|By Marketwired .||
|June 24, 2014 02:27 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 06/24/14 -- Goldspike Exploration Inc. ("Goldspike" or the "Company") (TSX VENTURE: GSE) is pleased to report that it has entered into an assignment agreement granting the Company the right to acquire a 100% interest in the Lone Mountain Zinc Property (the "Property") comprised of 170 claims in Eureka County, Nevada, (Figure 1). The Property contains a significant drill hole zinc lead discovery that intersects several intervals of high grade zinc lead mineralization including an interval at the bottom of the hole assaying 41.3% zinc and 1.4% lead over 4.1 metres. The discovery hole ended in high grade zinc lead mineralization. No further work has been completed on the Property since this zinc discovery in 2007. The Company has commenced fieldwork on the Property and will begin drilling as soon as arrangements can be finalized.
Highlights on the Property include:
-- High grade zinc lead mineralized intervals were discovered in reverse circulation drill hole LM-07-01. The mineralization is reported to commence at 114.3 metres down hole and to continue to the bottom of the hole at 155.4 metres for an aggregate interval of 41.1 metres. -- No sample material was recovered from one interval of 7.62 metres. This interval was bounded by high grade zinc lead mineralization. It is not known if this interval was mineralized. As a result of a lack of assays for this interval, composite assay values for the entire interval cannot be calculated. -- The hole ended in high grade zinc lead mineralization grading 38.8% zinc and 2.3% lead over 1.52 metres. -- The drill hole encountered lead values of up to 51.24% over 1.52 metres in the upper part of the mineralized interval. -- The drill hole contained zinc values of up to 48.4% over 1.52 metres in the lower part of the mineralized interval. -- Only two intervals were assayed for germanium content and these intervals at the bottom of the discovery hole were found to contain significant germanium with values of 103 grams per tonne and 133 grams per tonne. -- Composite assay intervals in the discovery drill hole included an upper high grade interval grading 32.55% lead and 0.71% zinc over 6.08 metres and a high grade interval at the bottom of the hole grading 41.3% zinc and 1.4% lead over 4.2 metres. -- At the time of the discovery in 2007 and by the time the presence of the high grade zinc lead mineralization was established by assaying, the drill had been de-mobilized from the Property and no further drilling has been completed since the receipt of these high grade zinc lead assays. -- While it was reported that further work was contemplated and planned, it appears that a series of events that included corporate M&A activity, the global financial crisis and metal and stock market turmoil apparently precluded any follow-up exploration on the Property. The vendors eventually reacquired the Property and have held it privately since that time. -- At the time of the zinc lead discovery, the lessee was evaluating the Property (as defined at that time) for its precious metal potential. -- As part of that exploration program the lessee at the time carried out programs that included geological mapping of the somewhat limited outcrop, geophysical surveys and compilations, as well as soil geochemical surveying. This preliminary work was followed by a five hole, 795.5 metre reverse circulation drilling program. Current available information indicates no field work was competed after the drilling was terminated. -- Of particular note, the soil geochemical sampling was carried out on wide spaced (500 metre centered) lines. Samples were collected at only 50 metre intervals on the lines. The samples were analyzed for a suite of elements and an evaluation of those results show the strong correlation of a suite of indicator elements with the location of the historic zinc mine workings and scattered surface trenches that contain zinc mineralization as well as the location of the high grade zinc lead mineralization in the discovery drill hole, (Figure 2), (Figure 4). -- The suite of elements that correlate with the presence of zinc lead mineralization include: zinc, lead, barium, mercury, cadmium, arsenic, copper and thallium. The overall trend of this suite of elements can be traced for more than 3 kilometres in a direction sub-parallel to the bedding in a general northwest to southeast direction. The geochemical anomaly tested with the discovery hole was not the strongest part of the more than 3 kilometre long multi-element anomaly. -- Goldspike has mobilized exploration personnel to the Property to undertake field work in preparation for drilling and the Company will commence drilling immediately upon receipt of the necessary approvals.
