Leocor signs option deals to acquire three projects

Apr 11, 2021

2021-04-08 11:44 ET – News Release

Mr. Alex Klenman reports

LEOCOR GOLD SIGNS DEFINITIVE AGREEMENT TO ACQUIRE DISTRICT SCALE EXPLORATION PROJECTS IN NEWFOUNDLAND

Leocor Gold Inc. has entered into three option agreements, each dated March 23, 2021, with Shawn Ryan and Wildwood Exploration Inc., pursuant to which Leocor has the options to acquire a 100-per-cent interest in 5,760 mineral claims, covered by 37 licences over 144,000 hectares in Newfoundland and Labrador.

The three projects acquired — Hodge’s Hill, Leamington and Robert’s Arm — represent 1,440 square kilometres of prospective exploration ground covering numerous regional geologically favourable corridors conducive to gold mineralization. The project vendor, Mr. Ryan, will be joining Leocor as a technical adviser, specifically to plan and oversee exploration efforts on the newly acquired ground.

Project details

Hodge’s Hill — 39,050 hectares

Hodge’s contains major regional northeast and north-northwest structures outlined by the regional NFLD airborne magnetics. This package presents a unique opportunity to evaluate the Hodges Hill gabbro. Gabbros have long been recognized as being directly associated with gold mineralization in the Baie Verte area such as Anaconda Mines Pine Cove deposit and more recently the discovery (2014) by Anaconda Mining of the Stog’er Tight and Argyle showings. Recent research conducted by the Geological Survey of Canada (open file 8,658) specifically indicates how the brittle nature of the gabbro-tonalite-granodiorite body (Crippleback intrusive suite) that underlies the Wildling Lake showing and Marathon’s Valentine Lake gold project (3.9 million ounces), and which Hodge’s Hill is associated with, makes a highly prospective target for gold deposition.

Leamington — 62,300 hectares

Leamington targets an area measuring 30 kilometres east-west by 36 kilometres north-south that hosts the prospective rocks of the Exploits terrane, which the Newfoundland government regional till survey showed was anomalous in gold and arsenic. The target also has close to 100 km of various regional structures running through it, with approximately 50 to 60 square kilometres of prospective gabbros.

The claim block’s northern boundary straddles 20 km of the Red Indian Line (RIL) suture zone, which is the main deep structural contact between the Laurentia and Gander terrane boundaries. The project is also flanked along the eastern side (30 km) by the Northern Arm fault, which is the same fault system that the Valentine Lake project straddles.

Robert’s Arm — 42,650 hectares

Robert’s Arm covers mainly mafic to siliciclastic marine volcanic rocks of late Cambrian to Middle Ordovician age, known as the Wild Bight group. Running through the Wild Bight unit is a distinct magnetic high gabbro sill unit known as the Gummy Brook gabbro. It is this unit that is related to the known gold mineralization in the area. The main highlight is that the property is straddling 38 km of the RIL suture zone and that it also has numerous linear magnetic high anomalies interpreted to be untested gabbro units.

“These projects represent a district-scale exploration opportunity for Leocor,” said Alex Klenman, chief executive officer. “This project ground has had limited exploration to date, and we feel the geology, location, historical and recent results all indicate this is a highly prospective, prime target for an aggressive, large-scale gold exploration program. We are also pleased to have Shawn join the team as an adviser. He will be instrumental in planning and executing the progressive exploration programs to come,” continued Mr. Klenman.

Mr. Ryan began his career in exploration in the early 80s working with the Kidd Creek Exploration geophysics team and various other local contracting firms. In 1996, while living in Dawson City, Yukon, he decided to try his luck as a prospector. He focused his prospecting in the Dawson district looking for the sources of alluvial gold. His research led to perfecting a deeper soil sampling technique that became a Yukon industry standard. Mr. Ryan received the Spud Huestis Award for excellence in prospecting and mineral exploration from AME BC in 2010 for the White gold discovery. In 2011, Mr. Ryan was also honoured with the Bill Dennis Prospector of the Year Award by the PDAC for his prospecting success that led to the discovery on the White gold property and the Coffee projects, now owned by Newmont.

“I am pleased to work with Leocor and their management team. The three options were staked to cover key structures, prospective geology and anomalous gold in till,” said Mr. Ryan, technical adviser. “Newfoundland is getting ready to go through one the most aggressive gold exploration phases since the 1988 to 89 rush where more than 80 per cent of the known gold showings were discovered. Since then, our understanding of gold systems has increased dramatically and the Newfoundland Geological Survey has done an exemplary job with their work by providing modern up-to-date geology maps, new till surveys, new airborne surveys and new regional structural interpretation. With the compilation and interpretation of new data, Leocor will be the first company to directly target some of these key structures. I look forward to planning this summer exploration program with the Leocor team,” continued Mr. Ryan.

Option terms

In order to exercise the option granted under the Hodge’s Hill agreement, Leocor must make cash payments to the optionor of $502,000 and issue three million common shares of the company over five years. Initial payments upon exchange approval of the agreement are $102,000 cash and 500,000 common shares. Leocor must also incur expenditures of at least $2,725,000 by Nov. 15, 2025.

In order to exercise the option granted under the Leamington agreement, Leocor must make cash payments to the optionor of $562,000 and issue four million common shares over five years. Initial payments upon exchange approval of the agreement are $162,000 cash and one million common shares. Leocor must also incur expenditures of at least $3,625,000 by Nov. 15, 2025.

In order to exercise the option granted under the Robert’s Arm agreement, Leocor must make cash payments to the optionor of $511,000 and issue four million common shares over five years. Initial payments upon exchange approval of the agreement are $111,000 cash and one million common shares. Leocor must also incur expenditures of at least $3-million by Nov. 15, 2025.

Upon exercise of each option in accordance with the applicable option agreement, the optionor will retain a 2.5-per-cent net smelter return royalty, provided that Leocor will have the right to purchase from the optionor that portion of the NSR royalty equal to 1 per cent of such NSR royalty upon payment of the sum of $2.5-million to the optionor at any time.

About Leocor Gold Inc.

Leocor Gold is a British Columbia-based resource company involved in the acquisition and exploration of precious metal projects, with a current focus in Atlantic Canada. Leocor is a reporting issuer in British Columbia, Alberta and Ontario. Leocor, through outright ownership and earn-in agreements, currently controls over 1,600 hectares of prime exploration ground in the prolific Baie Verte mining district, proximal to known deposits and currently producing mines, including Anaconda Mining’s Pine Cove mine and Stogertite deposit, and Rambler Metals’ Ming mine.

We seek Safe Harbor.

https://leocorgold.com/