Vancouver, British Columbia--(Newsfile Corp. - May 21, 2020) - SKRR Exploration Inc. (TSXV: SKRR) ("SKRR" or the "Company") is pleased to announce it has executed an option agreement dated May 20, 2020 (the "Agreement") with Taiga Gold Corp. (CSE: TGC) ("Taiga") whereby SKRR may earn up to a 75% interest in the Leland gold property (the "Leland Property") located 100 km east of La Ronge, northern Saskatchewan. Property highlights include numerous high-grade gold occurrences including up to 60 g/t (1.75 oz/T) gold associated with structurally-hosted quartz veins. Details of the Agreement and the Property are outlined below.
In 2019 Taiga completed a three-phase geological and geophysical program at the Leland Property. Highlights from the program include:
- Gold mineralization grading up to 5.4 g/t Au over 0.65 m within 2.1 g/t Au over 3.22 m (channel sample) from the Irving trench along the Simon-Irving Trend.
- Discovery of 5 new gold-mineralized occurrences along the Simon-Irving trend grading between 113 ppb Au and 3.5g/t Au.
- Soil geochemical results proximal to the Leland Property showing (SMDI-2390) support samples collected in 2015 and delineate a new zone of anomalous soils to the west of the Leland Property showing and northeast of the Simon Showing (SMDI-2388) that are targets for future follow up work.
- Recent staking by Taiga included claims overlying the Duck Lake Occurrence (SMDI 1731) covers two quartz stockwork zones within a shear with the Main Zone traced on surface for 180m. Limited historical grab sampling returned values up to 3.2 g/t Au.
- Planning is currently underway for the 2020 field season.
The above results were taken directly from the SMDI descriptions. Management cautions that historical results were collected and reported by past operators and have not been verified nor confirmed by a Qualified Person, but form a basis for ongoing work in the Leland Property area. Further work is required by SKRR in order to verify the historical work on the Leland Property.
Leland Project History
The Leland Property hosts several zones of orogenic gold mineralization with good exploration potential. Historic work in the western part of the Leland Property has identified numerous gold-bearing quartz veins with notable grades including the Leland Lake South Zone, which hosts grab samples ranging from trace values to up to 32.8 g/t Au and 8.6 g/t Au; and the Simon/Irving Lake Zone, which returned up to 60 g/t Au and 53 g/t Au from within a 2km x 600m shear zone centered along an open-ended contact between mafic volcanic and intrusive rocks. Near the new eastern limit of the property, known vein-hosted mineralization at the Sun Zone returned values ranging from trace quantities to up to 8 g/t Au. Gold-bearing shear zones at this location are proximal to mafic volcanic and intrusive rock units that also contain VMS-style base metal mineralization. None of the showing areas have been drill-tested but trenching indicates they contain structurally-controlled mineralization and are open along strike. The presence of amphibolite-grade meta-volcanic and associated meta-intrusive rocks hosting well-defined shear zones are considered positive indicators for the presence of orogenic gold deposits. The mineralization, host rocks and structural framework are similar to gold deposits in the region such as the nearby Seabee Gold Operation. Additionally, this prospective geology is considered to be underexplored for 30 km of strike length within the current Leland Property boundaries. SKRR cautions that past results or discoveries on proximate lands are not necessarily indicative of the results that may be achieved on the Leland Property.
Leland Option Agreement Details
Under the Agreement, SKRR may earn-in up to a 51% interest in the Property by making certain staged cash payments, share payments of common shares in the capital of SKRR ("Shares") to Taiga and exploration expenditures over a period as follows: (i) $30,000 in cash and 250,000 Shares upon final TSX Venture Exchange approval of the Agreement; (ii) $100,000 in exploration expenditures, $25,000 in cash, 250,000 Shares on or before December 31st, 2020; (iii), $600,000 in exploration expenditures (totalling $700,000) $165,000 in cash and 250,000 Shares on or before December 31, 2021; and (iv) $800,000 in exploration expenditures (totalling $1,500,000), $280,000 in cash (totalling $500,000 in cash) and 250,000 Shares (totalling 1,000,000 Shares) on or before December 31, 2022.
Taiga will be the operator of the Property until SKRR has earned a 51% interest.
SKRR may earn-in up to an additional 24% (75% total) interest in the Property by making additional exploration expenditures of $1,500,000 on the Property and issuing 500,000 Shares to Taiga on or before December 31, 2023.
Upon SKRR earning an initial 51% interest in the Property, pursuant to the Agreement, SKRR and Taiga will use commercially reasonable efforts to negotiate and execute within thirty days a joint venture agreement for the purpose of jointly carrying out exploration, evaluation and development (if applicable) of the Property.
The Property will be subject to a 2.0% NSR Royalty to Taiga with SKRR's option to repurchase 1.0% NSR Royalty for CAD$1.0 million, leaving Taiga with a 1% NSR Royalty.
The Agreement is subject to TSX Venture Exchange approval.
Advisory Board Appointment
Sherman Dahl, President and CEO of SKRR is pleased to announce the appointment of Mr. Michael Halvorson to the SKRR Advisory Board.
Mr. Dahl stated, "Both Ross McElroy (SKRR Chairman) and myself have been working with Mike for many years and are very pleased he is joining our team as an advisor. Mike told us both years ago to build up a network of people because you will need them for advice, so we are following his wise words."
Mr. Halvorson is well known for a being a specialist in junior gold companies, and being "early in the cycle". Being an early investor in SKRR and recognizing the potential of the Trans Hudson Corridor in Saskatchewan is why SKRR is pleased to welcome Mike as SKRR builds its gold portfolio and works towards a discovery.
Michael Halvorson
Mr. Halvorson has extensive experience as a board member for natural resource companies. Notable past directorships in the mineral exploration and mining sector include Viceroy Exploration Ltd., Western Silver Inc., Novagold Resources Inc., Pediment Gold Corporation, Esperanza Resources Corp., Fission Energy Corp. and Strathmore Minerals Corporation. In addition, in the oil and gas business, he served on the boards of Gentry Resources Ltd. and Novus Energy Inc. Mr. Halvorson is currently Director and Chairman of the Board of Orezone Gold Corporation.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Ross McElroy P.Geol, a director of the Company and a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
About SKRR Exploration Inc.:
SKRR is a Canadian-based precious metal explorer with properties in Saskatchewan - one of the world's highest ranked mining jurisdictions. The primary exploration focus is on the Trans-Hudson Corridor in Saskatchewan in search of world class precious metal deposits. The Trans-Hudson Orogen - although extremely well known in geological terms has been significantly under-explored in Saskatchewan. SKRR is committed to all stakeholders including shareholders, all its partners and the environment in which it operates.
ON BEHALF OF THE BOARD
Sherman Dahl
President & CEO
Tel: 250-558-8340
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 "forward-looking information or statements" within the meaning of applicable securities laws, which may include, without limitation, statements that address the TSX Venture Exchange approval of the option agreement, conduct exploration work on the Leland Project, other statements relating to the technical, financial and business prospects of the Company, its projects and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of metals, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including those filed under the Company's profile on SEDAR at www.sedar.com. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather conditions, failure to maintain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations), increase in costs, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law.
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