impact on aspects of the Company’s business, including employee health, workforce productivity and availability, travel restrictions, contractor availability, supply availability, the Company’s ability to maintain its controls and procedures regarding financial and disclosure matters and the availability of capital and insurance and the costs thereof, some of which, individually or when aggregated with other impacts, may be material to the Company. Since October 1, 2021, South Africa was moved to a reduced alert level 1, its lowest level of alert. The Delta variant is currently the dominant strain in the country. In response to uncertainty caused by the COVID-19 pandemic, the Company has implemented additional testing and monitoring protocols for its work at the Waterberg Project site and elsewhere in South Africa.

This news release contains forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of U.S. securities laws (collectively “forward-looking statements”). Forward-looking statements are typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may”, “plans”, “postulate” and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements regarding the application for an order of the High Court and appeal of the mining right, the applicable procedures, timeline and potential results thereof, the success of the Company’s rebuttals to the appeals, the pland for and development of the Waterberg Project and the potential benefits and results thereof, financing and mine development of the Waterberg Project including the expectation of no major problem areas following the geotechnical drilling campaign at the Waterberg Project, potential commercial alternatives for mine development financing and concentrate offtake, financing and mine development of the Waterberg Project, Implat’s decision to exercise its right of first refusal with respect to concentrate offtake, the economic feasibility of establishing a dedicated Waterberg matte furnace, the appeals of the Waterberg Mining Right, work with local communities, support from host communities and resolution of concerns through a mediation process, the outcome of the MEC investigation, the availability of construction financing on terms acceptable to the Company, the development of new battery technologies and the potential benefits of utilizing palladium and platinum therein, the commercialization thereof, potential vertical integration with a broader industrial market development strategy, the success of Lion’s application for patent rights with respect to the use of platinum group metals in lithium batteries, providing shareholder value, and Lion’s development of next generation battery technology, a return to strength in the market for PGMs, the success of Lion’s and FIU’s research and development efforts, the expansion of Lion’s research work into additional battery chemistries, the Company’s ability to better access capital markets due to its ESG practices, the outcome of the Company’s pre-construction work programmes at the Waterberg Project, the ability of the Company to obtain all required permitting and infrastructure servitudes, the availability of semi-conductors in 2022 and 2023, the estimated strength of the market for platinum, palladium and rhodium, the recovery of the car sales market, the emergence of hydrogen-based energy technology utilizing PGEs, the use of PGEs in solutions to climate change, and the Company’s other future plans and expectations. Although the Company believes any forward-looking statements in this news release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct.

The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance and that actual results may differ materially from those in forward-looking statements as a result of various factors, including possible adverse impacts due the global outbreak of COVID-19 (as described above), the Company’s inability to generate sufficient cash flow or raise sufficient additional capital to make payment on its indebtedness, and to comply with the terms of such indebtedness; additional financing requirements; the $20 million senior secured facility with the Sprott Private Resource Lending II (Collector), LP (“Sprott”) entered into August 15, 2019 (the “2019 Sprott Facility” of which $3.6 million in principal is outstanding at November 24, 2021) is, and any new indebtedness may be, secured and the Company has pledged its shares of PTM RSA, and PTM RSA has pledged its shares of Waterberg JV Co. to Sprott, under the 2019 Sprott Facility, which potentially could result in the loss of the Company’s interest in PTM RSA and the Waterberg Project in the event of a default under the 2019 Sprott Facility or any new secured indebtedness; the Company’s history of losses and negative cash flow; the Company’s ability to continue as a going concern; the Company’s properties may not be brought into a state of commercial production; uncertainty of estimated production, development plans and cost estimates for the Waterberg Project; discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs, between actual and estimated metallurgical recoveries and between estimated and actual production; fluctuations in the relative values of the U.S. Dollar, the Rand and the Canadian Dollar; volatility in metals prices; the uncertainty of alternative funding sources for Waterberg JV Co.; the Company may become subject to the U.S. Investment Company Act; the failure of the Company or the other shareholders to fund their pro rata share of funding obligations for the Waterberg Project; any disputes or disagreements with the other shareholders of Waterberg JV Co. or Mnombo; the ability of the Company to retain its key management employees and skilled and experienced personnel; conflicts of interest; litigation or other administrative proceedings brought against the Company; actual or alleged breaches of governance processes or instances of fraud, bribery or corruption; exploration, development and mining risks and the inherently dangerous nature of the mining industry, and the risk of inadequate insurance or inability to obtain insurance to cover these risks and other risks and uncertainties; property and mineral title risks including defective title to mineral claims or property; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada and South Africa; equipment shortages and the ability of the Company to acquire necessary access rights and infrastructure for its mineral properties; environmental regulations and the ability to obtain and maintain necessary permits, including environmental authorizations and water use licences; extreme competition in the mineral exploration industry; delays in obtaining, or a failure to obtain, permits necessary for current or future operations or failures to comply with the terms of such permits; risks of doing business in South Africa, including but not limited to, labour, economic and political instability and potential changes to and failures to comply with legislation; the Company’s common shares may be delisted from the NYSE American or the TSX if it cannot maintain compliance with the applicable listing requirements; and other risk factors described in the Company’s most recent Form 20-F annual report, annual information form and other filings with the SEC and Canadian securities regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively. Proposed changes in the mineral law in South Africa if implemented as proposed would have a material adverse effect on the Company’s business and potential interest in projects. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