At this time, the Company has not been able to ascertain the details, if any, of any QA/QC programs that were in place at the time of the last work on the Property and therefore the Company advises readers that all technical data in this release must be assumed to be historical in nature and as such should not be relied upon.
Commenting on the acquisition, the Company's President and CEO Bruce Durham said; "since our IPO in August of 2011 we have been searching for a special project to complement our extensive Yukon holdings and we have reviewed dozens of opportunities. What makes the Lone Mountain Zinc Property so special is the fact that it is a high grade, very significant drill hole discovery that remains open in all directions. No follow-up was ever completed. The land package covers a large area, the target is extensive and the project is located in a great jurisdiction. We are excited to secure the Property and can't wait to start drilling."
History of Work and Geology
Zinc mineralization was first reported to have been mined in the area of the Property in 1942 and operations between 1942 and 1964 were reported to have mined nearly 5 million pounds of zinc, 650 thousand pounds of lead and 4 thousand ounces of silver. Mined mineralization has been reported to consist of smithsonite, zincite, hydrozincite, cerussite, malachite and azurite along with minor sulphides. At this time it does not appear there is any public record of any significant history of modern exploration work in the area of the Property for zinc lead mineralization. The discovery of the high grade zinc lead mineralization in hole LM-07-01 appears to be a largely fortuitous event that occurred in the course of exploring the property for precious metal mineralization. The Company is not aware of any mineralogical work having been completed on the mineralization in discovery hole LM-07-01. Part of the property that extends well to the southeast of the discovery hole is reported to have prospectivity for gold. The Company will evaluate these prospects as work on the Property proceeds.
Work by the previous lessee in the period from 2006-2008 included re-evaluation of the gravity and magnetic data available on the Property. Their evaluation also included the geochemical surveying as described above and also included a CSAMT geophysical survey that successfully identified a significant resistivity contact crossing much of the Property in a direction mostly parallel to the interpreted stratigraphic trends in the area. The high grade zinc lead mineralization appears to sit very close to the interpreted resistivity contact, (Figure 3). This interpreted contact may prove to be an excellent marker in follow-up drilling programs.
The mineralization discovered in drill hole LM-07-01 has not been well studied and remains open to considerable interpretation. The mineralization is thought to be located at or close to the contact of the Devils Gate Formation, an Early to Middle Devonian dolomite in the Nevada Formation. Rocks in the area generally strike northwest-southeast and dip generally 55 degrees easterly, (Figure 5). There is a suggestion by some workers that the mineralization may be located at the intersection of northwest and generally northeast trending structures, however, the single drill hole in the high grade zinc lead discovery to-date, LM-07-01, precludes any conclusions at this time as to the orientation of the mineralization. The previous operator of the Property drilled four additional holes to the discovery hole. The second hole, drilled on the same section line as discovery hole LM-07-01, was collared 100 metres to the north and drilled parallel to hole LM-07-01, (Figure 5). The second hole was stopped at 183 metres and based on the geology and assay data from samples at the bottom of the hole it appears to the Company that this hole was stopped just above the down dip extension of the high grade zinc lead mineralization. The remaining three holes were drilled 3 kilometres to the east of the discovery hole evaluating other unrelated targets, thereby leaving the high grade zinc lead discovery completely untested up dip, down dip and along strike.
Principal Transaction Terms
Goldspike has been granted the right to acquire a 100% interest in the 170 claims that comprise the Property pursuant to an assignment agreement (the "Assignment Agreement") between Norvista Capital Corporation ("Norvista") and the Company. Pursuant to the terms of the Assignment Agreement, Norvista will assign all of its rights and obligations under a lease agreement of the Property (the "Lease Agreement") between Norvista, as lessee, and Owyhee Exploration II LLC, as lessor, to Lone Mountain Zinc Ltd., a wholly-owned Nevada subsidiary of the Company.
