VANCOUVER, BC--(Marketwired - March 16, 2017) - Logan Resources Ltd. (TSX VENTURE: LGR) ("Logan" or the "Company") is pleased to announce that it has signed a Mining Lease and Purchase Option Agreement ("Angel Wing Agreement") pursuant to which Logan will acquire a lease over certain unpatented mining claims located in Elko County, Nevada known as the Angel Wing Property. This transaction will effectively consolidate the greater part of the Viper District in northeastern Nevada, USA. With the addition of the Angel Wing Property, the size of the consolidated Viper Project is 1,756.6 hectares.
This transaction will form part of the Option Agreement with Pilot Gold Inc. ("Pilot") that Logan entered into, pursuant to which it may acquire up to an 80% interest in up to four of nine gold mineral exploration properties located in Nevada and Utah, USA (see news release dated July 7, 2016). One of the nine Pilot Gold properties, the Viper Project, consists of 40 unpatented mining claims on public lands under BLM jurisdiction, together with additional third party ground. The Angel Wing Agreement brings an additional 87 adjacent and interlocking claims into the project area, effectively merging the two focus areas of historic work. This will allow exploration of the entire four-kilometer strike length of the main mineralized trend. To see the consolidated land status of the Viper Project, please click here.
As a part of the Angel Wing Agreement, Logan has also been granted access to the historic work completed on the Angel Wing Property. An extensive database exists, including results of rock chip sampling, soil sampling, geophysical surveys, hyperspectral and isotopic studies. Over 6,700 meters of drilling has been confirmed at this time, with additional historic drilling under review. Past exploration carried out on the Viper Project by Pilot Gold includes geologic mapping, geophysical surveys, soil sampling, rock chip sampling, and over 3,350 meters of drilling. Exploration by Pilot Gold on the Viper Project claim block returned surface rock samples to 11.8 g/t Au, and significant drill intercepts. The Logan team is currently reviewing this information and performing QA/QC checks and will report results in a future news release.
Logan's CEO & Director, Mark Morabito, commented, "The consolidation of the adjacent Angel Wing claims will provide important access to a greater continuity of land that has significant expansion and development potential. Based on the geology and historic work, further exploration of the Viper Project is warranted. Additional work will include focusing on assembling a comprehensive, 3D district scale model, designed to better define the main feeder structures. Logan anticipates this program of work will be successful in generating future drill targets."
Viper is an early-stage, low-sulfidation epithermal gold target, located in northeastern Nevada. The nearest community is the town of Montello, located approximately 60 kilometers to the southwest. The Viper property is unique in that mineralization is hosted by Permian/Triassic silty limestone and silicified conglomerate which are overlain by unmineralized Miocene rhyolite and dacite. The gold system is believed to be coeval with the felsic volcanic rocks, and similar in age and character to the nearby Jarbidge district. Gold mineralization at the Viper property is closely related to the presence of quartz-calcite veins and vein stockworks. Individual veins exhibit exceptional bladed and lattice epithermal textures, and free gold is visible in a number of outcrops.
Details of the Angel Wing Agreement
- All dollar amounts listed below are in United States dollars.
- Logan, through its wholly-owned subsidiary Logan Resources USA, Inc., has been granted a lease over the Angel Wing Property and all rights to the use of the surface and subsurface of the Angel Wing Property held by the current owner. The lease is for an initial term of 20-years.
- Logan has also been granted the option to purchase the Angel Wing Property outright for a purchase price of US$500,000. Subject to certain conditions, up to 50% of the purchase price may be paid in common shares of Logan.
- The vendor has been granted a Net Smelter Return Royalty (the "Royalty") over the claims at a rate of 2.0%. The Royalty has a buy-down provision pursuant to which the Royalty may be reduced to 1.0% in return for a payment of $1 million.
- Minimum Royalty annual payments are required as follows:
||Annual Minimum Royalty Payment
|First Anniversary Date
|Second Anniversary Date
|Third Anniversary Date
|Each Anniversary Date thereafter
| || |
The technical information within this news release has been reviewed and approved by Dr. Craig S. Bow, Vice President Exploration for Logan. Dr. Bow is a Qualified Person as defined in NI 43-101. Dr. Bow has verified the data underlying the exploration results disclosed in this news release by reviewing the data archive for completeness and confirming the adequacy of the procedures related to sampling, sample preparation, sample security, as well as reviewing the qualifications of the laboratories providing the sample results and analytical procedures.
The Angel Wing Agreement is subject to the approval of the TSX Venture Exchange.
About Logan Resources Ltd.
Logan Resources Ltd. (TSX VENTURE: LGR) is a junior exploration company in the business of acquiring and advancing mineral properties. Logan's focus is on actively exploring nine gold properties in Nevada and Utah, USA that are under option from Pilot Gold Inc. Logan also has a 20% carried interest in the Gorilla Lake uranium property, and has a 100% interest in the Redford iron ore property on Vancouver Island, Canada. Redford is a former producing iron ore mine. For more information, please visit www.loganresources.ca.
Logan is part of the King & Bay West group of companies. King & Bay West is a merchant bank and management services company that specializes in identifying, funding, developing and managing growth opportunities in the resource and technology sectors. www.kingandbay.com
LOGAN RESOURCES LTD.
On behalf of the Board
Chief Executive Officer
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to (i) the exploration potential and prospective nature of the properties disclosed in this news release, (ii) the details of future exploration plans and potential results, (iii) potential gold mineralization on the properties; and (iv) the potential results of the drill program.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources, the realization of resource and reserve estimates, gold and other commodity prices, the timing and amount of future exploration and development expenditures, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Company's properties in the short and long-term and to acquire new properties, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access infrastructure, risks relating to changes in gold and other commodity prices and the worldwide demand for and supply of gold and related products, risks related to increased competition in the market for gold and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities on the Company's properties, or to acquire new properties, may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, environmental risks and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.