The technical and scientific information contained herein has been prepared in accordance with NI 43-101, which differs from the standards adopted by the SEC. Accordingly, the technical and scientific information contained herein, including any estimates of mineral reserves and mineral resources, may not be comparable to similar information disclosed by U.S. companies subject to the disclosure requirements of the SEC.

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Author: Author

Today’s News

Granada Gold Intersects 5.5 g/t Au Over 6 Meters Including 31.3 g/t Au Over 1 Meter During Infill Drilling

These new intercepts verify the continuity of mineralization at shallow depth and confirm extension of the multiple mineralized structures

 

Rouyn…

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These new intercepts verify the continuity of mineralization at shallow depth and confirm extension of the multiple mineralized structures

 

Rouyn Noranda, Q.C. – TheNewswire – December 6, 2021 – Granada Gold Mine Inc. (TSXV:GGM) (OTC:GBBFF) (Frankfurt:B6D) (the “Company” or “Granada”) is pleased to announce additional results from its on-going drill program at its Granada Gold project with multiple new gold assays from its GR-21-22, GR-21-23, GR-21-24 and GR-21-25 drill holes with grades up to 31.30 g/t over 1.00m, 11.70 g/t over 1.00m, and 10.05 g/t over 0.50m.

Drilling Highlights

  • Drill holes GR-21-22, GR-21-23, GR-21-24 and GR-21-25 were designed to confirm the presence of gold mineralization at shallow depth.  

  • The drill holes were aimed to fill gaps in the SGS mineral resources envelopes, with the potential of increasing the tonnage of the high-grade, open-pit resource grade of 2 grams per tonne gold. 

  • GR-21-22 intersected  

    • 1.25g/t Au over 7.75m 

  • GR-21-23 intersected 

    • 5.54 g/t Au over 6.00m, including 31.30 g/t Au over 1.00m 

  • GR-21-24 intersected 

    • 0.78g/t Au over 11.70m, including 5.40 g/t Au over 0.60m 

  • GR-21-25 intersected  

    • 1.14 g/t Au over 5.1m, including 10.05 g/t Au over 0.50m 

“The assay results from these drill holes prove the continuity of mineralization along the main Granada central structure. Also, the 30,000-meter drill program we conducted over the past year has confirmed that the average assays of the down-dip results of the mineralized structure are consistently higher than the previous perpendicular-to-structure drill results. The company is planning another bulk sample similar in size as the previous one taken to get a better understanding of the correlation to drill data results. We expect the bulk sample results to give a more representative grade of the mineralized vein zone,” commented Frank J. Basa, P.Eng., President and CEO.

