Xander Resources Inc. (TSXV: XND) (“Xander” or the “Company”) is pleased to announce that it has entered into a definitive agreement to purchase the Blue Ribbon Property (the “Property”) which is located about 11km south-west of the Fenelon Mine Project of Wallbridge Mining Company Limited (“Wallbridge”). The Property is contiguous with Probe Metals, Midland Exploration and Great Thunder Gold properties.
The Property is made up of 34 claims which cover approximately 1,885.25 hectares (18.88km2). Access to the Property is by road 810, off Highway 109, and thereafter by a series of logging roads. The northern portion of the Property overlies the Broullian-Fenelon Group of rocks, which is comprised of felsic to mafic volcanics and sediments and is located in the northernmost greenstone segment of the Abitibi Sub-province, a region which is underexposed and underexplored. The southern part of the Property overlies the northern edge of the Broullian Intrusive complex. The intrusive/volcanic contact is coincident with the west-northwest trending Bapst Fault. The Bapst Fault trends NW-SE through the Property and is characterized by brecciated and sheared dacite, often with disseminated pyrite.
There are many gold and base metal occurrences within the Broullian-Fenelon Volcanics on the south side of the Broullian Intrusive Complex, including the former Selbaie Mine. The eastward extension of the Lower Detour Deformation Zone/the Grasset Deformation Zone is located just to the north of the Property. The Bapst Fault, which extends the length of the Property, may be a splay or bifurcation of the Grasset/Lower Detour Deformation zone.
The Fenelon Gold Camp has sparked great exploration interest, due to the success of Wallbridge’s exploration results reported in their news releases, dated December 3, 2019 and January 28, 2020 which reported of 22.73 g/t gold over 48.01 meters and 43.47 g/t gold over 19.00 meters. A 70,000 – 80,000 meter drilling program is underway on the Wallbridge property and is expected to continue through the remainder 2020. For more information, see Wallbridge’s news release dated May 19, 2020 filed on SEDAR.
The Lower Detour Deformation is one of several regional deformation zones along which a number of gold zones have been identified. These include the 58N/75 zone of Detour Gold, and intersections of 5.3 g/t Au over 3.4 meters and 17.5 g/t Au over 1 meter from the Probe Metals property and referenced in their news release, dated August 24, 2016.
The fortuitous combination of the major Bapst Fault, the intrusive/volcanic contact and the unexplored Broullian–Fenelon volcanic/sedimentary package all within the Property boundary bode well for the discovery potential of the Property.
Historical Work on the Property
Due to the depth of overburden overlying the volcanics, there has been no recorded sub-surface exploration on the Property except for four 1990 drill holes of Corona Corporation, which targeted the Bapst Fault (GM 50733). There has been a number of limited area ground Electromagnetic and Magnetometer surveys which touched the present Property or were rarely completely within it. In 1969, on the south segment of the Property, within the Broullian Intrusive Complex, a government geologist located an old trench which had exposed a 100 foot-wide zone of quartz-ankerite veins in sheared diorite. The shear zone carried small amounts of pyrite and chalcopyrite and a few specks of native gold in quartz veins. No assays were given. (Remick, J.H., 1969 RP 564(A) p. 20).
Pursuant to a letter agreement dated May 15, 2020 (the “Agreement”), the Company has agreed to acquire a 100% interest in the 34 claims which comprise the Property from an arm’s length vendor in exchange for:
- 200,000 common shares in the capital of the Company issuable on or before the Closing Date (as defined below);
- an aggregate cash payment of $2,652.50, as to $2,252.50 for staking costs and $400 for mapping costs, payable on or before the Closing Date; and
- a 2% net smelter returns royalty (the “NSR Royalty”).
Under the terms of the Agreement, the Company has the right to repurchase 0.5% (or ¼) of the NSR Royalty at any time for $500,000.
The completion of the Property purchase is to occur on the fifth date following the receipt by the Company of TSX Venture Exchange (“TSXV”) approval of the Agreement, but in any event not later than May 29, 2020 (the “Closing Date”), and is subject to the Company’s satisfactory due diligence of the Property, ratification of the terms of the Agreement by the board of directors of the Company, and the acceptance of the Agreement by the TSXV on or before the Closing Date, which conditions may be waived by the Company at any time.
Rodney Ireland, the Chief Executive Office of the Company, comments, “I am excited with recent developments in the Fenelon Gold Camp, which along with historical data, provide a positive basis for an exploration program for Xander.”
Terrence Coyle, P.Geo. (OGQ #2079), an independent Qualified Person (“QP”) as such term is defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the geological information reported in this news release.
The QP has not completed sufficient work to verify the historic information on the Property, particularly in regards to historical exploration, neighbouring properties, and government geological work. The information provides an indication of the exploration potential of the Property, but may not be representative of expected results.
On behalf of the Board of Directors,
Rodney Ireland, Chief Executive Officer
Tel: (226) 257-8994
Email: [email protected]