Execution of Right of First Refusal on Manicouagan Nickel-Copper-PGE Project
Montreal - TheNewswire - January 27, 2020 - St-Georges Eco-Mining Corp. (CNSX:SX.CN) (OTC:SXOOF) (FSE:85G1) is pleased to announce that it has entered in an agreement to acquire 100% of the Manicouagan Nickel-Copper-PGE project located 165km north of its 100% owned Julie Nickel-PGE Project on the Quebec North Shore.
The project is located approximately 350 km northwest of the city of Baie-Comeau on the North Shore of the St-Lawrence River. The Manicouagan Project presently consists of a total of 115 contiguous claims (79 already issued, 36 still pending/in demands) covering an area of approximately 6 070 ha or 61 km2.
The project was the subject of a three (3) phases of exploration programs after its discovery by the current vendors. A Canadian public company performed initial surface work followed by a 4,327 kilometers airborne geophysical survey, 135.6 kilometers of Horizontal Loop Electromagnetic ('HLEM") and 151.8 kilometers of ground magnetic surveys, as well as prospecting, geological mapping, soil geochemical sampling and two diamond drilling programs consisting of 34 drill holes for a total of 2 957 m in 2007 and 10 holes for a total of 1,770 m in 2008.
This historic work program successfully identified significant intercepts of nickel, copper and platinum group elements (PGEs) mineralization. Best values are concentrated in three areas (Bob and Bob-East, Feu/Derniere Chance and Mountain-Front) with narrow and stacked mineralized zones intimately associated with ultramafic flows or sills. Historic work programs identified many additional conductors (geophysical targets) within the claim block that were only minimally tested or remaining untested and to be followed-up.
The primary exploration target on the Manicouagan Project will be focused in extending and delineating new mineralized zones for platinum group metals (platinum-Pt, palladium-Pd, rhodium-Rh and ruthenium-Ru) enriched nickel, copper magmatic sulphide deposits. But the project may also have the potential to host volcanogenic massive sulphide, lode gold mineralization and/or epigenetic Cu-Ag (Au-Zn) mineralization. While conducting the above exploration for higher grades, the company will conduct new geophysical surveys, detailed geological mapping and geochemical sampling to explore for a larger potential source. The company believes that this project is a complementary asset to the ongoing work at the Julie project.
Manicouagan Project's Mineralization
Bob and Bob-East showings :
Grab samples taken from blasted outcrops assayed :
- up to 2.68% Nickel, 6.99% Copper and 16.62 g/t Palladium+Platinum (4.12 g/t Pt + 12.50 g/t Pd) at Bob Showing;
- up to 2.34% Ni, 0.49% Cu and 6.87 g/t Pd+Pt (5.28 g/t Pt + 1.59 g/t Pd) at Bob-East Showing;
Channel samples assayed :
- up to 2.44% Ni, 0.74% Cu and 17.03 g/t Pd+Pt (3.28 g/t Pt + 13.75 g/t Pd) over 1.94 meters (channel sample Bob-13) at Bob Showing;
- up to 2.98% Ni, 0.18% Cu and 8.86 g/t. Pd+Pt (3.04 g/t Pt + 5.82 g/t Pd) over 1.67 meters (channel sample Bob East-8) at Bob-East Showing;
Drilling programs at the Bob and Bob East Showings were successful in delineating the known Ni-Cu-PGE mineralization from surface for approximately 200 meters along strike and to a depth of about 90 meters. The mineralization remains partially open in all directions. Drill intercepts from the 2007 and 2008 drillings included:
- hole MCH-08-02 : 0.89% Ni, 0.28% Cu, 0.96 g/t Pt and 1.64 g/t Pd over 6.47 m; including 1.00% Ni, 0.36% Cu, 1.80 g/t Pt and 2.31 g/t Pd over 2.11 m;
- hole MCH-07-17 : 1.78% Ni, 0.49% Cu, 2.11 g/t Pt and 6.47 g/t Pd over 2.04 m.
Selected drill core samples from the Bob Ni-Cu-PGE Prospect that were analyzed for the complete suite of Platinum Group Elements (PGE) returned significant concentrations of rhodium (Rh) and ruthenium (Ru) in addition to the significant results :
- Sample 263662 (DDH MCH-08-04) assayed 1.73 g/t Rhodium and 2.63 g/t Ruthenium.
Feu and Derniere Chance Showings :
Drilling at the Feu and Derniere Chance showing was successful in extending the known surface Ni-Cu-PGE mineralization to a depth of approximately 40 m.