 

A 500-tonne bulk sample of mineralized material was taken in the fall of 2020 (Press Release June 16, 2021) based on drill holes GR-19-A, -B and -C. The processing of this bulk sample is progressing well at Temiskaming Testing Labs, in Ontario, Canada. To date, 400 tonnes have been processed with the remaining 100 tonnes to be processed by the first quarter of 2022. Visible gold has been encountered during processing. The previous sample of 1,220 kilograms returned 55.6 grams per tonne of physical gold (Press Release August 11, 2020). The company is targeting a minimum open-pit resource grade of 2 grams per tonne.

  

Figure 1:  Plan Map Showing Drill Hole Traces and Significant Assay Locations Immediately Northeast of Pit #1.

 


Click Image To View Full Size

 

Table 1: Sample Details

 

Hole ID

Target Location

From (m)

To (m)

Length (m)

Au (g/t)

GR-21-22

Northeast of Pit#1

111.70

112.90

1.20

2.37

GR-21-22

Northeast of Pit#1

165.90

173.65

7.75

1.25

GR-21-22

Northeast of Pit#1

190.25

194.00

3.75

1.10

GR-21-23

Northeast of Pit#1

135.50

141.50

6.00

5.54

Including

Northeast of Pit#1

135.50

136.50

1.00

31.30

GR-21-23

Northeast of Pit#1

 188.00

193.00

5.00

0.86

GR-21-23

Northeast of Pit#1

214.50

221.60

7.10

2.44

Including

Northeast of Pit#1

214.50

215.50

1.00

11.70

GR-21-24

Northeast of Pit#1

243.75

255.45

11.70

0.78

Including

Northeast of Pit#1

247.70

248.30

0.60

5.40

Including

Northeast of Pit#1

254.90

255.45

0.55

4.99

GR-21-24

Northeast of Pit#1

336.30

340.70

4.40

0.57

GR-21-24

Northeast of Pit#1

425.85

426.35

0.50

5.73

GR-21-25

Northeast of Pit#1

169.05

170.20

1.15

2.82

GR-21-25

Northeast of Pit#1

182.45

189.00

6.55

1.01

GR-21-25

Northeast of Pit#1

201.00

206.10

5.10

1.14

Including

Northeast of Pit#1

205.60

206.10

0.50

10.05

GR-21-25

Northeast of Pit#1

258.80

261.00

2.20

3.54

GR-21-25

Northeast of Pit#1

273.20

276.70

3.50

2.43

GR-21-25

Northeast of Pit#1

289.00

291.50

2.50

2.43

including

Northeast of Pit#1

290.00

290.55

0.55

10.75

 

Please note: Bolded intervals represent assay composite calculations. Non-bolded intervals represent single assays. G/t refers to grams per tonne. Intervals are core length with no capping applied.

 

Location

 

The Granada Gold project is located near Rouyn-Noranda adjacent to the prolific Cadillac Break shear zone, which is hosted in Pontiac metasedimentary rocks, granites, and younger syenite sills along the Granada shear zone (LONG Bars Zone). The project is located on the same side of the Cadillac Fault as the Canadian Malartic mine property, which has historically produced 12.7 million Ounces of gold from 1935 to 2010 with an additional 5 million ounces as of June 18, 2020 (Canadian Malartic Technical Report of March 25, 2021 and Le Citoyen, June 19, 2020).

Qualified person

The technical information in this news release has been reviewed by Claude Duplessis, P.Eng., GoldMinds Geoservices Inc., a member of the Québec Order of Engineers, and is a qualified person in accordance with the National Instrument 43-101 standards.

 

Quality Control and Reporting Protocols

 

The 2021 assay results are from ALS laboratory in Val d’Or. The screen metallic fire assay method is pre-selected by the geologist or geological engineer when samples contain visible gold. The drill program, quality assurance, quality control (QAQC), and interpretation of results is performed by qualified persons employing procedures consistent with NI 43-101 and industry best practices. Standards and blanks are included with every 20 samples for QAQC purposes for this program in addition to the lab QAQC.

