|Toronto, Ontario – August 20, 2020 – Magna Terra Minerals Inc. (the “Company” or “Magna Terra”) (TSX-V: MTT) is pleased to announce that it has expanded the Great Northern (“Great Northern”) and Viking (“Viking”) Projects, located in Western Newfoundland via a combination of staking and an option agreement. The acquisition of these 5 mineral licences expands the property size by 2,900 hectares (30%) and adds additional strategic exploration targets in areas of known gold potential (Exhibit A). The Company has also initiated a systematic exploration program at the Great Northern Project that comprises prospecting, geological mapping, soil sampling and geophysical surveying in anticipation of a fall drilling program.
- 12,675 hectares along 20 kilometres of strike of a regional-scale gold bearing structure – the Doucer’s Valley Fault;
- Newly Expanded Project is host to large untested gold bearing alteration systems:
- 1.7 kilometre zone at the Jacksons Arm Trend;
- 1.4 kilometre long geochemical anomaly at Little Davis Pond Trend;
- 3+ kilometre long by up to 40 metre wide deformation and alteration zone at the Viking Trend;
- Host to existing Mineral Resources including:
- An Inferred Mineral Resource Estimate of 5,460,000 tonnes at an average grade of 1.45 grams per tonne (“g/t”) gold containing 255,000 contained ounces at a cut-off grade of 1.0 g/t gold at the Rattling Brook Deposit; and
- An Historical Indicated Mineral Resource of 937,000 tonnes at an average grade of 2.09 g/t gold containing 63,000 ounces of gold plus an Historical Inferred Mineral Resource of 350,000 tonnes at an average grade of 1.79 g/t gold containing 20,000 ounces of gold at a cut-off grade of 1.0 g/t gold at the Thor Deposit.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All Mineral Resource Estimates were prepared in accordance with NI 43-101 and the CIM Standards (2014). Please refer to the NI 43-101 Technical Report with effective date January 23, 2019 by Harrington and Cullen (2019) as detailed below for the Great Northern Project and the NI 43-101 Technical Report with effective date August 29, 2016 by Copeland et al. (2016). An Independent Qualified Person has not carried out sufficient work to classify the Thor Historical Mineral Resource Estimate as current and Magna Terra is not considering this Mineral Resource Estimate to be current. Magna Terra considers the Thor Deposit to have potential for expansion that will be addressed by the Company in future exploration programs. See further details on Technical Reports below.
“We are pleased to follow-up our recent acquisition of the Great Northern and Viking Projects with the strategic expansion of the property, acquiring additional untested gold bearing zones. These new, low-cost, acquisitions include land adjacent to the Rattling Brook Deposit, along strike from the Jacksons Arm Prospect, and at the Little Davis Pond Prospect that add substantial value. We have initiated a systematic geological, geochemical and geophysical program at Great Northern geared towards developing a fall drilling program on priority targets that will support continued news flow over the coming months.”
~ Lew Lawrick, President and CEO, Magna Terra Minerals
At the Great Northern Project, 1 mineral licence (35 claims, 875 hectares) was acquired via map staking along the strike extension of the Jackson’s Arm Trend. An additional 3 mineral licences (13 claims, 325 hectares) were acquired via an option agreement with a local prospector (“Vendor”), covering the along strike extension of the Rattling Brook Deposit. Under terms of the agreement the Company can earn a 100% interest in the option by paying to the Vendor a total of $30,000 and issuing $15,000 in MTT shares (subject to TSX-V and regulatory approval) or pay $15,000 in cash over a 2-year period. The Property is subject to a 2% Net Smelter Return Royalty (“NSR”) payable to the Vendor with 1% NSR purchasable by MTT for $1,000,000 and right of first refusal on the remaining 1% NSR.
At the Viking Project 1 mineral licence (68 claims, 1,700 hectares) was acquired via map staking and covers an area of strongly deformed and altered Silurian volcanic and sedimentary rocks that are host to a 1.4 kilometre long geochemical anomaly (soil assays up to 530 ppb gold, and rock assays up to 22.15 g/t gold) from historic sampling at the Little Davis Pond Trend.
The Company has started a systematic exploration program focussed on the Great Northern Project that will comprise collection of 1,600 B-horizon soil samples, systematic prospecting and geological mapping, ground Induced Polarization (“IP”) and magnetic geophysical and airborne magnetic and electromagnetic surveys. The initial exploration program will be followed up with trenching and diamond drilling of priority targets in late 2020. The current program will initially focus on the Jacksons Arm Trend targeting the extension of a 1.7 km long by 40 to 400 m wide continuous alteration zone.
The Company has critically considered logistical matters given the ongoing COVID-19 pandemic, to ensure that this Exploration Program and all future programs are executed in a way that ensures the absolute health and safety of our personnel, contractors, and the communities where we operate.
The Company would like to thank the Government of Newfoundland and Labrador for partial funding of the exploration program under the Junior Exploration Assistance Program.
