RETRANSMISSION: Genesis Announces 2019 Exploration Program and Expands Land Position at Chevrier Project
Newsfile Corp.
Vancouver, British Columbia--(Newsfile Corp. - May 27, 2019) - Genesis Metals Corp. (TSXV: GIS) ("Genesis" or the "Company") today announced that the Company plans to execute new surface exploration, including till sampling, geological mapping, trenching and geophysics across the Chevrier gold claims near Chibougamau-Chapais, Québec. The objective of the 2019 work program is to delineate new high-grade drill targets.
The Chevrier project has now been to expanded to 275km2 comprising of a main block of 541 contiguous mining claims including the Trendolme block composed 29 contiguous claims (~16km2). The Chevrier property, located ~35km SW of Chibougamau, is easily accessible and close to infrastructure.
"The 2019 exploration program is significant, because this is the first time the highly prospective Chevrier Project will undergo systematic property-wide mineral exploration targeting", stated Jeff Sundar, President of Genesis. "The program is designed to identify new high-grade gold targets outside of the known zones and will help the Company understand the broader potential of the property."
Exploration Methodology
Till sampling will be conducted at the property scale to identify new gold prospective target environments at Chevrier. Localized follow up till sampling, geological mapping, prospecting and induced polarization (IP) geophysical surveys will be used systematically to define targets for drill testing. These exploration methods have been known to produce positive results along trend and within the region. Targets resulting from the 2019 exploration program will be ranked and drilled according to their potential.
NI 43-101 Resources Estimate
The Company announced a new National Instrument 43-101 compliant resource estimate for the Main and East Zones at Chevrier in a news release, dated February 6, 2019. The estimate was based upon wireframe models of geology and gold grades within each zone. Areas of higher gold grades were identified within the Main Zone and these areas display a close correlation to structural zones with increased quartz veining and alteration. These observations will be used to target areas within the Main Zone with the potential to host higher grade shoots or lenses that could have a positive impact on overall gold grades within this zone.
The interpreted controls on higher gold grades as noted above combined with a synthesis of available regional magnetic and gravity data have identified multiple prospective areas at Chevrier.
Private Placement
Genesis will conduct a non-brokered private placement consisting of a combination of flow-through shares ("FT") at a price of nine cents per FT share with no warrant and Units at a price of seven cents per Unit for total gross proceeds of C$500,000. Each FT share will consist of one flow-through common share and no warrant. Each Unit will consist of one common share and one-half of one share purchase warrant, and each whole such warrant will be exercisable to acquire one additional common share of the company at a price of 10 cents for a period of two years from closing.
The proceeds from the issuance of the FT shares and Units will be used to incur exploration expenses on the Company's Chevrier gold project in Québec, and for general working capital. The closing of the private placement is subject to TSX Venture Exchange approval. The Company may pay an administration fee or finder's fee in connection with certain portions of the private placement.
Qualified Person
Mr. Andre Liboiron, P. Geo, Exploration Manager for the Company and the Qualified Person as defined within National Instrument 43-101 for the Chevrier Project, has reviewed and approved of the contents of this news release.
About Genesis Metals
The Company is focused on advancing the Chevrier Gold Project located 35 km southwest of Chibougamau, Québec. On February 6, 2019, Genesis announced a new resource estimate for Chevrier: 423,000 ounces Indicated at 1.22 g/t gold and 303,000 ounces Inferred at 1.27 g/t gold.* Chevrier is located along the Fancamp Deformation Zone, 15 km northeast of the high-grade Monster Lake gold deposit, 28km NNE of the Nelligan project of IAMGold / Vanstar and 15 km northwest of the past producing high-grade Joe Mann gold mine.
Genesis also owns 100% the 203 km2 October Gold project located in the southern Swayze greenstone belt in Benton Township, Ontario. This project is located 35 km northwest of IAMGold and Sumitomo Mining's Coté Lake deposit and 50km southeast of Newmont Goldcorp's Borden gold deposit.
*Both Indicated and Inferred categories comprise pit constrained and underground components with cut-off grades of 0.3 g/t Au and 0.95 g/t Au respectively (as previously disclosed in a Company news release, dated February 6, 2019)
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The CIM definitions were followed for the classification of Indicated and Inferred Mineral Resources. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated Mineral Resource category.
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.
Certain disclosure in this release, including statements regarding the intended use of proceeds from the private placement, constitute forward-looking information or statements (collectively, "forward-looking statements") for the purpose of applicable securities laws. In making the forward-looking statements, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals required to complete the Company's planned exploration and development activities, that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that the Company will be unable to obtain required regulatory approvals on a timely basis or at all, that actual results of the Company's exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Chevrier Property
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