The Corcoran Canyon Joint Venture
- JV gives RCG access to an area within a prolific belt of
currently and past producing silver and gold deposits that have
historic production in excess of 138M oz silver
- Low acquisition cost for a drilled silver-gold historic
resource – US$2.6m staged earn-in by
funding project development activities to earn an 80%
interest
- RCG now focused on defining NI 43-101resource and
moving project to a pre-feasibility phase
- Represents key step in RCG's strategy of acquiring a
portfolio of low-capex development and producing precious metal
projects in North America
- Additional precious metals project acquisitions and farm-ins
pending
VANCOUVER, June 16, 2016
/CNW/ - Resource Capital Gold Corp., TSXV: RCG ("RCG" or the
"Company"), further to its announcement of 5
January 2016, is pleased to update shareholders on its
advanced silver and gold project in Nevada.
As previously advised, RCG kept the location and name of the
project confidential until it had completed the staking of an
additional 226 claims in the area. This process has now been
completed and RCG is pleased to confirm that it will explore the
highly prospective Corcoran Canyon Joint Venture (the "Project"),
which covers a total project area of 1,959 hectares following the
staking of the new claims.
The Corcoran Canyon Joint Venture
The Project is an advanced silver-gold property that lies in a
prolific belt of currently and past producing silver and gold
deposits that have historic production in excess of 138M oz
silver.1 The project is located approximately 80 km
northeast of Tonopah in central
Nevada. It consists of 253
unpatented mineral claims covering 1,959 hectares, consisting of 27
existing claims covering 219 ha and 226 new claims covering 1,740
ha recently staked by RCG.
The Project was discovered in the 1980s, and exploration has
included extensive drilling, geologic mapping, rock and soil
geochemistry, and geophysics. Exploration has outlined a historic
silver-gold resource and four exploration targets worthy of
additional evaluation. Total previous drilling on the project, the
data for which are available to the Company, is 17,647 meters in
123 holes.
Past drilling on the Corcoran Canyon project has outlined an
existing, historic silver-gold resource. The bulk of the drilling
was performed by Echo Bay Mines,
which calculated a historic resource (uncategorized) of 1.14
million tonnes grading 248 g/t Ag and 0.89 g/t Au.2 A
more recent preliminary block model estimate done in 2016 based on
the historic drilling data calculated a historic resource as
follows, using a cutoff grade of 69 g/t Ag:3
- Measured: 504,900 tonnes @ 190 g/t Ag and 0.41 g/t Au
- Indicated: 1,036,800 tonnes @ 199 g/t Ag and 0.36 g/t Au
- Inferred: 2,160,000 tonnes @ 300 g/t Ag and 0.27 g/t Au
A qualified person has not done sufficient work to classify
these historic estimates as current mineral resources or reserves,
and the Company is not treating the historical estimates as current
mineral resources or reserves.
The Company has prepared a Technical Report on Form NI-43-101
covering the project and describing these historic resource
estimates, which will be filed on SEDAR within 45 days of this
press release.
In the near future, the Company will undertake a two-stage drill
program to upgrade the historic drilling to NI43-101 standards and
to perform infill drilling. The new drill program will be followed
by the preparation of a revised Technical Report to complement the
one being filed in the near future, and which the Company expects
will contain a calculation of a 43-101 mineral resource
estimate.
RCG will then undertake a pre-feasibility study and it is the
Company's intention to rapidly advance the project towards the
development phase.
Through further drilling, RCG is confidant that it can
significantly increase the size of the currently drilled
mineralized body both from exploration within the current project
area and across the 226 new claims recently staked.
Further background on Corcoran Canyon
The Project lies in an extensive belt of prolific mineral
deposits, including: Round
Mountain (Kinross, 1.47M oz
Au proven and probable reserves, 683K oz Au measured and inferred
resources, 233K oz Au inferred resources, 198K oz Au produced in
2015)4 Northumberland (Newmont, 2.3M oz Au indicated
resources, 777K oz Au inferred resources);5 Manhattan; and the historic district of
Tonopah, which produced 138M
ounces Ag and 1.5M ounces Au. Two other historic districts near the
project, Jefferson and Belmont,
produced silver. .
Corcoran Canyon shows distinct similarities to many deposits in
this mineral trend: low-sulfidation epithermal mineralization in
caldera margin and/or range front fault zones in veins, stockworks,
and breccias hosted in hydrothermally altered felsic volcanic rocks
of Oligocene age. The project lies 20 km east of and on the
same caldera margin related to Round
Mountain.