About the Great Northern and Viking Projects
The Great Northern and Viking Projects comprise 2 separate claim blocks (12,675 hectares) that are located near the communities of Sops Arm, Pollard’s Point and Jackson’s Arm, NL.
The Projects are centered along the Doucer’s Valley Fault, a significant geological control on, and host to, several gold deposits and untested prospects, including the Rattling Brook and the Thor Deposits, Jacksons Arm, Little Davis Pond, and Viking Trends and the Incinerator Trail Zone. Gold mineralization is hosted within a variety of rocks types that include Precambrian or Ordovician granites, or younger volcanic and sedimentary rocks, typically along splays off the Doucer’s Valley Fault. Alteration consists of mesothermal style quartz ± iron carbonate ± sulfide veins and stockworks with 2 to 5% total sulfides consisting of pyrite, galena, chalcopyrite or sphalerite, and locally show trace amounts of visible gold.
The Jacksons Arm Trend is host to a 1.7 km long by 40 to 400 m wide continuous alteration zone, that is controlled by a north-south striking fault. The fault extends immediately to the north along strike with similar repeating fault zones to the east outlining a potential strike extent of an additional 4 kilometres.
Highlights of previous surface grab samples** include:
- Assays up to 20.2 g/t gold and 1,232 g/t silver at the Boot N’ Hammer Prospect;
- Assays up to 56.7 g/t gold and 2.75 ounce per tonne silver at the Stocker Prospect;
- Assays up to 7.2 g/t gold at the Shrik Prospect; and
- Assays up to 13.6 g/t gold at the 954 Prospect.
**Grab samples are selected samples and are not necessarily indicative of mineralization that may be hosted on the property.
The Little Davis Pond Trend is underlain by strongly deformed and altered Silurian volcanic and sedimentary rocks that are host to a 1.4 kilometre long geochemical anomaly (soil assays up to 530 ppb gold, and rock assays up to 22.15 g/t gold) from historic sampling.
The Incinerator Trail Zone has been tested by four reconnaissance-style diamond drill holes in the 1980’s and returned assays of 1.78 g/t gold over 4.0 m (hole RB-35) and 2.30 g/t gold over 4.05 m (hole RB-41).
The Viking Trend is host to a 3+ kilometre long by up to 40 metre wide deformation and alteration zone with gold grades of 0.45 g/t Au over 20.0 m in hole VK-16-151, 0.37 g/t Au over 16.5 m in hole VK-11-125, as well as local high grades as indicated by 7.43 g/t Au over 1.0 m in hole VK-16-155.
Qualified Person and Technical Reports
This news release has been reviewed and approved by David A. Copeland, P. Geo., Chief Geologist with Anaconda Mining Inc., a “Qualified Person”, under National Instrument 43-101 – Standard for Disclosure for Mineral Projects. Widths from drill core intervals reported in this press release are presented as core lengths only. True widths are unknown. All quoted drill core sample intervals, grades and production statistics have been compiled from historic assessment reports obtained from either the Government of Newfoundland and Labrador.
^The Mineral Resource Estimate quoted in this press release regarding the Great Northern Project refers to the technical report: “NI 43-101 Technical Report and Updated Mineral Resource Estimate on the Rattling Brook Gold Deposit, Great Northern Project, White Bay Area, Newfoundland, Canada”, (the “Great Northern Report”) with an effective date of January 23, 2019, and authored by Matthew Harrington, P.Geo. (Independent Qualified Person) and Michael Cullen, P.Geo. (Independent Qualified Person).
^^The Historical Mineral Resource Estimate quoted in this press release regarding the Viking Project (Thor Deposit) is taken from the technical report: “NI 43-101 Technical Report And Mineral Resource Estimate For The Thor Deposit, Viking Project, White Bay Area, Newfoundland and Labrador, Canada, Latitude 49o 42′ N Longitude 57o 00′ W” prepared for Anaconda Mining Inc. by David A. Copeland, P.Geo., Dr. Shane Ebert, P. Geo. and Gary Giroux, P. Eng. M.ASc., August 29, 2016. An Independent Qualified Person has not carried out sufficient work to classify the Thor Historical Mineral Resource Estimate as current and Magna Terra is not considering this Mineral Resource Estimate to be current. Magna Terra considers the Thor Deposit to have potential for expansion that will be addressed by the Company in future exploration programs.
About Magna Terra
Magna Terra Minerals Inc. is a precious metals focused exploration company, headquartered in Toronto, Canada. Magna Terra owns two district-scale, advanced gold exploration projects in the world class mining jurisdictions of New Brunswick and Newfoundland and Labrador. Further, the Company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina which includes its precious metals discovery on its Luna Roja Project, as well as an extensive portfolio of district scale drill ready projects available for option or joint venture.
Forward Looking Statements
Neither 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.
Cautionary Statements Regarding Forward Looking Information
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company’s expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company’s public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Magna Terra Minerals Inc.
President and CEO, Director
Exhibit A: Great Northern and Viking Project acquisitions, property geology and gold incidences