Nubian to sell Excelsior Springs to Athena Silver

Aug 31, 2020

2020-08-31 09:35 ET – News Release

Mr. Martin Walter reports

NUBIAN ENTERS AGREEMENT TO DIVEST EXCELSIOR SPRINGS EXPLORATION PROJECT, NEVADA, US

Nubian Resources Ltd. has entered into a binding letter of intent with Athena Silver Corp. for Athena to acquire the company’s Excelsior Springs exploration project located in Esmeralda County, Nev., United States. Nubian will retain a 1 per cent NSR on the property and Athena will have the right to purchase 0.5 per cent for $500,000 and the remaining 0.5 per cent at fair market value. The completion of the transaction is conditional upon the company obtaining the prior approval of the transaction from the TSX Venture Exchange and any other approvals required under applicable laws.

Under the terms of the LOI, Athena has paid a $10,000 (U.S.) deposit to Nubian for an exclusive 90-day due diligence period during which time Nubian and Athena have agreed to finalize definitive agreements with respect to the transaction, and Athena will make an application for listing on a Canadian stock exchange and will raise a minimum of $750,000 (U.S.). On closing, Athena will have a maximum of 75 million common shares outstanding and will issue Nubian 50 million common shares valued at five cents per share, representing an approximate 40-per-cent interest in Athena. Nubian has agreed to a hold period of six months from the date of issuance of the Athena consideration shares. The company intends to distribute all or a portion of the Athena consideration shares received by it to its shareholders following the closing of the transaction as a return of capital. Any such distribution of Athena shares would be subject to obtaining the prior approval of the company’s shareholders and any required approvals of the TSX-V.

Martin Walter, president and chief executive officer of Nubian, stated, “The divestment of the Excelsior Springs property to Athena is expected to unlock the value in the Excelsior Springs property for shareholders quicker given Nubian’s focus on its properties in Australia and Peru.”

The Excelsior Springs mining claims cover an area of 3.5-square-kilometres including the historic Buster mine, which has past production of about 15,000 tonnes at 37 grams per tonne (g/t) gold (Au) to a maximum depth of 70 metres. The property is located in the Walker-Lane tectonic zone of Southern Nevada, which hosts a number of large historic gold mines. Total gold production from the zone exceeded 20 million ounces (Moz), with notable deposits including Goldfield (five Moz), Bullfrog (two Moz), Tonopah (two Moz), Mineral Ridge (1.5 Moz) and Comstock (eight Moz Au, 200 Moz Ag). Nubian owns 100 per cent of the 140 unpatented claims at Excelsior Springs with two additional leased patented claims that are subject to a 2 per cent NSR on gold production. Exploration work in 2011 included 3,657 m of RC drilling with significant intercepts from that drilling program highlighted in the article:

GE08: 7.6 m at 5.1 g/t Au from 93.0 m
GE14: 7.6 m at 2.9 g/t Au from 19.8 m
GE02: 3.0 m at 4.7 g/t Au from 0 m
GE19: 6.1 m at 1.9 g/t Au from 117.3 m
GE15: 13.7 m at 0.8 g/t Au from 61.0 m

Gold mineralization discovered at Excelsior to date occurs in quartz vein stock-works and silicified zones in hornfels and calc-silicate altered country rock and generally close to porphyry dykes. The best mineralization (grade and thickness) is found in altered sediments immediately above porphyry dykes that have intruded along existing east and east-northeast trending faults. The mineralized stock-work vein zones are shallow and have a relatively flat plunge, making them amenable to open pit mining methods, if economic zones are outlined.

Exploration to date has focused on a 2.5 km long section in the central part of the zone where mineralization is at or near the surface. Surface mapping and an induced polarization (IP) geophysical survey identified multiple zones of silicification that correlate well with the known mineralization. Many of the silicified zones defined by the IP (resistivity highs) have not been tested by drilling and remain targets for future exploration, approximately four km of the zone is concealed beneath thin transported cover.

A National Instrument 43-101 technical report was filed by the company on the Excelsior Springs project in 2010.

Technical information in this news release has been reviewed and approved by Dr. Scott Jobin-Bevans (PGeo), a director of Nubian, who is a qualified person under the definitions established by the National Instrument 43-101.

About Nubian Resources Ltd.

Nubian Resources is a public-traded precious and base metals exploration company listed on the TSX-V. The company is managed by a team of experienced mining and geological professionals. In May 2020, Nubian entered into an agreement to acquire and develop the Yandoit gold project in central Victoria, Australia, and in July, 2020, Nubian entered into an agreement to acquire Stavely Mineral Ltd.’s Fosterville East project and its Lefroy and Matthina projects in Tasmania.

We seek Safe Harbor.

https://www.nubianr.com/