NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Dec. 12, 2019 (GLOBE NEWSWIRE) -- ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF) (“ExGen”, the “Company”) is pleased to announce that the Company has entered into an option agreement with Blue Lagoon Resources Inc. (CSE:BLLG), a CSE listed company whereby BLLG can acquire an 80% interest in the Gordon Lake gold property located in the Northwest Territories of Canada. The option terms are outlined below.
ABOUT THE GORDON LAKE PROJECT
The Gordon Lake gold property consists of 2 contiguous mineral leases located 110 kilometers northeast of Yellowknife in the Northwest Territories of Canada.
The Gordon Lake Property is located on NTS sheet 085P/06 in the Northwest Territories, Canada. It is centered about 63° 17' N latitude and 113° 02' W longitude or UTM 397979 E 7018543 N (NAD83, Zone 12). The claim group lies in the Mackenzie Mining District and covers ground at the north end of Gordon Lake. This is an area associated with turbidite-hosted gold occurrences approximately 115 km northeast of Yellowknife, NT. The property covers 1505 acres centered about 2200 meters north of Gordon Lake.
Access is by helicopter and ski- or float-equipped aircraft in the winter or summer. A maintained winter road, which traverses Gordon Lake to service the diamond mines to the north, is commonly operational from the third week in January to the third week in March. This winter road traverses through the eastern portion of the property and provides truck accessibility during the winter road season. A 3 kilometer long bush road joins the Main Zone at Ven Lake with the winter road.
The most recent technical report on the property was completed by Boxxer Gold Corporation in 2011* (now Exgen). This report highlights 17 zones of high-grade shear hosted gold mineralization ( only three of which have been drill tested), over a 1 kilometer strike length (generally North to South), and have been identified by geophysical surveys (2004 and 2011 MAG and IP, and 2010 Airborne MAG) and 97 drill holes (total of 7313.8 meters) drilled in 1983, 1988 and 2005.
The gold-bearing quartz veins of Gordon-Ven Lake are classified as Coarse Gold-bearing veins occurring in metaturbidite hosted mesothermal vein systems.
INITIAL WORK PLAN
BLLG expects to immediately begin a work phase consisting of project level compilation, GIS update and assessment including a 2020 Phase One drill program. The Company plans to make use of the ice road from Yellowknife this winter and drill select targets in a phase one program beginning in late January 2020.
Pursuant to the option agreement, BLLG may acquire a 80% interest in the Property by incurring $250,000 in exploration expenditures during the first year of the option, paying $100,000 in cash and issuing 100,000 shares of the BLLG to ExGen over a period of two years, paying a further $50,000 to ExGen per year until the commencement of commercial production, and issuing a further 650,000 shares of the BLLG upon achieving certain milestones as follows: 100,000 shares upon obtaining a technical report establishing an NI 43-101 resource estimate; 200,000 shares upon obtaining a further technical report establishing economics on the property, and 350,000 shares upon commencing commercial production. In addition, upon exercise of the option, BLLG will grant ExGen a 2.5% net smelter return royalty, with all prior cash payments being credited towards royalty payments.
The option agreement is subject to stock exchange approval as applicable to each of BLLG and Exgen.
Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.
Dr. Downes has over 40 years diversified experience in gold, base metals, uranium and diamond exploration throughout North America, South America and northern Europe, and has managed exploration companies and projects in diverse geological and political environments. He was instrumental in the formation and sale of two successful mineral companies in 2005 and 2007 with the attendant formation of new companies through Plans of Arrangement. He is currently President, CEO and Director of Bessor Minerals Inc. (BST.V) and is also president of Tristia Ventures Corp., a private company providing services in mineral exploration, property valuation and geochemistry.
ABOUT EXGEN RESOURCES INC.
ExGen, formerly Boxxer Gold Corp, is a project accelerator that seeks to fund exploration and development of our projects through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. The company intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.
*Unpublished in-house report
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to: the Gordon Lake Project and the exploration and development of the Gordon Lake Project; the earning of the Option by BLLG; the exploration and development strategy of the Gordon Lake Project, including the exploration program, drilling, mine development, completion of a potential resource calculation in compliance with NI 43-101, and the timing for completion of these events; the timing for the completion of exploration drilling and the receipt of exploration information and drill assays; There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There can be no assurance that the development of the Gordon Lake Project will be completed, and if development is completed, that such development will result in a producing mine. In the forward looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In addition, ExGen has assumed: the continued market acceptance of its joint venture partnership model; the ability of ExGen and its partners to raise future equity financing, if needed, at prices acceptable to ExGen or its partners; ExGen's current and initial understanding and analysis of the Gordon Lake Project; the ability of ExGen or third parties to discover viable exploration targets and the results of exploration on the Gordon Lake Project; the ability of BLLG to explore and develop the Gordon Lake Project; the cost of exploration, including sampling, drilling and assaying, on the Gordon Lake Project, the costs of developing the Gordon Lake Project and the costs and the ability of BLLG to produce a feasibility study in compliance with NI 43-101; the costs and work required to re-open the 700 and 1100 level portals; and ExGen's general and administrative costs remaining sustainable. While, ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause ExGen's observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: there is no certainty that the Option will result in significant or successful exploration of the Gordon Lake Project or development of the Gordon Lake Project into a producing mine; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineralization and uncertainty as to the actual results of exploration and development or operational activities; uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties; the early stage development of ExGen and its projects, and in particular, the Gordon Lake Project; general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities, junior market securities and mining exploration company securities; commodity prices, in particular copper, gold, silver, and zinc prices; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting ExGen; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions and risk factors used to develop such forward-looking information that may cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the SEDAR website at www.sedar.com. Although ExGen 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. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.
For more information on ExGen please contact ExGen Resources Inc.
Chief Financial Officer