 

Mineral Resource Estimate

On March 15, 2021 the Company released an updated NI 43-101 resource estimate for the Granada Gold project (Please see January 29, 2021 news release) with a combined total of 713,000 gold ounces of measured, indicated, and inferred. This estimate contains 351,000 gold ounces of combined measured, indicated, and inferred for the open pit and 362,000 gold ounces of combined measured, indicated, and inferred for the underground. Please see Table 2 below for full details. Report reference: Granada Gold Project Mineral Resource Estimate Update, Rouyn-Noranda, Quebec, Canada authored by Yann Camus, P.Eng. and Maxime Dupéré, B.Sc, P.Geo., SGS Canada Inc. with an effective date of December 15, 2020 and signature date of March 15, 2021.

 

Table 2: Mineral Resource Estimate Showing Tonnes, Average Grade, and Gold Ounces

 

Type

Category

Tonnes

Avg Grade Au (g/t)

Gold Ounces

Open Pit

Measured

3,756,000

1.89

228,000

Indicated

1,357,000

2.55

111,000

Measured + Indicated

5,113,000

2.06

339,000

Inferred

34,000

11.29

12,000

Underground

Measured

37,000

4.22

5,000

Indicated

807,000

4.02

104,000

Measured + Indicated

844,000

4.03

109,000

Inferred

1,244,000

6.33

253,000

 

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop and explore its 100% owned Granada Gold Property near Rouyn-Noranda, Quebec which is adjacent to the prolific Cadillac Break. The Company owns 14.73 square kilometers of land in a combination of mining leases and claims. The company is currently undergoing a large drill program with 30,000m out of 120,000m complete. The drills are currently paused to provide the technical team with the necessary time to evaluate and assimilate existing data.

 

The Granada Shear Zone and the South Shear Zone contain, based on historical detailed mapping as well as from current and historical drilling, up to twenty-two mineralized structures trending east-west over five and a half kilometers. Three of these structures were mined historically from four shafts and three open pits. Historical underground grades were 8 to 10 grams per tonne gold from two shafts down to 236 m and 498 m with open pit grades from 3.5 to 5 grams per tonne gold.

 

The property includes the former Granada Gold underground mine which produced more than 50,000 ounces of gold at 10 grams per tonne gold in the 1930’s from two shafts before a fire destroyed the surface buildings.  In the 1990s, Granada Resources extracted a bulk sample (Pit #1) of 87,311 tonnes grading 5.17 g/t Au.  They also extracted a bulk sample (Pit # 2) of 22,095 tonnes grading 3.46 g/t Au.  

 

“Frank J. Basa”

Frank J. Basa, P. Eng.

Chief Executive Officer

 

For further information, Contact:

Frank J. Basa, P.Eng.

Chief Executive Officer

P: 416-625-2342

 

Or:

 

Wayne Cheveldayoff,

Corporate Communications

P: 416-710-2410

E: [email protected]

 

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. This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.

  

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Norvista Capital Announces November 30, 2021 NAV of C$0.101 per Share

Toronto, Ontario–(Newsfile Corp. – December 6, 2021) – Norvista Capital Corporation (TSXV: NVV) (the "Company") is pleased to provide investors an updated…

Toronto, Ontario–(Newsfile Corp. – December 6, 2021) – Norvista Capital Corporation (TSXV: NVV) (the “Company”) is pleased to provide investors an updated Net Asset Value (“NAV”) per share for the month ending November 30, 2021. Management has estimated the NAV of the Company at C$0.101 per share for November 30, 2021 (Table 1). At the end of November, the Company’s price per share was C$0.075.

Table 1: Norvista NAV Breakdown

Name Ticker Value Value per Share  
Rockcliff Metals Corp. RCLF:CSE $ 3,989,936 $ 0.057  
Minera Alamos Inc. MAI:TSXv $ 1,642,680 $ 0.023  
Great Bear Royalties Corp. GBRR:TSXv $ 532,602 $ 0.008  
Other Investments & Working Capital $ 916,517 $ 0.013  
Total $ 7,081,735   $ 0.101  

 

Samuel Pelaez, the Company’s President, CEO, CIO and Director stated: “The month of November saw big swings and high volatility in commodity markets. Expectations for Central Bank policy changes led to intra-month repositioning. In spite of these moves, mining equities ended roughly unchanged for the month. Tax loss continued to negatively affect the lesser liquid equities.

