May 17, 2017
Frontline to Option 100% of its Red Lake Property Group
Toronto, Ontario -- (May 17, 2017) -- Frontline Gold Corporation (TSXV: FGC) ("Frontline" or the "Company") announces it has executed an Option Agreement with Pacton Gold Inc. ("Pacton", TSXV: PAC) wherein, Pacton has the option to acquire a 100% percent interest in the Company's Red Lake Property Group, in the Red Lake District, by making certain payments and share issuances to Frontline. Frontline's Red Lake Property Group retains a 2.25% net smelter returns royalty, with Frontline's net smelter returns royalty ranging from 0.25% to 2.25% on all the mineral claims and mineral patents. Pacton can purchase one-half (1/2) of Frontline's royalty by payment of $250,000 for each 0.25% of Frontline's Royalty.
The acquisition of the Red Lake Property Group by Pacton is subject to approval by the TSX Venture Exchange.
The prolific Red Lake Gold District, Northwestern Ontario contains some of the richest gold deposits in the world and has produced over 25 million ounces of gold from high grade zones, including 1.3 million ounces of gold produced by GoldCorp in the district at a grade of 19.5 g/t from 2013 to 2015 (source: Goldcorp's production in Red Lake -- per public disclosure).
Frontline's Red Lake Property Group
The Red Lake Property Group comprises 34 mineral claims and 2 mineral patents, totaling 274 claims units for a total area of approximately 4,420 hectares. The Red Lake Property Group primarily consists of 3 properties: 1) Baird/Heyson mineral claims ("Baird/Heyson Property"), 2) the Chukuni package, and 3) the Whitehorse Island Patents ("Whitehorse Property"):
The Baird/Heyson Property, which consists of 15 mineral claims, totalling 141 claim units, totalling 2,256 hectares, is primary located, along the south and southeast boundaries of Pure Gold Mining Inc's ("Pure Gold") 100% owned Madsen Gold Project in the Red Lake Gold District, Ontario.
The Baird/Heyson is principally hosted within Confederation Assemblage rocks, immediately south of the Balmer - Confederation unconformity, in the western portion of the Red Lake Greenstone Belt. There are three main exploration targets of interest on the property: the westward extension of the prolific Madsen Mine Trend, the New Faulkenham Mine Structure Trend, and the base-metal massive sulphide VMS Zone.
Public work assessment records indicate that a number of companies have explored portions of the South Baird Property dating back to the 1940's. Prior work assessments have confirmed the presence of potentially significant gold, silver and copper mineralization associated within favourable geological settings.
2003-2006: Solitaire Minerals - United Bolero Development Corp. completed 10 drill holes totaling 1,093 metres tested the Faulkenham Mine trend (8 holes) and the VMS copper target (2 holes) previously intersected by the 1976 Selco drilling. SB-06-03, the northern-most hole into the Faulkenham Mine trend, intersected 6 metres of 0.3 grams gold at 43 metres depth and 2.5 metres of 0.5 grams gold at 80.5 metres depth. SB-06-09 and -10 targeted the Selco VMS target. SB-06-09 intersected 10.32 metres of 0.3% copper and 0.3 grams gold (including 1.4% copper and 1.4 grams gold over 1.52 metres) at a depth of 36 metres. SB-06-10 intersected 1.5 metres of 0.4% copper and 0.3 grams gold at a depth of 78.7 metres.
Consists of 12 mineral claims, totalling 114 claim units, totalling 1,824 hectares, and lies immediately south of and adjoins the Goldcorp Red Lake Mine property. Previous exploration in the Red Lake area disclosed high grade gold mineralization and, in 1995, a rich gold deposit that was not supposed to exist, was discovered in the area now being mined by Goldcorp.
Further recommended work on the Chukuni property should involve a close examination of the recent Red Lake Camp developments and also expanding the area of historical focus away from the old showings, while noting that the previous work has at least tapped into a gold-mineralized system. (Source: Report on the 2006 Diamond Drill Program, Chukuni Property, Solitaire Minerals Corporation, January 2007, J. Garry Clarke, P.Geo.)
The Whitehorse Property comprised of two contiguous claims, totalling 35.55 hectares hosts the Whitehorse Island gold shaft and are situated southwest of and contiguous with the Goldcorp Inc. ("Goldcorp")/Premier Gold ("Premier") JV Rahill-Bonanza property, and northeast of Premier's 100% owned Hasaga property.
The Whitehorse Property has seen considerable past exploration and is host to the historic Orlac Deposit, located on and northeast of Whitehorse Island on the Property, southwest of Rahill-Bonanza has been explored and drilled since 1937 by a variety of operators, and has an historic estimated resource of 300,000 tons @ 0.08 oz/t (Noramco, 1988) and 175,000 tons @ 0.20 oz/ton Au (Cable Mines & Oils Ltd, 1948) over an area approximately 160 metres long, 3-5 metres wide, and 125 metres deep. Historic assays include intersections like 4.53 g/t Au over 26 metres and 4.70 g/t Au over 17.2 metres (Pure Gold Resources 1987-88), and 3.32 g/t Au over 28.4 metres, and 4.7 g/t Au over 17.2 metres (Noramco, 1988).
Terms of the Option Agreement
Pacton will have the option to acquire a 100 percent interest in the Red Lake Property Group from Frontline by making four (4) cash payments totaling $300,000, and issuing a total of 4,200,000 common shares to Frontline over a three (3) year period. Frontline's Red Lake Property Group retains a 2.25% net smelter returns royalty, with Frontline's net smelter returns royalty ranging from 0.25% to 2.25% on all the mineral claims and mineral patents. Pacton can purchase one-half (1/2) of Frontline's royalty by payment of $250,000 for each 0.25% of Frontline's Royalty.
Frontline is a Canadian junior mineral exploration company. The Company's principal Ontario properties include the following:
In addition to the Ontario Exploration portfolio discussed above, the Company's international principal properties include the following:
Further information about the Company is available on the Company's website, www.frontlinegold.com , or our social media sites listed below:
Facebook: https://www.facebook.com/Frontline Gold Corp./
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the uncertainties of resource and reserve estimations; receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses; fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Walter Henry, President & CEO
FRONTLINE GOLD CORP.
Contact: Walter Henry
Telephone: (416) 414-5825
Fax: (416) 363-6872
Frontline Gold Corp. (TSX-V: FGC)
1 Toronto Street, Suite 201
Toronto, Ontario M5C 2V6
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
You can view the Previous News Releases item: Tue May 9, 2017, Frontline Increases Land Position at Executed LOI To Option its Copperlode Property
You can return to the main News Releases page, or press the Back button on your browser.