VANCOUVER, B.C. – Trans Canada Gold Corp. (TSX-V: TTG) (“Trans Canada” or the “Company”), is pleased to announce that the Company has entered into an option agreement (the “Option Agreement”) with Sokoman Minerals Corporation (TSX-V: SIC) (“Sokoman), whereby Trans Canada Gold Corp. can earn a 100% interest, subject to a 1% net smelter returns royalty (“NSR”), in the Crippleback Lake Gold Property (3,025 ha or 7,475 acres), by issuing a total of 1,250,000 shares of the Company, cash and work commitments totaling $600,000 over a 4 year period. The Crippleback Lake Gold Project covers the northeastern extension of the regional scale Valentine Lake fault zone and is situated in the same geological units that host high grade gold mineralization at Marathon’s Gold’s Valentine Lake gold deposit. The property is situated in the gold prolific and rapidly emerging Central Newfoundland Gold Belt, and is ideally situated near on trend with Sokoman’s flagship Moosehead High-Grade Gold project and discovery which is now in the midst of Phase 6 of a 50,000- metre (Phase 6) drill program.
The Crippleback Lake Gold property is located in proximity to the Trans-Canada highway in north-central Newfoundland, is easily accessible by a network of secondary logging roads and is only a short drive from assaying and diamond drilling services in Springdale, Newfoundland.
Commented Tim Coupland, “By acquiring this strategically located block of gold claims in Central Newfoundland in this present-day gold rush, our specialized Technical Advisory Team of gold experts are extremely excited about optioning and forming a strategic alliance with Sokoman Minerals and performing detailed exploration and drilling In Newfoundland. This is a remarkable opportunity for both world class gold teams of exploration geologists who can now perform exploration work, collaborate and share years of underground mining drilling knowledge, while completing exploration and drilling between Marathon Gold’s Valentine Lake gold deposit and shear zone and Sokoman’s 100% wholly owned Moosehead Gold project and discovery. The Company will be submitting exploration permit applications immediately with the Government of Newfoundland and Labrador. The Sokoman Minerals Corp. Crippleback Lake Gold option is another new strategic addition of premier gold exploration assets, that has been recently added, to our growing gold asset and base metal portfolio situated in Canada.
Tim Froude, President and CEO of Sokoman Minerals Corp. states: “We are very pleased to partner with Trans Canada and their experienced gold group at Crippleback Lake and we will assist in whatever way we can towards the advancement of the Property. Historically the area has attracted explorers for the renowned base metal potential of Central Newfoundland, today however, the focus has shifted in a monumental way to the gold potential in the region and Crippleback is exquisitely positioned in one of Canada’s hottest exploration camps. Crippleback shares many of the attributes of the advanced stage Valentine Lake Project (Marathon Gold) including the crucial structural corridor (Rogerson Lake Conglomerate), as well as the presence of the Crippleback Lake Quartz Monzonite, the on-strike equivalent of the Valentine Lake Intrusive Suite, host to Marathon’s Valentine Lake gold deposits. Sokoman shareholders will receive the benefit of an experienced team advancing the project that we were not advancing as rapidly as the property deserves. We look forward to Trans Canada Gold’s success on the Property”.
CRIPPLEBACK LAKE GOLD PROJECT – HIGHLIGHTS:
- 121 mineral claims (3025 ha or 7475 acre) fully road accessible from the TransCanada Highway with numerous secondary logging roads internal to the claims.
- Covers a 13-kilometre strike length of the gold rich Valentine Lake Structural Zone midway between Marathon Gold’s Valentine Lake Project and Sokoman Minerals high-grade gold Moosehead Project.
- Robust Gold in lake sediment and till samples, with multiple till samples exhibiting delicate (proximal to source) gold grains as well as angular float samples assaying up to 1.7 g/t gold
- All previous exploration efforts focused on base metals
- Exploration Permits pending
SUMMARY TERMS OF AGREEMENT
Trans Canada can acquire 100% of Crippleback Lake by issuing 1,250,000 common shares of Trans Canada Gold, cash and work commitments totalling $600,000 over a 4-year period. Sokoman will retain a 1.0 % net smelter return royalty on Crippleback Lake, with Trans Canada Gold having the right to buy down 0.5% of the royalty for 1,000,000
The Option agreement, including the issuance of Trans Canada Gold Shares, is subject to TSX Venture Exchange (“Exchange’) approval. The Trans Canada share will be subject to a statutory hold period.
Option Payment Summary:
- $10,000 cash and 250,000 common shares of the Company to Sokoman within 10 days of the effective date, subject to a six-month escrow period form the Effective Date following Exchange approval: on the Exercise Date, granting Sokoman a net smelter royalty to the buydown of 0.5% for 1,000,000 on the terms and conditions set forth in the Option Agreement.
