Gold has been designated as a strategic mineral in the United States by President Trump
Previous operators have invested over $20M in the project with over 100,000 metres of historical drilling
Project compliments the Mine Centre historical Foley Mine in Northern Ontario where approvals are being sought to re-drill for possible reactivation
Project consists of 244 mineral claims across ~2,000 hectares (“ha”)
~100,000 metres of historical drilling, including over 7,000 metres by Alamos in 2014-2015
0.34Moz in NI 43-101 compliant measured and indicated (“M&I”) mineral resources and 1.15Moz in inferred mineral resources (all on Quartz Mountain, part of the property, ~45% in oxide and transition ore) (see Table 1 below)
Surface managed by United States Forest Service, and mineral rights managed by the United States Bureau of Land Management
TORONTO, April 03, 2025 (GLOBE NEWSWIRE) --
Q-Gold Resources Ltd (TSXV: QGR, OTC: QGLDF) (“Q-Gold” or the “Company”) is pleased to announce that the Company has entered into a share exchange agreement dated March 31, 2025 (the “Agreement”) with 0975828 B.C. Ltd. (the “Target”) and its sole shareholder, Alamos Gold Inc. (“Alamos”, or the “Shareholder”), pursuant to which Q-Gold intends to indirectly acquire a later stage mineral exploration project located in south-central Oregon (the “Quartz Mountain Project”) through the purchase of all of the issued and outstanding shares of the Target from the Shareholder (the “Acquisition”). The property consists of 244 claims with approximately 2,000 ha, of which Quartz Mountain is on 86 unpatented LODE mining claims covering 704 ha, and Angel’s Camp is on 158 unpatented LODE mining claims covering 1,248 ha in south-central Oregon (collectively, the “Assets”). The Target’s indirect wholly owned subsidiary, Quartz Mountain Gold Ltd., holds a 50% interest in Angel’s Camp, together with an option to acquire the remaining 50% interest and a 100% interest in Quartz Mountain, in each case upon completion of (i) permitting and (ii) a feasibility study respecting the Quartz Mountain Project. A map with further details of the Assets is provided below (see Figure 1).
The Quartz Mountain Project is an advanced-stage exploration project located in south-central Oregon. Over the years, approximately 100,000 metres of drilling has been conducted, with the majority of work focused on the Crone Hill and Quartz Butte deposits, which host a measured, indicated and inferred mineral resource. Combined with the Angel’s Camp property (which, for certainty, comprises a portion of the Quartz Mountain Project and the Assets), the project covers a large land package which the Company believes offers significant exploration potential.
Table 1: Mineral Resources at Quartz Mountain as reported in Alamos’ Mineral Reserves and Mineral Resources as at December 31, 2024.
Gold Mineral Resources
Tonnes (000)
Grade (g/t Au)
oz Au (000)
Measured and Indicated Mineral Resources
12,156
0.87
339
Inferred Mineral Resources
39,205
0.91
1,147
Notes to Mineral Reserve and Resource Tables:
Alamos’ Mineral Reserves and Mineral Resources as at December 31, 2024 are classified in accordance with the Canadian Institute of Mining Metallurgy and Petroleum’s “CIM Standards on Mineral Resources and Reserves, Definition and Guidelines” as per Canadian Securities Administrator’s NI 43-101 requirements.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Mineral Resources are exclusive of Mineral Reserves.
All Measured, Indicated and Inferred open pit Mineral Resources are pit constrained.
The resource is based on a gold price of $1400/oz, with cut-off grades of 0.21 g/t Oxide and 0.6 g/t Sulphide and 65-80% metallurgical recovery.
Mineral resources for the Quartz Mountain Project are available on the Alamos’ website: Alamos Gold - Quartz Mountain Project United States (https://s24.q4cdn.com/779615370/files/doc_downloads/2025/02/Alamos-2024-Reserve-Resource_Final.pdf).
Image 1
Figure 1: Map showing the claims of the Quartz Mountain Project with the Crone Hill and Quartz Butte claims in blue and Angel’s Camp claims in orange.
News from Mine Centre, Ontario
Furthermore, the Company is pleased to announce that it has engaged with the Nigigoonsiminikaaning First Nation about its planned drilling program at its Mine Centre project in Ontario around the historical Foley Mine. After approval from the First Nation, the Company intends to apply for the permits from the Ontario Ministry of Energy and Mine to drill six diamond drillholes with a total of 850 metres around the previously active Foley Gold Mine.
Dr. Andreas Rompel, Q-Gold’s President and Chief Executive Officer, commented: “The Acquisition of the Quartz Mountain Project is expected to significantly increase the project list of Q-Gold with the highly prolific Mine Centre project; we are excited about the new addition and look forward to progressing both the Quartz Mountain Project and Mine Centre with a view on the higher gold price over US$3000, and the metal being designated as a strategic resource”.
The Acquisition
The Target, a company existing pursuant to the laws of the Province of British Columbia, is the sole shareholder of Orsa Ventures Corp., a corporation existing under the laws of the Province of British Columbia, which is the sole shareholder of Quartz Mountain Gold Ltd., a corporation existing under the laws of the state of Nevada that solely owns the right to earn a 100% interest in the Quartz Mountain Project.
Pursuant to the Agreement, Q-Gold has agreed to pay or issue (as applicable) to Alamos the following (the “Purchase Price”):
on the closing date of the Acquisition (the “Closing Date”):
US$2,850,000 in cash; and
such number of common shares of the Company which represent 9.99% of Q-Gold’s issued and outstanding common shares immediately prior to the Closing Date, after taking into account any common shares of the Company to be issued pursuant to the concurrent minimum $5,000,000 financing, the terms of which will be finalized in the coming weeks;
US$3,150,000 in cash or common shares (at Alamos’ election) payable on the first anniversary of the Closing Date (the “12-Month Payment”);
US$2,500,000 in cash or common shares (at Alamos’ election) payable on the second anniversary of the Closing Date (the “24-Month Payment”);
US$2,500,000 in cash or common shares (at Alamos’ election) payable on the third anniversary of the Closing Date (collectively with the 12-Month Payment and the 24-Month Payment, the “Anniversary Payments”);
US$5,000,000 in cash or common shares (at Alamos’ election) payable on the earlier of: (i) completion of a feasibility study in respect of the Quartz Mountain Project, and (ii) the Company making a decision to commence construction of a mine on the Quartz Mountain Project (the “FS Payment”); and
US$5,000,000 in cash or common shares (at Alamos’ election) payable when the Quartz Mountain Project has been permitted (collectively with the Anniversary Payments and FS Payment, the “Milestone Payments”).