Derek Macpherson, Executive Chairman stated: “Despite strong share price performance from Great Bear Royalties and the liquid portion of our portfolio performing well, some of our legacy core investments (Rockcliff and Nevada Zinc) all appeared to be victims of tax loss selling. In particular, Rockcliff which announced a new resource at Bur (see release here) and drill results from Copperman (see release here) saw share price declines month-over-month despite these positive fundamental catalysts.We expect these fundamental catalysts to eventually be reflected in the share price, as tax loss selling ends later this month.”

Derek Macpherson, Executive Chairman of Norvista is a director of Rockcliff Metals.

Use of Non-GAAP Financial Measures:

This press release contains references to NAV or “net asset value per share” which is a non-GAAP financial measure. NAV is calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term NAV does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. There is no comparable GAAP financial measure presented in the Company’s consolidated financial statements and thus no applicable quantitative reconciliation for such non-GAAP financial measure. The Company believes that the measure provides information useful to its shareholders in understanding the Company’s performance, and may assist in the evaluation of the Company’s business relative to that of its peers. This data is furnished to provide additional information and does not have any standardized meaning prescribed by GAAP. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, and is not necessarily indicative of other metrics presented in accordance with GAAP. Existing NAV of the Company is not necessarily predictive of the Company’s future performance or the NAV of the Company as at any future date.

About Norvista (soon to be renamed Olive Resource Capital Inc.)

Norvista is a resource-focused merchant bank and investment company with a portfolio of publicly listed securities issued by companies engaged in precious and base metal exploration and development. The Company’s core investments include Minera Alamos Inc. and Rockcliff Metals Corporation.

For further information, please contact:

Derek Macpherson, Executive Chairman by email at [email protected] or by phone at 416-294-6713 or Samuel Pelaez, President, CEO & CIO by email [email protected] or by phone at 202-677-8513. Norvista’s website is located at www.norvistacapital.com.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way approved nor disapproved the information contained herein.

Cautionary Note Regarding Forward-Looking Statements: This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. 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, identified by words or phrases such as “believes”, “anticipates”, “expects”, “is expected”, “scheduled”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “targets”, or “hopes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “should”, “might”, “will be taken”, or “occur” and similar expressions) are not statements of historical fact and may be forward-looking statements.

This news release includes forward-looking statements that are subject to risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of Norvista to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. All statements contained in this news release, other than statements of historical fact, are to be considered forward-looking. Although Norvista believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: past success or achievement does not guarantee future success; negative investment performance; downward market fluctuations; downward fluctuations in commodity prices and changes in the prices of commodities in general; uncertainties relating to the availability and costs of financing needed in the future; interest rate and exchange rate fluctuations; changes in economic and political conditions that could negatively affect certain commodity prices; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; and those risks set out in the Company’s public documents filed on SEDAR. Accordingly, readers should not place undue reliance on forward-looking information. Norvista does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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Timberline Reports High-Grade Oxide Gold in Channel Samples from the Oswego Target, Eureka Project, Nevada

COEUR D’ALENE, ID / ACCESSWIRE / December 6, 2021 / Timberline Resources Corporation (OTCQB:TLRS)(TSX-V:TBR) ("Timberline" or the "Company") announced…

COEUR D’ALENE, ID / ACCESSWIRE / December 6, 2021 / Timberline Resources Corporation (OTCQB:TLRS)(TSX-V:TBR) (“Timberline” or the “Company”) announced today results of a systematic channel sampling campaign at the Oswego Gold Occurrence on the Eureka Gold Project in Nevada. Company geologists collected 67 channel and rock samples along the 65-metre strike length of exposed fault scarp, where historic results had indicated the presence of high-grade gold. The sampling was focused along the Trench Fault and associated cross structures. The zone of alteration and mineralization is approximately 10 metres wide, pervasively oxidized at surface, and remains open along strike and downdip. Results of the new Oswego channel and trench samples are summarized in Table 1.