- $15,000 cash, and $50,000 in property expenditures and the issuance of 250,000 common shares to Sokomon on or before the first anniversary of the Effective Date
- $25,000 Cash, and $100,000 in property expenditures and the issuance of 250,000 common shares to Sokoman on or before the second anniversary of the Effective Date
- $25,000 Cash and $150,000 in property expenditures and the issuance of 250,000 common shares to Sokoman, on or before the third anniversary of the Effective Date.
- $25,000 cash and $200,000 in property expenditures and the issuance of 250,000 common shares to Sokoman on the Property on or before the fourth anniversary of the Effective Date.
GOLD CROW DISTRICT SCALE GOLD PROJECT – GOLD, COPPER-NICKEL-COBALT PROPERTY
The Gold Crow Project s located in a 700-kilometre-long belt across the Canadian Shield from Lake Winnipeg to the James Bay lowlands, that is well endowed with gold. Total gold produced from this belt is 36 million ounces. The north trend of the property covers a 28 km length of mafic volcanics with multiple iron formation horizons ideal for hosting gold. Drill holes with gold intercepts are scattered along the length of the trend, but seem to be concentrated in a 3.5-kilometer-long area referred to here as the Jackpot Zone. The Jackpot Zone situated on the Gold Crow project, was last explored in the 2010-2012 exploration period by Jiminex Inc. The drill results include Hole MIS 11-03, which returned 5.44-meter core length of 10.86 g/t Au, including 2.40 meters of 18.26 g/t Au, which in turn included 0.30 meter of 116.0 g/t Au.
The Nickel Crow Zone, located on the north trend of the property, was explored by Sturdy Mines in 1985. Their program was successful in the search for copper-nickel with their best assay indicating 1.22% combined Cu-Ni across 15 feet. Trench samples consistently averaged 0.66% Cu (Copper), 0.25% Ni (Nickel) and 0.12% Co (Cobalt).
The Gold Crow district scale Property is recognized to host significant gold and magmatic copper-nickel-cobalt potential, and warrants a major, multiyear exploration program focused on drilling in and on strike with the Jackpot Zone and the Nickel Crow Zone. Property wide till sampling, analysis and gold grain counting, prospecting, stripping, geological mapping and drilling new high-grade targets as they are defined is planned. Lithogeochemical studies to assess magmatic copper-nickel-cobalt and VMS potential will also be carried out.
TRANS CANADA GOLD PROJECT– THE DINORWIC GOLD PROPERTY
The Trans-Canada Gold Property consists of 741 non-surveyed contiguous mineral cell claims totaling 14,880 hectares located within the Kenora Mining Division of Ontario. The property is located within the Wabigoon Greenstone Belt, which also contains the Goliath Gold deposit and the Goldlund Gold Deposit. The Property contains a number of large shear zones containing quartz carbonate veins, pyrite and arsenopyrite, underlain by mafic volcanics with felsic volcanics in the south. There is a large regional scale iron carbonate alteration within the property, which is considered to be similar to that of the Red Lake Mining Camp. The regional scale Carbonate alteration within the property associated with shear zones within iron-tholeiite are prime targets for gold exploration. The property has excellent access, with the Trans-Canada highway bisecting multiple high priority targets in a north-south direction, as well as close proximity to the large community of Dryden, Ontario. The property has access to first class infrastructure, with close proximity to a number of rail corridors and power lines. A number of gold exploration targets have been identified within the property based on their association with regional alteration, known gold showings, shear zones, complex patterns and offsets in the regional magnetic map as well as spatial association with regional structures that has the potential to be well endowed with gold mineralization.
Colin Bowdidge, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved of the technical information disclosed in the news release.
ABOUT TRANS CANADA GOLD CORP. – GOLD MINERAL EXPLORATION/ OIL AND GAS PRODUCTION
The Company is a Canadian Gold and Mineral Exploration and Oil & Gas Resource Development Company that is currently focused on developing both of its large District Scale Gold exploration projects situated in Northwestern Ontario, increasing its production capabilities, and obtaining potential future oil production revenues. The Company identifies, acquires and finances the acquisition of gold exploration properties and the ongoing development of mining and oil and gas assets primarily situated in Canada, a time-honored safe mineral exploration jurisdiction. The Company currently has two 100% wholly-owned District Scale gold mineral exploration properties in its asset portfolio, and is continually identifying low risk exploration opportunities through selective acquisitions and development of mining exploration assets situated in favorable resource jurisdictions. The Company has qualified Senior exploration management and Geological Mining teams of professionals, seasoned in exploration production, field exploration and drilling. The Company has the necessary manpower in place to develop its natural resource properties and manage its production properties. The Company is committed to minimizing risk through selective property acquisitions, and responsible exploration and development of mining, and petroleum and natural gas resource assets.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO
Trans Canada Gold Corp.
Tel: (604) 681-3131
Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.