VANCOUVER, BC, July 19, 2021 /CNW/ - Trillium Gold Mines Inc.
(TSXV: TGM) (OTCQX: TGLDF) (FRA: 0702) ("Trillium Gold" or the
"Company") announces that it has entered into a non-binding Letter
of Intent ("LOI") with Infinite Ore Corp. ("Infinite Ore")
(ILI-TSX:V) (OTCQB:ARXRF) whereby Trillium Gold will acquire
all of Infinite Ore's property holdings in the Confederation Lake
assemblage of the Birch-Uchi greenstone belt near Red Lake, Ontario (the "Proposed
Transaction").
The property under LOI covers 19,438 hectares between the
Fredart, Garnet Lake, Confederation
North and Confederation South properties. (see Figure 1).
Russell Starr, President and CEO
of Trillium Gold commented, "This Proposed Transaction would
give Trillium Gold control over a significant portion of the
Confederation Lake assemblage, creating a contiguous package
extending greater than 100 km in length. Effectively,
Trillium Gold would own 100% of the largest land package in and to
the east of the Red Lake gold camp
where exciting gold exploration results are only now emerging.
Given the significance of Great Bear's Dixie Project, the prospect
of our hosting similar gold discoveries is very feasible. The
achievement of our strategy to consolidate the greenstone belt has
positioned us as the most dominant exploration company in the
Red Lake area and is significantly
accretive to the value of our Company."
William Paterson, Trillium Gold's
VP of Exploration and former Exploration Superintendent for
Goldcorp's Red Lake Gold Mines added, "Historically the
Confederation Lake assemblage has been known for base-metal
exploration including published resources, but gold-focused
exploration is a relatively recent phenomenon. Regardless, there
are gold values scattered throughout the belt that give us great
confidence that we can show this is a major gold-endowed
exploration package."
Under the Proposed Transaction and upon signing a definitive
agreement, Trillium Gold would issue 4,000,000 common shares of the
Company and pay $175,000 in cash to
Infinite Ore. In addition, Trillium Gold would assume all of
Infinite Ore's cash payment commitments under its existing option
agreements while Infinite Ore would retain its share issuance
obligations. Closing of the Proposed Transaction is expected to
occur in the third quarter and is subject to the execution of
definitive agreements and the approval of the TSX Venture
Exchange.
Both the Fredart and Garnet Lake
properties host current or historical base-metal resources with
significant precious metal (gold and silver) values. Historical
resources of 386,200 tonnes grading 1.56% Cu and 33.6 g/t Ag
(completed by Phelps-Dodge Mining Co. in 1971) on Fredart and 2.1
million tonnes grading 5.78% Zn, 0.72% Cu, 19.5 g/t Ag and 0.6 g/t
Au (3% Zn Eq cut-off) conducted by Pistol Bay in 2017 are
documented.*
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* Trillium Gold's
Qualified Person has not done sufficient work to classify either of
these estimates as current resources or mineral reserves and is not
treating these estimates as current mineral resources or mineral
reserves. While the Qualified Person believes that drilling
and analytical results were completed to industry standard
practices, insufficient work has been completed to verify the
historic information in regard to these historical drill results.
This information provides an indication of the exploration
potential of the Property but may not be representative of expected
future results.
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Both properties have excellent access and high-priority targets
for immediate follow-up work related to geophysical anomalies,
excellent host lithologies and favourable structures. A 2020 drill
program on Fredart intercepted wide zones of base-metal
mineralization that included significant Au values.
The Confederation South Block is on the south limb of the
Confederation Lake assemblage, directly on strike from Great Bear's
Dixie Project. Historical base-metal exploration had focused on the
western portion of the property leaving the eastern portion largely
unexplored. No historical gold exploration has been performed.
Qualified Person
The technical information presented in this news release has
been reviewed and approved by William Paterson QP, PGeo, VP of
Exploration of Trillium Gold Mines, as defined by NI 43-101.
Visit our website at www.trilliumgold.com.
On behalf of the Board of Directors,
Trillium Gold Mines Inc.
Russell Starr
President, CEO and Director
About Trillium Gold Mines Inc.
Trillium Gold Mines Inc. is a growth focused company engaged in
the business of acquisition, exploration and development of mineral
properties located in the Red Lake Mining District of Northern Ontario. The Company recently
increased its holdings in the Confederation Lake and Birch-Uchi
greenstone belts, and has a non-binding LOI to further consolidate
its contiguous land assemblage to more than 100 km in
length. In addition, the Company has interests in highly
prospective properties in Larder Lake,
Ontario and the Matagami
and Chibougamou areas of Quebec.
Neither 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.
This news release contains forward-looking information, which
involves known and unknown risks, uncertainties and other factors
that may cause actual events to differ materially from current
expectation. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. The Company disclaims any intention or
obligation, except to the extent required by law, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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SOURCE Trillium Gold Mines Inc.