The Oswego gold occurrence is located 1.2 km east of the Lookout Mountain gold resource and is along a splay of the Dugout Tunnel Fault (DTF) – a major structural break and interpreted eastern control on gold mineralization in the broader Lookout Mountain-Oswego corridor (Figure 1). All of these samples were taken from Timberline’s patented claim that encompasses the roadcut and minor historical prospect pits and adits. The Company is currently drilling along the structure to follow-up on these surface results.

Table 1. Summary of Oswego Channel Sample Gold Assay Results (No cutoff grade applied)

Sample Set

No. Samples3

Meters

Estimated True Thickness (m)

Au (g/t)

Oxide/

Sulfide1

North Trench

9

13.7

8.22

1.68

Oxide

including

1

1.5

0.9

9.05

Central Trench

7

10.7

10.7

3.63

Oxide

including

4

6.1

6.1

6.25

South Trench

7

10.7

10.7

2.41

Oxide

including

3

4.6

6.1

3.77

North Channel

17

25.9

Unknown

14.42

Oxide

including

5

7.6

23.16

Oxide

2Gap Sample

1

1.5

9.88

Oxide

Gap Sample

1

1.5

6.01

South Channel

18

27.4

12.02

Oxide

Notes:

1 57 of 67 samples were re-analyzed for gold by cyanide leach (method Au-AA13). Average estimated gold recovery by cyanide leach was 93% when compared to fire assay AA or gravimetric finish.

2 Due to limited access for safety considerations, only two samples were collectable in a 12m gap between the North and South Channel samples.

3 Six additional surface outcrop samples west of the South Channel returned no significant gold

Patrick Highsmith, Timberline’s President & CEO, commented on the significance of the Oswego sampling, “These new results from our Oswego Target are extremely exciting. The Trench Fault is continuously mineralized for at least 65 metres and remains open along strike and down dip. The consistency of grade and oxidation at surface is also very encouraging. This systematic sampling has been very helpful in designing the drillholes that are still underway. We look forward to assessing the growth potential of the Oswego Target once we have the assays in from the drilling.”

Figure 1. Location of the Oswego Gold Occurrence Relative to the Lookout Mountain Resource

Geology and Drilling Plans

The Oswego Trend has been noteworthy for both high-grade oxide gold in the vicinity of these trenches and high-grade silver and polymetallic mineralization farther to the northeast at the historical Geddes Bertrand Mine (see Company news release dated June 12, 2018). However, until the current program, there has been no drilling on the trend since approximately 1991. The major Dugout Tunnel Fault system strikes northwest through the area, including an eastern splay termed the Trench Fault. These faults dip nearly vertical and juxtapose the Cambrian Secret Canyon Formation against the older Eldorado Dolomite. The Eldorado is well known in the district as an important host of silver-lead-zinc+gold mineralization, and the Secret Canyon is interpreted to be a suitable host for Carlin-type gold mineralization.

The gold mineralization encountered in these trenches occurs in two primary units. The highest-grade mineralization occurs along the footwall fault scarp in intensely silicified Eldorado Dolomite with variable iron oxide. The silicification and iron oxide along the fault scarp are readily identifiable (see Figures 3a and 3b) and remarkably consistent in its gold content (ranging from 3.33 to 26.2 g/t Au in these channel samples). Timberline believes the siliceous fault zone continues to the north beneath detritus and slide material. The extent of silica alteration in the Eldorado to the east of the fault is not yet known due to access limitations and difficulty of sampling, but there appears to be considerable potential to expand the silicified gold zone to the east.

The lower shale member of the Secret Canyon Shale hosts the balance of the lower-grade gold identified in these trenches. The Secret Canyon, where it occurs in the hanging wall of the fault, is consistently mineralized, commonly highly foliated, enriched in iron oxide, and decalcified. Based on some of the trenches, the true width of mineralized Secret Canyon within the Trench Fault system is interpreted to be at least 11 metres.