Under the terms of the Lease Agreement the lessee has the right to continually lease the Property for a minimum 20 year period or longer if the Lease Agreement is extended beyond 20 years. The principal terms of the Lease Agreement require the lessee to make annual lease payments of $25,000 to the lessor during the first three years of the Lease Agreement, after which the lease payments increase to $50,000 per year in years four and five. Beginning in year six and thereafter the lease payments increase to $100,000 per year, however, these lease payments are treated as advances against royalty payments from production, if any, during the year the lease payment is made.
The lessee must also make all payments to keep the Property in good standing and must carry out work programs during the first five years of the Lease Agreement. The work programs are comprised of a minimum of $50,000 per year in the first three years of the Lease Agreement and a minimum of $100,000 in years four and five of the Lease Agreement.
The Lessor will retain a 3% net smelter returns royalty on precious metals production, if any, and a 2% net smelter returns royalty on base metal production, if any, from the Property. The precious metals and base metals net smelter returns royalties on the Property can be reduced to 2% and 1%, respectively, under certain circumstances.
R. Bruce Durham, President and Chief Executive Officer of the Company, and Donald H. Christie, Chief Financial Officer and Secretary of the Company, both also serve as directors of Norvista. As such, the assignment of the Property under the terms of the Assignment Agreement `is a "related party transaction" for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on an exemption from the minority approval and formal valuation requirements of MI 61-101 due to the fact that the value of the transaction does not represent greater than 25% of the Company's market capitalization. The independent directors of the Company approved the Assignment Agreement and Messers. Durham and Christie abstained from voting on the approval of the Assignment Agreement. Other than Mr. Durham and Mr. Christie, no director of the Company abstained from voting on the Assignment Agreement.
Pursuant to the terms of the Assignment Agreement the Company will issue 2,000,000 common shares in its capital stock (the "Common Shares") to Norvista at a deemed value of $0.15 per Common Share and grant Norvista the right to subscribe to a private placement of up to 3,333,333 Common Shares at a price of $0.15 per Common Share for gross proceeds of up to $500,000 (the "Financing").
The closing of the Assignment Agreement and the completion of the proposed Financing are subject to the approval of the TSX Venture Exchange.
The scientific and technical information in this press release has been reviewed by the Company's President and CEO, Bruce Durham, P.Geo, who is a "Qualified Person" as that term is defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
All technical information contained herein is considered to be historical in nature and should not be relied upon. The Company is in the process of determining the quality and completeness of the work completed in the period 2006-2008 and is satisfied at this point that the work was completed in a professional manner and will provide updates on its follow-up work on this matter as appropriate.
The Company will also commence work on some of its landholdings in Yukon over the next 30 days particularly at the Livingstone project where the Company hopes to expand on the bedrock gold discovery last year in an area located up hill and upstream from the historic Livingstone placer gold creeks where more than 50,000 ounces in mostly coarse gold nuggets were mined historically.
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.
CAUTIONARY STATEMENT: This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release relates to, among other matters, the Company's indirect interest in the Project under the terms of the Assignment Agreement and the proposed Financing. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to convert any estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining of failures to obtain required regulatory approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of the Project, risks involved in the mineral exploration and development industry, and those other risks set out in the Company's public documents filed on SEDAR. The Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable. Nevertheless, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 02:30 PM EST Reads: 4,301
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Dec. 7, 2016 02:30 PM EST Reads: 935
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Dec. 7, 2016 02:24 PM EST Reads: 209
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 7, 2016 02:15 PM EST Reads: 1,107
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Dec. 7, 2016 02:15 PM EST Reads: 3,375
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 02:15 PM EST Reads: 947
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Dec. 7, 2016 02:15 PM EST Reads: 2,188
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 01:45 PM EST Reads: 1,103
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Dec. 7, 2016 01:30 PM EST Reads: 2,143
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Dec. 7, 2016 01:30 PM EST Reads: 392
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 01:24 PM EST Reads: 216
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
Dec. 7, 2016 12:45 PM EST Reads: 1,078
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
Dec. 7, 2016 12:35 PM EST Reads: 258
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 12:30 PM EST Reads: 619
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Dec. 7, 2016 12:30 PM EST Reads: 722