VANCOUVER, BC, Sept. 21, 2020 /CNW/ - New Dimension Resources Ltd. (TSXV: NDR) (the "Company", or "New Dimension") is pleased to announce that it has executed an earn-in agreement with Ethos Gold Corp. (TSXV: ECC)("Ethos") in which Ethos may earn-in to a 70% interest in the Savant Lake project in return for staged cash and share payments to New Dimension and $C 2M of work commitments.
The Savant Lake project is located 240km NW of Thunder Bay, Ontario, and covers 22,900 Ha (229 square kilometres) of underexplored but highly prospective stratigraphy for the discovery of high-grade iron formation- and shear-hosted gold deposits. Exploration activities to date have focused on seven known iron formation-hosted gold occurrences, with the highest gold grade showings (Horseshoe, Snowbird, L28) having never been drill tested and the remainder inadequately tested by historical drilling (see Company New Releases dated November 21, 2018 and December 2, 2019). Airborne magnetic data also indicate that 60km of cumulative strike length of prospective, folded iron formations remain to be evaluated (with 90% of this strike length having either limited or no surface exposure). Shear-hosted gold occurrences have also been identified within flanking bimodal volcanic rock sequences.
Terms of the Agreement
Ethos may earn-In to a 70% interest in the Savant Lake property in return for the following cash and share payments to New Dimension and associated work commitments:
September 20, 2021
September 20, 2022
September 20, 2023
In addition, in the event of a National Instrument 43-101 ("NI-43-101") compliant mineral resource of >1 million ounces of gold being defined on the property, then Ethos will make a further payment to New Dimension of $50,000 in cash and 2 million Ethos shares.
Eric Roth, New Dimension's CEO, commented today: "I am extremely pleased to be announcing this earn-in agreement with Ethos on our Savant Lake property. We have always been firm believers in the potential for a significant discovery at Savant Lake, and now in Ethos we have a strong partner with an impressive track record of discovery and the financial strength to move the project forward. Ethos's technical team is headed by Jo Price as VP Exploration, with Rob Carpenter - the former CEO of Kaminak Gold, which was acquired by Goldcorp in 2016 for $500 million - leading Ethos's Technical Advisory Group.
With day-to-day operations at both our Savant Lake and Domain projects now being managed by Joint Venture partners, this will allow us to focus on advancing our recently-acquired, high-grade Løkken and Kjøli copper projects in Norway and the Southern Gold Line project in Sweden towards drilling. I look forward to keeping the market informed on advances at all of our Canadian and Scandinavian projects".
About the Savant Lake Project
The Savant Lake project is located within the Archean-age Savant Lake-Sturgeon Lake greenstone belt, approximately 240 km NW of Thunder Bay and 240 km S of Newmont's operating Musselwhite mine1 (Proven and Probable Reserves at December 31, 2019: 9.9 MT @ 6.52 g/t Au for 2.09Moz Au2). The Company's mineral claims in the Savant Lake area total 229 square kilometres and cover meta-volcanic and meta-sedimentary rock sequences which are prospective for both iron formation ("Musselwhite-type")- and shear zone-hosted gold deposits, in addition to base metal-rich (copper-zinc-gold) massive sulfide ("VMS") deposits. The Company completed an initial 8 hole / 1,626 m diamond drill program at Savant Lake in 2017 on select geophysical targets in the northern part of the property, however, numerous high-grade gold targets in the central and southern portion of the property remain untested.
1 Mineralization hosted on adjacent and nearby properties is not necessarily indicative of mineralization that may be hosted on the Company's Savant Lake project. 2 Source: Newmont Reserve and Resource Statement: February 13, 2020.
Qualified Persons and Disclosure Statement
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101, and approved by Eric Roth, the Company's President & CEO, a director and a Qualified Person under NI 43-101. Mr. Roth holds a Ph.D. in Economic Geology from the University of Western Australia, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM), and is a Fellow of the Society of Economic Geologists (SEG). Mr. Roth has over 25 years of experience in international minerals exploration and mining project evaluation.
On Behalf of the Board of New Dimension Resources Ltd.
Eric Roth, Ph.D., FAusIMM
President & CEO
About New Dimension Resources Ltd
New Dimension is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions with a focus on high-grade gold and base metal deposits. The Company's current focus is on the discovery through exploration of high-grade gold deposits on its newly-acquired 100%-owned Southern Gold Line Project (Sweden), as well as on its Savant Lake project (Ontario) and its 29.6% interest in the Domain Joint Venture with Yamana Gold in Manitoba (Canada). In addition, the Company has acquired 100% interests in two large properties covering the past-producing Løkken and Kjøli copper-rich massive sulfide deposits in central Norway and in which drill-ready targets have already been identified.
Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of New Dimension, including the timing, completion of and results from the exploration and drill programs described in this release. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by New Dimension in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is 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 information. Important factors that could cause actual results to differ from this forward-looking information include those described under the heading "Risks and Uncertainties" in New Dimension's most recently filed MD&A. New Dimension does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.
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.
SOURCE New Dimension Resources Ltd.