Vancouver, B.C. – February 12, 2021 – Opawica Explorations Inc. (“Opawica” or the “Company”) (TSX.V: OPW) is pleased to announce that it has entered into a property purchase agreement (the “Agreement”) to acquire a 100% interest, subject to net smelter returns (“NSR”) royalties of 1% to 1.5%, in the the Lil’ d’Espoir Lake Property (the “LDL”), the Chapel Island Gold Property (the “CI”), located in the Exploits Subzone of Central Newfoundland and Labrador and the Richard Copper Property (the “Richard”), located approximately 15 km from Rouyn-Noranda, Quebec from Crest Resources Inc. (“Crest”).
“These new assets are the perfect addition to our already outstanding land packages in both Quebec and Newfoundland. The Opawica team is eager to get boots on the ground and attack some of the high grade targets,” states Company President Blake Morgan.
Chapel Island Property
The CI consists of 173 mineral claims encompassing a land area of approximately 43.25 km². The property is located 1.5 km northwest of mainland Newfoundland’s Port Albert Peninsula and can be accessed from Boyd’s Cove via a causeway.
Chapel Island itself hosts several Government recognized mineral occurrences that have been documented as follows:
- Road Cut #1: Best grab sample from Road Cut #1, which was of a volcanic rock containing arsenopyrite and pyrite, returned a value of 10.4 grams per tonne gold (g/t Au). A massive sulphide float occurrence located near Road Cut #1 returned values up to 2.7 g/t Au, 10.3 g/t Ag, 0.90% Cu and 0.02% Zn (sample 12623) (Dyke, 2005).
- Road Cut #2: Best grab sample (altered mafic volcanics subcrop) containing 1% arsenopyrite and pyrite returned a value of 1.8 g/t Au (Dyke,2005).
- Road Cut #3: Best grab sample of a 3 to 4 cm wide quartz vein, containing massive to semi-massive arsenopyrite needles, and located at the contact of a mafic dyke and porphyry returned a value of 7.9 g/t Au. Best chip sample returned 3.6 g/t Au over 1.5 metres (Dyke, 2005).
- Road Cut #4: Grab sample of porphyry containing fine grained pyrite and trace arsenopyrite returned a value of 1024 ppb Au (Dyke, 2005).
- School Road: Grab sample of strongly carbonatized shear zone (0.65 metre wide) hosted sedimentary and porphyritic felsic rock returned a value of 1.7 grams per tonne gold. Arsenopyrite and pyrite mineralization are present (Dyke, 2005).
- Broken Boat: Grab samples of calcite veins in silicified sedimentary rock containing disseminated coarse grained arsenopyrite and trace pyrite returned values up to 8.3 g/t Au. Two other grab samples returned values of 6.3 g/t Au and 2.7 g/t Au (Dyke, 2005).
- Curtis Cove: Grab sample (C403191) of vuggy quartz containing both fine grains and needles of arsenopyrite returned a value of 1225 ppb Au (Dyke, 2005).
- Swamp Zone: Nine grab samples returned values greater than 1 g/t Au including two that returned values greater than 100 g/t Au up to 149 g/t Au. (Stefan Kruse of Terrane Geoscience Inc.in Quinlan 2012 [002E/10/1839]).
There have been no documented drill holes on Chapel Island to date.
The Company plans to execute preliminary data compilation as well as a site visit in early spring 2021 to explore new areas away from the easily accessible, known mineralized areas which are currently the only areas that have been sampled.
This will be followed up by a ground-based geophysical survey to better define secondary and tertiary structures associated with the regional Dog Bay Line fault, which is thought to be responsible for fluid mobilization and gold concentration in the region.
Lil’ d’Espoir Lake Property
The Lil’ d’Espoir Lake Property consists of 176 mineral claims encompassing a land area of approximately 44km². The property is located 30 km northwest of the town of Baie d’Espoir and can be accessed by a series of forest service roads. The property lies within an area called the Exploits Subzone which consists of a major thrust zone that was formed due to the closing of the ancient Iapetus Ocean. The property consists of a range of Siliciclastic sediments and assemblages of felsic volcanics and granitoids Cambrian to Ordovician in age.
In 1985 several silicified boulders were found on the shoreline of d’Espoir Lake which retuned anomalous levels of Cu, Pb, Zn, As and Ag. A limited amount of geological mapping and baseline reconnaissance has been completed and the property ahs never been drilled to date. A detailed soil survey was completed around a gold bearing boulder, anomalous Cu, Pb, Zn values returned appear to reflect underlying bedrock source areas to the south and west.
Chalcopyrite and pyrite mineralization can be found along the contact of small stocks of granite as mapped by J.M. Holmes (1987) for BP Selco. These stocks are seen to intrude sediments of the Spruce Brook Formation (S.P. Colman-Sadd, 1978).
In 1987 Selco-BP Resources Canada Ltd.’s sample HR 1592 assayed above the detection limit for copper at >1%, several others including HR 1588 and HR 1593 assayed 0.73% Cu and 0.19% Cu respectively (Holmes, 1987). Subsequently in 1989, as part of a Government funded Newfoundland and Labrador mineral branch research program one sample on the property returned 0.66 g/t Au (Colman-Sadd, pers. comm., 1989).
A geophysical magnetic survey executed by BP Selcoin in 1986 suggests a few narrow zones of higher amplitude response (500 to 2000 nt above background) found clustered in the west-central portion and south-east central portion on the property (Holmes, 1986), north of D’Espoir Lake. The general trend of the VLF responses is east-west except at the eastern side of Little D’Espoir Lake where there is a sharp swing to the northeast (Holmes, 1986).