While anomalous gold and silver occur over a larger area at Oswego, the focus of this year’s work is to test the high-grade mineralized Trench Fault by surface sampling and drilling. Most previous drilling at Oswego focused on historical workings east of the Dugout Tunnel Fault System. The historical drill results are summarized in Table 2. Timberline has already completed drill hole BHSE-207 across the Trench Fault near the southern end of these channel samples. Several more holes have been drilled farther west to test for downdip mineralization on the faults, and a few more are underway at various places along the Trench Fault (Figure 2). Multi-element analyses on the channel samples are also still pending.

Timberline has now confirmed high-grade gold mineralization by drilling and trenching at several locations in the corridor between the Lookout Mountain Resource and the Oswego Zone. Drill intercepts exceeding 3.0 and 10.0 g/t gold are shown on Figure 1. Timberline’s efforts during 2021 are focused at the Water Well Zone (WWZ) and Oswego Target, which are outside the existing gold resources. The Company also drilled a core hole to test the IP anomaly that occupies the central axis of the 1.25 km (±) wide Graben Zone.

At the WWZ, seven drill holes (a combination of core and reverse circulation) have been completed in the current round of drilling to test its northern extent, with an additional three holes in progress and three more planned. Results of this drilling will be reported as assays are received.

Sampling Methodology

Continuous rock chip samples were collected from the north, central, and south trenches which cut the Trench Fault (Figure 2) and extend into the western, hanging wall side of the subvertical fault. Geologists collected samples over nominal 1.5-metre intervals along mechanically chipped or sawn channels measuring approximately 10 cm wide x 5 cm deep. The samples in this campaign average approximately 12 kilograms. The 12-metre gap between the north and south channels was not sampled due to unstable ground (Figure 3a and 3b).

Figure 2. Geologic Map of the Oswego Gold Occurrence with Channel Sample Locations and Results

Historical Drilling

As previously reported, Oswego is a site of limited historical mining and more modern prospecting and drilling dating back to the 1980s and 1990s. The Timberline database includes at least partial data for approximately 10 drill holes at the Oswego occurrence (see Figure 2 and Table 2). Of these holes, only three appear to have drilled across the Trench Fault – the host of most of the gold reported from this sampling campaign. Holes SS-2 and SS-3 intercepted high-grade gold (≥ 3 g/t) at shallow depths beneath the channel samples. No assay or lithologic data are available for a third hole, RTR-248.

Figure 3a. Perspective View of North Channel Sampling and the Surface Trace of the Trench Fault along with North Trench. Sample bags shown alongside 1.5m intervals from channel cuts.

Figure 3b. South Looking View of the South Channel and the Surface Trace of the Trench Fault.

The Company recovered most of these drill hole collar locations, and it is clear that the Trench Fault zone has not been thoroughly drill tested.

Table 2. Historical and Recent Drill Holes at the Oswego Gold Occurrence

Hole No.

Hole Depth (m)

From (m)

To (m)

Intercept (m)

Gold (gram/tonne)

Comments

SS-2*

47

4.6

24.4

19.8

3.22

Intercepted Trench Fault beneath south end of south channel sample

SS-3*

75

3.1

6.1

3

3.22

Intercepted Trench Fault beneath south end of North channel sample

13.7

18.3

4.6

4.94

18.3

27.4

9.1

0.651

SS-12*

70

No data

Hole terminated short of Trench Fault

SS-17*

105

Holes collared east of Trench Fault in footwall Eldorado Dolomite

SS-23*

59

SS-33*

172

SS-48*

152

unknown

55

0.617

RTR-248*

79

54.9

67.1

12.2

0.034

Angle hole; unclear if intersected Trench Fault

RTR-249*

76

No significant values

Vertical hole collared west of Trench Fault

RTR-251*

140

No data

Hole terminated short of Trench Fault

BHSE-202

178

Assays Pending

Timberline 2021 drill holes

BHSE-207

114

Cautionary Statement

*These historical drill data should not be relied upon. A Qualified Person, as defined by National Instrument 43-101, has not done sufficient work to verify the historical drill information presented here. It is provided here only for context and to support the Company’s assessment of prospectivity of the target. Timberline has made considerable effort to compile and review historical drill logs and laboratory assay certificates, where available. In most cases, collar locations have also been located and surveyed. Considerable additional drilling and analysis will be required to verify the historical information and to generate a valid mineral resource.