- At Derniere Chance, a consolidated grab sample assayed 0.78% Ni, 11.7% Cu and 2.54 g/t Pd+Pt (0.30 g/t Pt+ 2.24 g/t Pd);
- Grab samples assayed from the Feu showing included 1.15% Ni, 2.15% Cu and 2.73 Pd+Pt (0.67 g/t Pt + 2.06 g/t Pd);
The best channel sample assay returned :
- 3.21% Ni, 2.33% Cu and 29.60 g/t Pd+Pt (3.7 g/t Pt + 25.90 g/t Pd) over 0.5 m;
Assay results from the two holes drilled beneath the Derniere Chance Showing returned :
- 0.90% Ni, 850 ppm Cu, 0.85 g/t Pd+Pt (0.10 g/t Pt + 0.75 g/t Pd) and 810 ppm cobalt ("Co") over 0.21 m (MCH-07-09);
- 1.04% Ni, 0.47% Cu and 0.84 g/t Pd+Pt (0.20 g/t Pt + 0.64 g/t Pd) over 0.21 m (MCH-07-10).
The mineralization remains open along strike and at depth.
A new occurrence of Ni-Cu-PGE mineralization was intersected in MCH-07-20 and 21 located about 600 m west of Derniere Chance and Feu, and may represent the long-strike extension of Derniere Chance and Feu Showings. .
The best intercept from the 2007 drilling was from hole MCH-07-20 which intersected 0.76 m grading 0.41% Ni, 0.16% Cu, 0.11 g/t Pt and 0.87 g/t Pd.
All these results were compiled in a technical work report filed by Manicouagan Minerals in March 2009.
Additional exploration work was conducted by the vendors and additional targets were identified. The results obtained from these historic and subsequent campaigns are not compliant under the National Instrument 43-101 regulations and are strictly used to generate additional exploration targets by St-Georges.
Although many of these results are interesting in relation with today's pricing of some of these commodities, the project does not have any NI 43-101 resources and there is not yet any indication that a significant resource is already or will be existing on the project.
St-Georges has since inception a right of first refusal on the rights, option of all Nickel & PGEs project owned or controlled by Frank Dumas, it's Trust or affiliated companies. This project was co-owned by Exploration J.F. Inc and Frank Dumas. The board of SX has chosen to acquire this project as it is in line with the commodities sought by the company and provides synergies with Julie Nickel-PGE Project located within the Manicouagan trend.
At signing, St-Georges will issue 5 million shares to the vendors. A 2 years escrow period with timed release will be impose on vendor Exploration JF Inc as described below:
500,000 shares released in 4 months and one day;
500,000 shares released at the anniversary date of this agreement;
500,000 shares released in 18 months;
500,000 shares released in 24 months;
All three million shares issued to Frank Dumas, St-Georges' COO, will be under a complete escrow for 60 months from issuance;
$50,000 will be paid in two installments to Exploration JF Inc., $25,000 at signing and $25,000 at the anniversary date of the agreement;
A 2% NSR will be granted to the vendors as well as a zone of influence covering the 2 NTS Sheets where the project is located.
Related Party Disclosure
A portion of the Manicouagan Nickel-Copper-PGE Acquisition, is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Corporation is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Corporation is exempt from the formal valuation requirement in section 5.4 of MI 61-101 in reliance on sections 5.5(a) and (b) of MI 61-101 as the fair market value of each transaction is not more than the 25% of the Corporation's market capitalization, and no securities of the Corporation are listed or quoted for trading on prescribed stock exchanges or stock markets. Additionally, the Corporation is exempt from minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on section 5.7(b) as the fair market value of each transaction is not more than the 25% of the Corporation's market capitalization. The board of directors of the Corporation approved the Manicouagan Project acquisition, with Frank Dumas having declared a conflict of interest in, and abstaining from voting on, the matters being considered.
Alain Berclaz, P.Geo a consultant to the Company and a Qualified Person under the definition of Canadian National Instrument 43-101, approved the technical information in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
St-Georges is developing new technologies to solve the some of the most common environmental problems in the mining industry.
The Company controls directly or indirectly, through rights of first refusal, all the active mineral tenures in Iceland. It also explores for nickel on the Julie Nickel Project & for industrial minerals on Quebec's North Shore and for lithium and rare metals in Northern Quebec and in the Abitibi region. Headquartered in Montreal, St-Georges' stock is listed on the CSE under the symbol SX, on the US OTC under the Symbol SXOOF and on the Frankfurt Stock Exchange under the symbol 85G1
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.