MIRAMICHI, New Brunswick, Sept. 06, 2023 (GLOBE NEWSWIRE) — SLAM Exploration Ltd. (TSXV-SXL) (“SLAM” or the “Company”) is pleased to announce it has entered into an arm’s length option agreement dated September 01, 2023, to acquire a 100% interest in and to the Mine Road project, which is located adjacent to the former producing Heath Steele mine in the Bathurst Mining Camp (“BMC”) of northern New Brunswick.
- Railroad Zone: 14.51% zinc, 5.86% lead, 0.67% copper and 139.9 g/t silver over a 9.0 metre interval in diamond drill hole IL2014-003.
- Roche Trend: Diamond drill hole IL2018-01 intersected 7.0 meters of 0.9% copper on the Roche Trend, 5 kilometres southwest of the Railroad Zone.
- Infrastructure: Paved road and high voltage powerline transect the property.
- Drill-ready project: Untested conductors, magnetic and soil anomalies as well as priority targets on the Railroad and Roche Zones.
Previously drilled holes include IL2014-003 that cored 14.51% zinc, 5.86% lead, 0.67% copper and 139.9 g/t silver over a 9.0 metre interval (7.8 metre true width). This hole also intersected 6.57% zinc, 2.78% lead, 0.46% copper, and 68.1 g/t silver over a 3 m core interval (2.6 metre true width). This was one of 5 holes drilled on the Railroad Zone in 2014.
On the Roche Trend, 5 kilometres southwest of the Railroad Zone, diamond drill hole IL2018-01 intersected 7.0 meters of 0.9% copper. This is the deepest intercept on the Roche Trend and according to accepted models for VMS deposits, the increasing copper content may signify that the core of the deposit lies below this hole.
SLAM President Mike Taylor states, “This is a drill ready project with a massive previous work database that is available to design drilling programs to test for potential extensions and new discoveries. The BMC was a prolific producer of zinc, lead, copper and silver and is long overdue for such a discovery.”
Mine Road Project: The 7,500 hectare Mine Road project comprises 347 units in 2 mineral claims adjacent to the former producing Heath Steele mine property. From 1957 and 1996, the operator mined 21 million tonnes at Heath Steele with an average grade of 4.98% zinc, 0.36% lead, 0.54% copper and 69.66 g/t silver. A total of 2,330 million pounds of zinc, 833 million pounds of lead, 446 million pounds of copper and 45 million ounces of silver were processed. (For reference, these numbers are derived from: McCutcheon, S.R. (compiler) 1997; Geology and massive sulphides of the Bathurst Camp, New Brunswick; Geological Association of Canada – Mineralogical Association of Canada, Joint Annual Meeting, Ottawa ’97, Field Trip B7, Guidebook, 85 p.)
Volcanogenic Massive Sulphide Occurrences: The Mine Road project contains 7 volcanogenic massive sulphide occurrences including the Railroad Zone described above. The Company expects to generate additional targets once the Mine Road project database is integrated with SLAM’s extensive Bathurst Joint Venture database. A total of $1,448,000 in exploration expenditures have been applied to the Mine Road project during the past 10 years and assessment work credits of $428,776 are available for future claim renewals.
Infrastructure: The Mine Road project is located on the Mine Road (Route 430) which connects the former Heath Steele mine to the city of Miramichi which is 60 kilometres to the southeast. The claims are accessed from this paved road and a series of logging roads. Electric power is available from lines that connect Heath Steele to the New Brunswick power grid.
The Agreement: The Company can earn a 100% interest in and to the Mine Road project by making the following cash payments and common share issuances:
|Due Date||Cash Payments||Common Share Issuances|
|Within 5 days receipt of approval from the TSX-V||–||100,000|
|On or before the 1st anniversary of the option agreement||$10,000||100,000|
|On or before the 2nd anniversary of the option agreement||$10,000||100,000|
|On or before the 3rd anniversary of the option agreement||$10,000||100,000|
|On or before the 4th anniversary of the option agreement||$20,000||100,000|
The Mine Road project is subject to a 2% NSR royalty. SLAM retains the right to buy back half the royalty equal to 1.0% NSR for $1,000,000 and the further right to buy back the remaining royalty equal to 1.0% NSR for $1,000,000 at any time. The option agreement and proposed share issuances remain subject to approval by the TSX Venture Exchange. All security issuances will be subject to a statutory hold period of 4 months and one day from issuance in accordance with Canadian securities laws. No finders’ fees were paid on this arm’s length agreement.
About SLAM Exploration Ltd:
The Mine Road project is a significant addition to SLAM’s portfolio of wholly-owned BMC projects that include the A’Hearn, Strachens and Portage volcanogenic massive sulphide projects. The Company has extensive experience in the BMC and owns a huge database covering the entire mining camp dating back to its participation in the Bathurst Joint Venture. The Company holds NSR royalties and expects additional cash and share payments on the Wedge, Goodwin, Ramsay and Ferguson projects in this mineral rich area.
Elsewhere in the mineral-rich province of New Brunswick, exploration for gold along regional fault structures has resulted in significant gold discoveries. These include the Maisie gold vein system at SLAM’s wholly owned Menneval project. With gold and copper trends up to 20 km long, SLAM has identified an area with high potential for additional gold discoveries and acquired the Shadow Lake, Jake Lee, Rogers Lake and Highway projects. Gold assays are pending on 250 soil samples. These projects are associated with the Fundy fault zone and located in southwestern New Brunswick where Galway Metals recently announced a 2.3-million-ounce gold deposit at Clarence stream. Targeting critical elements as well as gold, the Company aggressively pursues new exploration opportunities such as the recent Highway and Mine Road acquisitions.
QA-QC Procedures: The drilling results described above are from assessment reports by well established mining firms with assays from commercial laboratories. The assessment reports included a summary of QA-QC procedures and the Company deems these results to be reliable.
Qualifying Statements: Mike Taylor P.Geo, President and CEO of SLAM Exploration Ltd., is a qualified person as defined by National Instrument 43-101, and has approved the contents of this news release.
Certain information in this press release may constitute forward-looking information, including statements regarding mineral resources and the Company’s plans with respect to the exploration and development of its properties. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. There are a number of risk factors that could cause future results to differ materially from those described herein. Information identifying risks and uncertainties is contained in the Company’s filings with the Canadian securities regulators, which filings are available at www.sedarplus.ca. 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 release.
Mike Taylor, President & CEO
Contact: 506-623-8960 [email protected]
Eugene Beukman, CFO
Contact: 604-687-2038 [email protected]