Puma acquires option for Williams Brook

Apr 8, 2020

2020-04-06 12:34 ET – News Release

Mr. Marcel Robillard reports

PUMA ACQUIRES LARGE GOLD PROPERTY YIELDING UP TO 50.8 G/T AU

Puma Exploration Inc. has signed an option agreement to acquire 100-per-cent interest in the Williams Brook gold property. This property covers 5,190 hectares and is located in northern New Brunswick, only 25 kilometres east of the company’s 100-per-cent-held Jonpol gold property.

There are known gold occurrences grading up to 50.8 grams per tonne gold, previously sampled in bedrock, within the property. There are also numerous gold soil anomalies and extremely anomalous till samples, with up to 508 gold grains, discovered over an area of approximately 12 km by three km. Drilling has been limited to a small area of approximately 1.4 km by 0.8 km and includes significant intersections that warrant follow-up drilling. Drill hole WB-08-04 intersected 28 metres grading 0.91 g/t Au within the rhyolite, which was altered from the collar to a depth of 60.7 m downhole. Grades in the altered rhyolite from WB-08-04 drill hole ranged up to 5.4 g/t Au over one m. Other significant drill results include hole WB-08-11 with 11.2 g/t Au over 2.8 m. In the same area, grab samples collected in trenches returned values of 3.5 g/t Au and 14 g/t Au. Also, floats grading 28 g/t Au and 40.5 g/t Au were found.

To date, the main focus of exploration was centred on an area of approximately two km by 1.5 km, an area that includes numerous gold occurrences as well as the initial discoveries from 2005. An induced polarization survey indicates that the alteration zones remain open to the south of the surveyed area. An IP survey carried out in 2012 identified anomalous chargeability that remains untested to the north of the earlier surveys. Moreover, a reconnaissance soil survey line, crossing the south end of this IP anomaly, returned a value of 63 parts per billion Au, possibly indicative of another alteration zone. Puma’s team is currently compiling the data to generate the exploration program to be conducted for the 2020 field season.

Two types of gold mineralization have been identified on the Williams Brook gold property. One type is associated with disseminated pyrite in salmon-pink altered rhyolite, with local breccia texture and quartz veinlets. This type of mineralization has been found in two broad subparallel northeast-trending zones, which have been interpreted using IP, soil geochemical surveys, trenching and diamond drilling to extend over a combined strike length in excess of two km. This type of zones is known to occur over horizontal widths exceeding 40 m. The highest gold grades have been found in quartz veins and heavily quartz-veined rhyolite that contain variable concentrations of disseminated and/or veinlets of pyrite. Gold-bearing quartz veins have returned up to 50.8 g/t Au. The gold-bearing quartz veins have been observed trending northwest, approximately perpendicular to the trend of the alteration zones.

Terms of the transaction

Puma may acquire a 100-per-cent undivided ownership interest in the property according to the following terms:

Issuing a cumulative amount of 500,000 shares of Puma and $100,000 cash payments to the owner, according to the following schedule:
- 200,000 shares subsequent to signing of the agreement;
- 75,000 shares and $10,000 cash on or before the first anniversary date of the agreement;
- 75,000 shares and $20,000 cash on or before the second anniversary date of the agreement;
- 75,000 shares and $30,000 cash on or before the third anniversary date of the agreement;
- 75,000 shares and $40,000 cash on or before the fourth anniversary date of the agreement;
Additional performance payments:
- Pay the owner $25,000 cash payment upon a positive preliminary economic assessment (PEA to be defined in the definitive agreement);
- Pay the owner $50,000 cash payment upon a positive feasibility study (FS to be defined in the definitive agreement);
- Pay the owner a one-time cash payment of $100,000 upon a commercial production (commercial production to be defined in the definitive agreement).

The owner will retain a 2-per-cent net smelter return royalty on any saleable production from the property. Fifty per cent of the NSR royalty (that is, 1 per cent) may be purchased by Puma for $1-million. Puma retains a right of first refusal on the remaining 1-per-cent NSR royalty that is held by the owner. The transaction is subject to the TSX Venture Exchange approval.

Qualified persons

Marcel Robillard, PGeo, qualified person as defined by Canadian National Instrument 43-101 standards, has reviewed and approved the geological information reported in this news release. Mr. Robillard is the president and chief executive officer of the company.

About Puma Exploration Inc.

Puma Exploration is a Canadian-based mineral-exploration company with precious and base metals projects in early to advanced stages located in the famous Bathurst mining camp in New Brunswick, Canada.

We seek Safe Harbor.

http://explorationpuma.com/en/