Sampling Methodology, Chain of Custody, Quality Control and Quality Assurance

These channel samples were collected under the supervision of Timberline personnel, who transported the samples to the Company’s secure Eureka facility, where the samples were sorted, tagged with bar-coded sample numbers, and later delivered to ALS USA Inc. (ALS) in Elko, Nevada for sample preparation. Timberline has rigorous quality control measures in place at the Eureka Project, including the insertion of blind certified standard reference materials, field duplicates, and blanks. ALS assayed the samples for gold by fire assay of a 30-gram charge with an AA or ICP-ES finish (ALS code Au-AA23). The overlimits for gold samples assaying above 10 g/t were determined by a 30-gram fire assay with gravimetric finish. Samples above 0.2 g/t Au were also re-analyzed by cyanide leach (ALS code Au-AA13). In addition, gold mineralized samples are subjected to multi-element analysis (33 elements) by four-acid digestion and ICP-ES determination (ALS code ME-ICP61); the multi-element results are pending.

Steven Osterberg, Ph.D., P.G., Timberline’s Vice President Exploration, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release. Dr. Osterberg is not independent of the Company as he is an officer.

About Timberline Resources

Timberline Resources Corporation is focused on discovery of Carlin-Type gold deposits at its district-scale Eureka Project in Nevada. The Eureka Property includes the historical Lookout Mountain and Windfall mines in a total property position of approximately 24 square miles (62 square kilometers). The Lookout Mountain Resource was reported in compliance with Canadian NI 43-101 in an Updated Technical Report on the Lookout Mountain Project by Mine Development Associates, Effective March 1, 2013, filed on SEDAR April 12, 2013 (see Cautionary Note to US Investors below).

Resource Category

Tonnage

(million short tons)

Grade

(oz/ton)

Grade

(grams/tonne)

Contained Au

(troy oz)

Measured

3.04

0.035

1.2

106,000

Indicated

25.90

0.016

0.6

402,000

Inferred

11.71

0.012

0.41

141,000

The Company is also operator of the Paiute Joint Venture Project with Nevada Gold Mines in the Battle Mountain District. These properties lie on the prolific Battle Mountain-Eureka gold trend. Timberline also controls the Seven Troughs Project in northern Nevada, which is one of the state’s highest-grade former gold producers. Timberline controls over 43 square miles (111 square kilometers) of mineral rights in Nevada. Detailed maps and mineral resources estimates for the Eureka Project and NI 43-101 technical reports for its projects may be viewed at http://timberlineresources.co/.

Timberline is listed on the OTCQB where it trades under the symbol “TLRS” and on the TSX Venture Exchange where it trades under the symbol “TBR”.

On behalf of the Board of Directors,

“Patrick Highsmith”

President and CEO
Tel: 208-664-4859

Cautionary Note to U.S. Investors: The terms “mineral resource,” “measured mineral resource,” “indicated mineral resource” and “inferred mineral resource,” as used on Timberline’s website and in its news releases are Canadian mining terms that are defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). These Canadian terms are not defined terms under United States Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC by U.S. registered companies. The SEC permits U.S. companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Accordingly, note that information describing the Company’s “mineral resources” is not directly comparable to information made public by U.S. companies subject to reporting requirements under U.S. securities laws. U.S. investors are urged to consider closely the disclosure in the Company’s Form 10-K which may be secured from the Company, or online at http://www.sec.gov/edgar.shtml.

Forward-looking Statements: Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These include, but are not limited to, statements regarding the advancement of projects, the footprint and continuity of mineralization, the growth of resources, and exploration potential. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target”, “intend”, “growth opportunity” and “expect” and similar expressions, as they relate to Timberline Resources Corporation, its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to risks involving forward-looking statements include, but are not limited to, changes in the Company’s business and other factors, including risk factors discussed in the Company’s Form 10-K for the year ended September 30, 2020. Except as required by law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.

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

SOURCE: Timberline Resources Corp.

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