Genesis Reports on 2019 Program Highlights and 2020 Plans for its Chevrier Gold Project, Quebec
Vancouver, February 5, 2020 - Genesis Metals Corp. (TSXV: GIS) ("Genesis" or the "Company") is pleased to provide a summary of results for the 2019 program and an overview of current 2020 exploration plans for its Chevrier Gold Project in the eastern Abitibi Greenstone Belt of Central Quebec.
Significant achievements in 2019 include:
- New mineral resource estimate for the Main and East zones with Indicated Resources of 395,000 oz gold averaging 1.45 g/t and Inferred Resources of 297,000 oz gold averaging 1.33 g/t (details below)
- Property-wide glacial till survey, which resulted in identification of compelling new gold targets outside of known mineralized zones (see Map 1)
- Comprehensive data compilation and interpretation initiative
- 2020 exploration program will focus on targeting high-grade zones with drilling and evaluation and testing of new gold targets
- Genesis is fully funded for its currently planned 2020 exploration program
The +290 square kilometer road accessible Chevrier property covers a 15-kilometer extent of the Fancamp Deformation Zone, along which zones of gold mineralization are associated with high strain zones in predominantly mafic volcanic rocks. The property is contiguous with the high-grade Monster Lake gold project and 20 kilometers northeast of the new IAMGOLD Corporation/Vanstar Mining Resources Inc. 3.1 Moz Nelligan gold discovery.
2019 Program Highlights:
- The Company released a new current mineral resource estimate for its Chevrier Gold Project (February 6, 2019 News Release) which included resources for the Main and East zones, summarized in Table 1 below.
Table 1: Current Chevrier Mineral Resource Estimate1
|Zone||Resource Category||Tonnes||Grade |
|Main Zone||Open Pit||Indicated||6,602,000||1.39||0.50||295,000|
|East Zone||Open Pit||Inferred||311,000||1.53||0.50||15,000|
1NI 43-101 Report for Chevrier Property, March 21, 2019 by A. Beauregard P.Geo., D. Gaudreault, P.Eng., M. Jutras P.Eng., and R. Banville P.Eng.; available on www.sedar.com and on www.genesismetalscorp.com
- Parameters used ($US): gold price =$1400/oz, $CAD/US Exchange=1.25, open pit mining cost = $2.20/t, underground mining cost = $7.50/t, processing cost = $12/t, G&A cost = $2.50/t, mill recovery = 90%, pit slopes = 50 degrees
- Tonnage and contained gold have been rounded to the nearest thousand
- It should be noted that mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves. The estimate of mineral resources may be materially affected by future changes in environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The CIM definitions were followed for the classification of indicated and inferred mineral resources. The inferred mineral resources have a lower level of confidence than that applying to indicated mineral resources and must not be converted to mineral reserves. It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.
- IOS Services Géoscientifique Inc. (IOS) were retained to execute a detailed property-wide glacial till survey as the property is largely covered by a thin 1-2 meter glacial till layer, optimal for use of a modern gold grain survey in order to detect new target zones. A total of 328 till samples were collected and interpreted by IOS using their ArtPhot automated gold grain detection and analysis technique (September 26, 2019 News Release). The average gold grain content is 20 (normalized to a 10 kg sample weight), with a maximum value of 144 grains (normalized count). The IOS gold-in-till methodology has been successfully deployed in other gold districts in the Abitibi, including Eleonore and Borden Lake.
- A property-wide structural geology framework was compiled using all aeromagnetic survey data, induced polarization (IP) data, orthophotos and geological mapping. This resulted in an improved understanding of the gold corridors and their architecture, and has constrained the search space for gold to areas within permissive/permeable "damage zone" rocks (see Map 2).
- Six (6) significant new unexplored targets have been prioritized from the final till survey results, all proximal to previously interpreted prospective gold corridors. Preliminary up-ice direction follow-up in the fall of 2019 included prospecting and rock sampling. 308 rock samples were collected, and assays ranged from below detection to 0.63 g/t Au (Map 1).
- Additional new untested targets are based on interpretation of existing geophysical and structural data along the primary gold mineralized structural corridor (Fancamp Deformation Zone) that hosts the Central, Main and East zones. A trenching program was initiated following the targeting work; 2 of 7 planned/permitted trenches were completed before season end (Map 1), and 44 rock samples were collected. Favourable mafic host rocks were encountered, however no significant geochemical anomalies were detected.
Genesis CEO Dr. David Terry commented, "The Company has made significant progress in 2019 at Chevrier, laying the groundwork for a systematic staged exploration program in 2020, for which we are fully-funded. Our primary objective is to better define and extend known higher-grade domains within previously drilled areas and evaluation of the newly identified un-tested targets on the large and prospective land package."
2020 Exploration Program:
- All geological, geophysical, and assay data is currently being compiled and re-modeled using Leapfrog™ in order to target higher-grade domains within previously drilled areas (including within and peripheral to current mineral resources), as well as within the greater Fancamp Deformation Zone and related parallel gold corridors. An initial winter/spring drilling program will test a number of these targets.
- Geophysical follow-up for high priority new target areas. Magnetic (ground, drone, or a combination) will be deployed to follow-up the new gold-in-till target areas.
- The trenching program initiated last fall will be completed once conditions allow.
- Additional ground follow-up work involving prospecting, mapping and sampling will be completed on new target areas in order to further evaluate and prioritize them for follow up trenching and/or initial drill testing later in 2020.
The Qualified Person for this news release for the purposes of National Instrument 43-101 is André Liboiron, P. Geo., Project Manager. He has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.
Genesis Metals Corp. is a member of the Discovery Group of Companies, an alliance of public companies focused on the advancement of mineral exploration and mining projects with a proven track record of generating shareholder value through responsible, sustainable, and innovative development. Discovery Group companies have generated over $500 million in direct and indirect expenditures resulting in over a billion dollars in M&A activity, with notable recent successes being the sale of Northern Empire Resources Corp. to Coeur Mining Inc. and the sale of Kaminak Gold Corp. to Goldcorp Inc. Current Discovery Group member companies include: Great Bear Resources Ltd., Bluestone Resources Inc., ValOre Metals Corp., Ethos Gold Corp., Fireweed Zinc Ltd., Dunnedin Ventures Inc., and K2 Gold Corporation.
Genesis Metals Corp. is a gold exploration company focused on advancing its Chevrier Gold Project in the prolific Abitibi region of Quebec, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
"David A. Terry"
President, CEO, and Director
Suite 1020, 800 West Pender Street, Vancouver, BC V6C 2V6
Telephone: 604-646-8356 Fax: 604-484-7155
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.
Certain disclosure in this release, including statements regarding the anticipated timing for receipt of survey and till results; the Company's exploration plans; constitute forward-looking information or statements (collectively, "forward-looking statements") for the purpose of applicable securities laws. In making the forward-looking statements, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals required to complete the Company's planned exploration and development activities; that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis; that actual results of exploration activities are consistent with management's expectations; that the current price and demand for gold will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner; Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risks include, among others, the risks related to the inability to obtain required regulatory approvals on a timely basis or at all, that the risk that actual results of the Company's exploration activities may be different than those expected by management; delays in receiving survey and till results or obtaining any required government or other regulatory approvals; inability to procure required equipment and supplies in sufficient quantities and on a timely basis; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Company's lack of operating revenues and risks related to dependence on key personnel. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly 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 required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52118