Jazz Resources Commences Assembly of 800 Tonne/Per Day Gravimetric Plant at the Vila Nova Gold Project and Announces Grant of Stock Options
Based on the encouraging results obtained to date, the Company is moving forward with the bulk sampling facility, manufactured by Brastorno, as recommended in the Company's National Instrument 43-101 technical report prepared by Dr. Stewart A. Jackson (2021), which can be found on the Company's SEDAR profile.
Sampling conducted on the Vila Nova Gold Project indicates widespread encouraging gold values from extensive auguring and drilling of nine areas of major tailings and mine processing rejects on the Vila Nova Gold Project. The total area sampled has been measured at 111.7 hectares. Materials being tested have accumulated from 90 years of hand mining and processing and from semi-mechanized tailings production for the last 25 years. Historical recoveries were generally poor with up to 70% of gold remaining in the waste materials.
Sampling conducted on the Property to date has returned multiple samples running as high as 10-50 grams per tonne over thicknesses averaging about 3 meters over the 111.7 hectares. Considerable variation in values to date will require many additional test holes to establish an overall definitive grade and tonnage. From work conducted to date an estimated exploration target of between 7.8 and 9.5 million tonnes grading between 2.4 to 3.0 grams per tonne can be estimated.
Pursuant to a geological report on the Vila Nova Gold Project prepared in June 2021 by geological engineer Hamilton Antonio Giampietro of GENESIS GEOLOGIA ME located in Macapa, Amapa State, Brazil, Mr. Giampietro concludes that an average grade of 2.7 grams gold per tonne can be considered, for a projected contained gold content of in excess of 700,000 ounces within the 111.7 hectares in nine separate accumulations of previously mined materials.
The reader is cautioned that there are no current "reserves" or "resources" on the Property, as such terms are defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects , and further that the Company has not conducted any Preliminary Economic Analysis (PEA) for the Property, and any mining to be conducted on the Property is subject to multiple risk factors. There can be no assurance of economic recovery of mineralized material.
All work conducted on the Vila Nova Gold Project is within environmental, social and governance ("ESG") parameters with sensitivity to the environment. The Company and ECO Mining Oil & Gaz Drilling and Exploration EIRELI of Brazil are parties to a Joint Venture Royalty Agreement, pursuant to which the Company has a 50% net profits interest in the Vila Nova Gold Project.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101, and reviewed and approved by Dr. Stewart A. Jackson, PGeo., a Qualified Person under National Instrument 43-101, and independent of the Company.
The Company also announces that it has granted 500,000 incentive stock options to a director and officer of the Company. The options may be exercised at a price of $0.45 per share for a term of 10 years. The options are subject to the terms and conditions of the Company's new stock option plan, which was adopted in February 2021. The new stock option plan was conditionally accepted by the TSX Venture Exchange (the "Exchange"), subject to compliance with the requirements set out in Exchange Policy 4.4. The options may not be exercised until such time as JZR has obtained shareholder approval for the new option plan and grant.
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Chief Executive Officer
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the terms of the Offering, the completion of the Offering and the expected use of the net proceeds received by the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; and regulatory risks. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
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