The Corcoran Canyon project is well situated in a belt of
numerous rich silver-gold deposits, with which it shares many
similarities. Of particular note is the preponderance of large,
high-grade, low-sulfidation epithermal deposits in Oligocene-age
felsic volcanic host rocks on or near major caldera margins in this
belt, including Corcoran Canyon.
Attractive acquisition terms
As previously announced on 6 January
2016, RCG will acquire 80% of the Corcoran Canyon Project
via a low-cost earn-in joint venture structured under the following
terms:
- Earn 50% of the Project by spending US$1
million, of which $500,000
plus the property holding costs are to be spent by 31 December 2016.
- Earn an additional 30% of the project by spending a further
US$1.6 million by 31 December 2018.
- Payment of US$30,000 to the
vendor (complete) and the issue of 2 million RCG shares,1 million
of which being subject to the attainment of certain NPV milestone
in the planned pre-feasibility study.
RCG will be the Operator of the Project through the earn-in
period and beyond.
Near-term growth prospects
RCG can also confirm that it is actively assessing additional
precious metals projects in line with the Company's previously
stated goal of creating a broad-based precious metals company
focused on the Americas. Both development stage and producing
assets are being reviewed, and RCG expects to make an announcement
on the acquisition of an additional project in the near
term.
Management Commentary
RCG's Chairman and CEO Mr. George
Young commented: "The Corcoran Canyon Joint Venture
represents an excellent opportunity for RCG. We are confident that
we can add additional value to the project now that we have secured
these additional claims. It is our intention to conduct
verification and infill drilling and complete a 43-101 mineral
resource estimate, and then immediately commence pre-feasibility
work."
"This project represents the first step in RCG assembling a
portfolio of development stage and producing precious metals
projects in North America. While
the Corcoran Canyon Joint Venture is our first significant growth
step, we are pleased to confirm that further project acquisitions
and farm-ins for precious metals projects are pending."
Qualified Person
The scientific and technical data contained in this news release
was reviewed and prepared under the supervision of David S. Smith, MS, MBA, CPG, who is a Qualified
Person under National Instrument 43-101 Standards of Disclosure for
Mineral Projects.
On behalf of the Board of Directors of Resource Capital Gold
Corp.
George S.
Young
Chairman and CEO
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" and "forward-looking
statements" (collectively, "forward-looking information") within
the meaning of applicable securities laws. Forward-looking
information is generally identifiable by use of the words
"believes," "may," "plans," "will," "anticipates," "intends,"
"could", "estimates", "expects", "forecasts", "projects" and
similar expressions, and the negative of such expressions.
Forward-looking information in this news release include statements
about the option and joint venture transaction, financing
requirements and the Company's future plans, objectives and
business strategy.
In connection with the forward-looking information contained
in this news release, the Company has made numerous assumptions,
regarding, among other things, the assumption that the parties will
complete the principal conditions for completion of the
transaction, including but not limited to the receipt of necessary
shareholder and regulatory approvals; and the assumption the
Company will continue as a going concern and will continue to be
able to access the capital required to exercise the option and
advance its projects and continue operations. While the
Company considers these assumptions to be reasonable, these
assumptions are inherently subject to significant uncertainties and
contingencies. In addition, there are known and unknown risk
factors which could cause the Company's actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained herein. Known risk
factors include, among others: the inability of the Company to
complete the transaction and exercise the option; the possibility
that the necessary funds cannot be raised; and the possibility that
the Company may not be able to continue as a going concern in the
near term.
All forward-looking information herein is qualified in its
entirety by this cautionary statement, and the Company disclaims
any obligation to revise or update any such forward-looking
information or to publicly announce the result of any revisions to
any of the forward-looking information contained herein to reflect
future results, events or developments, except as required by
law.
1 Kleinhampl, F.J., and Ziony, J.I., 1984, Mineral
resources of northern Nye County,
Nevada: Nevada Bureau of Mines and Geology Bulletin 99B, 243
p.
2 Brewer, N.H., 1988, Corcoran Canyon Project,
Nye County, Nevada: report
produced for Echo Bay Explorations, Reno,
Nevada, March, 1998, 34 p.
3 Independent consultants' report, March, 2016.
4 Kinross 2015 annual
report, www.kinross.com
5 Fronteer Development Group Inc., 2008, Technical
report on the Northumberland project, Nye
County, Nevada, USA: NI 43-101 technical report,
July 28, 2008, 139 p.;
http://www.newmont.com/newsroom/newsroom-details/2011/Newmont-Expands-Nevada-Growth-Potential-With-Acquisition-of-Fronteer-Gold/default.aspx
SOURCE Resource Capital Gold Corp.