Angold Resources - Inaugural Corporate Update
Vancouver, British Columbia, November 5, 2020 – Federal Gold Corp. (Ticker Reserved TSXV:AAU, FRA:13L1) ("Federal", or the “Company”, and post-completion of the Transaction, to be renamed “Angold”) is pleased to provide an update of the Company’s listing transaction on the TSX Venture Exchange (the “Exchange”). With closing of the over-subscribed subscription receipt financing in Federal for total proceeds of $8,000,000, the draft filing statement of ZTR Acquisition Corp. (“ZTR”) for the reverse takeover involving the acquisition by ZTR of Federal (the “Transaction”) was filed with the Exchange on October 19, 2020. Subscription receipt funds remain in escrow, pending approval of the Exchange and completion of the Transaction. The Company currently anticipates that the closing will occur within the next 30 days.
Federal’s CEO, Mr. Adrian Rothwell stated: “Thanks to all of our supporters and early subscribers in helping to ensure continued success of the Company. With funding completed and the listing process well underway, the Angold team has staked over 14,500 ha of new ground in September and conducted fieldwork leading to the identification of new targets in October. Reinterpretation of historic rock chip, soils, spectral data, geophysics and drilling on the Dorado, Chile and Iron Butte, Nevada projects has led to a greater understanding of the potential for expansion. We have commenced permitting and staffing for up to 10,000 m of drilling and look forward to a strong presence in the market upon completion of the reverse-takeover.”
Technical reports for the Company’s two material properties, Dorado and South Bay-Uchi, have been prepared with updated claim boundaries in accordance with National Instrument 43-101 and been submitted for review by the Exchange. These reports will appear on the Company’s website and www.sedar.com concurrent with closing of the Transaction.
We have more information on our projects and team on the Company’s new website at www.angoldresources.com.
Operating and Property Update:
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The Dorado Project comprises 14,770 ha of exploration and exploitation claims in the Maricunga Belt of Chile, approximately 135 km east of Copiapo with good access to infrastructure. Dorado is a gold bearing dioritic porphyry with a historic resource, and 9,333 m of historic confirmed drilling demonstrating gold in oxides and sulphides at depth and multiple targets for exploration. Drill planning and mobilization has commenced at Dorado.
Recently, the Company staked a total of 13,170 ha of exploration claims (of which 1,370 ha overlap third party concessions with preferential rights) which provide new targets for further exploration.
The Dorado project is situated in Chile’s Maricunga gold belt, a region of high-sulfidation epithermal gold-silver deposits and porphyry gold-copper deposits where an aggregate geologic resource of approximately 70M oz of gold has been defined since 1980. Mineralization and alteration on the Dorado project are typical of Maricunga-style porphyry gold deposits. Veinlet-borne gold mineralization occurs in an area of about 400 m x 400 m in two NNE trending tabular bodies ranging up to 300 m in length and 125 m in width. The property hosts a historic resource of approximately 35M tonnes grading 0.45 g/t Au for 515,000 ounces gold. A qualified person has not done sufficient work to classify this historical estimate as a current mineral resource, and the Company is not treating it as a current mineral resource. The Company’s claims hold potential exploration targets, including a coincident ring-shaped magnetic, spectral, and induced-polarization anomaly approximately 2 km wide that is essentially unexplored.
The Cordillera Property is located in the Maricunga region of Chile, approximately 100 km east of Copiapo. The Cordillera Property, which covers an area of approximately 1,680 ha, is located 7 km south of the Maricunga Mine, formerly operated by Kinross, and 3 km north of the Caspiche Deposit, now being developed by the Norte Abierto Joint Venture between Barrick and Newmont*. The Cordillera Property is an early stage property prospective for porphyry gold and epithermal gold style mineralization which has not been adequately explored. Initial results confirm epithermal mineralization with surface sample grades up to 10.3 g/t Au, and 1.6 g/t Au over 10 meters in reverse-circulation drilling (including 6.4 g/t Au over 2 m).
* The Company has not been able to verify the information on the Maricunga Mine or the Caspiche Deposit and the information is not necessarily indicative of mineralization on the Cordillera Property.
The Iron Butte Project is located 60 km south of Battle Mountain, Nevada, USA, and comprises a total of 1,539 ha of unpatented BLM claims. Upon completion of the Transaction, the Company will own 100% of 1,344 ha and is entitled to earn a 100% interest in the balance of the claims that include the historic resource for total payments of US$1,572,750 and the issuance of 187,500 shares. Previous exploration includes 31,614 m of drilling over 211 reverse circulation (RC) drill holes, indicating broad zones of gold mineralization surrounding smaller pockets of higher-grade mineralization. Drill planning is underway.
The Iron Butte property is within 50 km of four major gold deposits in east-central Nevada: Cortez, Battle Mountain, McCoy-Cove, and Fire Creek. Mineralization is characteristic of epithermal gold deposits in the region, consisting of quartz-calcite veins, chalcedonic quartz, jasperoid, and breccia accompanying clay and white mica alteration. Gold mineralization has been encountered in drilling over an area of 1.3 x 2.9 km, and surface mineralization and alteration indicate additional untested targets within the Company’s claims.
The Uchi Property, which covers an area of 6,868 ha, represents a regional exploration opportunity in a greenstone belt with known zones of significant mineralization, but which remains relatively underexplored. Federal Gold staked the Uchi Property during the fall of 2019, and subsequently staked an additional 70 claims contiguous to the north and west of the Uchi Property covering an area of 1,410 ha in September 2020. The Uchi Property is located approximately 80 km east of Red Lake, Ontario, Canada in the Birch-Uchi greenstone belt. The western portion of the Uchi Property is adjacent to the past-producing South Bay Cu-Zn-Ag mine. The eastern portion of the Uchi Property is adjacent to the past-producing Uchi Au mine. The Company has not been able to verify the information on the South Bay Mine and the Uchi Mine and the information is not necessarily indicative of mineralization on the Uchi Property.
About Federal Gold Corp.
Federal is an exploration company targeting large-scale mineral systems in the proven districts of the Maricunga, Nevada and Ontario. Upon completion of the Transaction, the Company will own a 100% interest in the Dorado, Cordillera and South Bay Uchi projects, and certain claims that append the optioned Iron Butte project.
David Smith, CPG, the Exploration Manager for Federal and a Qualified Person in accordance with National Instrument 43-101, is responsible for supervising the exploration programs at Federal’s projects and has reviewed and approved the technical information contained in this news release.
ON BEHALF OF THE BOARD OF FEDERAL GOLD
Chief Executive Officer
Further information on the Company can be found at www.angoldresources.com and at www.sedar.com (under ZTR Acquisition Corp.), or by contacting the Company by email at firstname.lastname@example.org or by telephone at (866) 852 8719.
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.
Completion of the Transaction is subject to a number of conditions, including TSX Venture Exchange acceptance. There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.
Cautionary Statement Regarding Adjacent Properties and Forward-Looking Information
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect the Company’s forward-looking information. Important factors that could cause actual results to differ materially from the Company’s expectations also include risks detailed from time to time in the filings made by the Company with securities regulators.