War Eagle closes acquisition of Deloye claims

Jul 20, 2018

2018-07-19 07:53 ET – News Release

Ms. Daniele Spethmann reports

WAR EAGLE ADDS 122 HECTARES TO THE EXISTING KIRANA GOODFISH PROPERTY, KIRKLAND LAKE

War Eagle Mining Company Inc. has completed the purchase of the Deloye family claims located in the northeast corner of Teck and the northwest corner of Lebel townships, Ontario, 3.1 kilometres north of the Kirkland main break.

The Deloye claims land package consists of eight patented mining claims, a total of 122 hectares, with mineral rights on all eight claims and surface rights on four of the eight, bringing the current Goodfish Kirana land package to 3,418 hectares from 3,296 hectares. These claims contain the old shafts and trenches of the historical Kirana Kirkland Lake gold mine, “Kirana Kirkland mine,” which stopped production in 1936. The reported historical grades for the Kirana Kirkland mine from the Ontario Department of Mines Vol. 1 LVII include “narrow high-grade streaks of $20 to $150 per ton in gold.” The 2018 estimated equivalent is between 30 grams per tonne of gold and 145 g/t of gold.

Under the terms of the acquisition, War Eagle has agreed to:

Pay to Diane Deloye, the sum of $155,000 upon the closing of the transaction; the company also agrees to pay all reasonable legal fees;
Grant to Ms. Deloye a 1.5-per-cent royalty based on net smelter returns (NSR) on all mineral products produced from the claims; the company shall have the right to buy down or buy back 1 per cent of the NSR for $1-million as per terms of the NSR agreement.

Daniele Spethmann, president and chief executive officer of War Eagle, stated: “We are very pleased to have come to an agreement with the Deloye family on the acquisition of these claims. It is expected that the historic Kirana Kirkland mine, located within the newly acquired Deloye claims, will be a rewarding exploration endeavour for War Eagle. The mine’s historic shafts are located close to the intersection between the two major mineralized structures on our property, the Kirana deformation zone and the Goodfish deformation zone. Exploration on a small part of this land package was completed in the late 1980s and the rest of the claims have not been efficiently explored to any depth for more than 30 years. We look forward to exploring this prospective ground and anticipate that it will generate positive results for War Eagle.”

History of the Deloye claims

The patented claims and the surface rights have been owned by the Deloye family since the 1970s.

The historical records from the Ontario Department of Mines report that up to 1917, La Belle Kirkland Mines Ltd. developed six shafts and trenches. Shaft No. 1 on claim L1751 was the most developed with an inclined shaft to a depth of 300 feet. This shaft was subsequently deepened to 360 feet, with 1,150 feet of lateral work undertaken at the 100-foot and 250-foot levels. In 1933, Kirana Kirkland Gold Mines Ltd. reported that it had conducted dewatering and chip sampling of shaft and underground levels and also some surface muck samples were taken and assays begun but not completed. The mine was subsequently closed at the outbreak of the Second World War.

Between 1988 and 1990, Minnova Inc. drilled seven widely spaced drill holes (KIR 1 to 7, totalling 1,637.5 m) and completed ground geophysics and soil geochemisty. Drill hole KIR-3 located north of shaft No. 1 (claim L1751) reported an assay of 21 g/t over 0.3 m near surface. No further exploration work has been undertaken on any of the claims since.

About War Eagle Mining Company Inc.

War Eagle is a TSX Venture Exchange-listed company focused on the exploration of mineral resource properties in Northern Ontario, Canada, with a focus on gold deposits. The company’s Goodfish Kirana project is a 10 km long by three km wide land package with numerous historical gold showings and significant structural breaks that has been underexplored with modern technology, providing an exciting and unique discovery opportunity. The Goodfish Kirana project is located within the significant land position held by the company located in the Kirkland Lake gold camp five kilometres from the centre of the town of Kirkland Lake, Ont., Canada.

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