The Company plans to do a ground-based electromagnetics program to better define deep seated structures that may tie this area to the current exploration gold boom in the exploits Subzone.
Richard Copper Property
The Richard is located approximately 15 km north of Rouyn-Noranda, Quebec and consists of four claims bisected by the Lyndhurst Fault and Deformation zone. The host rock is a brecciated/porphyritic rhyolite and holds potential VMS base metal, (copper and gold) mineralization. Historical work has been conducted on the Richard Copper project from 1947 to 1992, which will be compiled and digitised prior to the 2021 field season.
Opawica will acquire from the Vendor, an undivided 100% right, title and interest in and to the Properties, subject to the 1.5% NSR royalty reserved to the Vendor on the LDL and CI Properties and the l% underlying NSR royalty on the RC Property, for consideration of 2,000,000 common shares of the Company and 1,000,000 common share purchase warrants, payable as follows:
- 2,000,000 common shares of the Company payable to the Vendor within five business days of receipt of TSX Venture Exchange (“TSXV”) acceptance of the Agreement (the “Acceptance Date”);
- 1,000,000 common share purchase warrants exercisable at $0.31 per share for a period of 24 months from the Acceptance Date; and
- the Company shall have the right to repurchase 0.75% of the NSR for $1,000,000 at any time.
The Agreement is subject to any applicable approvals of the TSX Venture Exchange and the Canadian Securities Exchange.
The Company has assembled a group of structurally controlled gold property targets. These types of gold mineralization represent the most economically significant for gold found in Canada.
The six flagship properties are in the controlled gold systems of the Abitibi Greenstone Belt in Quebec and Rogerson Structural Gold Corridor in Newfoundland. Three Abitibi Greenstone properties are in Rouyn-Noranda camp: Arrowhead, Bazooka, and McWatters Properties. The Rogerson Structural gold Corridor in Newfoundland properties are Density, Mass, and Eclipse.
Abitibi Greenstone Belt, Quebec
Quebec’s world-class mineralization is the Abitibi Greenstone Belt which is 150 km wide and stretches 650 km from roughly Wawa, Ontario, to Val d’Or, Quebec. The belt has produced millions of ounces of gold over its history, with the Cadillac Gold Camp, Virginia town, Rouyn-Noranda Gold Camp, and Val d’Or Gold Camp being just a few of its largest contributors.
Quebec is home to 27 producing mines and over 530 surface mineral mining operations, putting the value of Quebec’s mineral shipments at $8.11 billion in 2016 (Investissement Quebec). Quebec is Canada’s second largest producer of gold, largest producer of iron and zinc, and the only North American producer of niobium. The mineral wealth is evident and is a big reason The Fraser Institute ranks Quebec among the world’s top ten in mining investments.
Based on the historical data the Company recognized that there are several unresolved structural anomalies through out the area. The Arrowhead Property is completely surrounded by Agnico Eagle Mines Limited and with historical gold values of 45.05 g/t. The Bazooka Property historical gold values of 42.5 g/t gold over 4.5 meters. McWatters Property historical gold values of 7.79 over 3 meters.
Rogerson Structural Gold Corridor, Newfoundland
Newfoundland’s Rogerson Structural Corridor gold district occurs within a northeast-trending structural corridor defined by crustal-scale faults extending forms southwestern to north-central Newfoundland. The Rogerson Lake Conglomerate characterizes the structural corridor. The presence of conglomerate reflects preservation of syn-orogenic upper crystal clastic sequences commonly associated with orogenic gold vein systems. The largest known gold resource along this corridor occurs at Marathon Gold Corporation’s Valentine Lake property.
In Marathon Gold Corporation’s press release dated April 22, 2020 Valentine Lake project has estimated Proven and Probable Mineral Reserves of 1.87 Moz (41.05 Mt at 1.41 g/t Au) and Total Measured and Indicated Mineral Resources (inclusive of the Mineral Reserves) of 3.09 Moz (54.9 Mt at 1.75 g/t Au). Additional Inferred Mineral Resources are 0.96 Moz (16.77 Mt at 1.78 g/t Au)*. Recent exploration by Antler Gold Inc. on previously unexplored property in the Wilding Lake area, adjacent to the northeast corner of the Valentine Lake property, exposed a system of gold-bearing quartz veins hosted by syn-orogenic sedimentary rocks, felsic volcanic rocks and volcaniclastic rocks.
The Company is in the process of developing a structural model for its 2021 exploration program on the Density, Mass, and Eclipse Properties.
Mr. Yvan Bussières, P.Eng., is the Qualified Person for Opawica Explorations Inc. and approves the technical content of this news release. *The qualified person has not verified the information on Abitibi Greenstone Belt and Marathon Gold Corporation’s Valentine Lake property and the information disclosed is not necessarily indicative of mineralization on the Company’s Properties that is the subject of this press release Mineralization hosted on adjacent and/or nearby and/or geologically similar properties is not necessarily indicative of mineralization hosted on the Company’s properties.
About Opawica Explorations Inc.
Opawica Explorations Inc. is a junior Canadian exploration company with a strong portfolio of precious and base metal properties within the Rouyn-Noranda region of the Abitibi Gold Belt in Québec. The Company’s management has a great track record in discovering and developing successful exploration projects. The Company’s objective is to increase shareholder value through the development of exploration properties using cost effective exploration practices, acquiring further exploration properties, and seeking partnerships by either joint venture or sale with industry leaders.
FOR FURTHER INFORMATION CONTACT:
President and Chief Executive Officer
Opawica Explorations Inc.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.
This news release contains certain forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company’s exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.