QMC Quantum Minerals Corp.

QMC Quantum Minerals Corp.

February 27, 2012 09:30 ET

QMC Quantum to Acquire 100% Interest in Mugaha Gold Property, Mackenzie, British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2012) - QMC Quantum Minerals Corp. (TSX VENTURE:QMC) ("QMC" or the "Company") is pleased to announce that it has entered into an option agreement with Mackenzie Minerals Ltd., whereby it has the exclusive right to acquire an undivided 100% right, title and interest in the Mugaha Property (the 'Property') in Mackenzie, British Columbia.

The Mugaha property consists of 12 MTO claims aggregating 5,502 hectares and is located 15 km north of the town of Mackenzie, and roughly 160 km by road north of the city of Prince George, B.C. Access and infrastructure are good with the western part of the property being road accessible. The town of Mackenzie has most services including an airport and contract helicopter services. The property is heavily forested except for a few logged areas. Topography is moderate and exploration work can be carried out between May and October.

Gold mineralization was discovered on the property in 2006 after several years of extensive exploration. Outcrop is sparse and mineralization was exposed in outcrop only by hand trenching of gold-in-soil anomalies.

The property is underlain by weakly metamorphosed and complexly deformed rocks of the Upper Proterozoic Misinchinka Group. The Misinchinka Group consists of a thick monotonous sequence of siliciclastic and lesser carbonate rocks of turbidite affinity deposited on the western margin of ancestral North America.

During the years 2003 to 2006, extensive geochemical surveys outlined a number of gold-in-soil anomalies southeast of Mugaha Creek in an area of extensive vegetation and overburden cover. One of these anomalies was investigated by hand trenching and outlined a number of narrow, mineralized quartz veins in sheared and faulted slate and siltstone. At least 3 to 5 veins were outlined and could be traced intermittently for about 120 meters along strike and remain open in both directions. Gold values are highly erratic and metallic screening analyses indicate that a significant amount of the values occur as free gold. Mineralized veins are generally sheared and highly fractured and contain sporadic pyrite and base metal sulfides. Eight of 13 trenches cut mineralized quartz veins and values ranged from less that 1 g/t gold over 1.0 meter to a maximum of 139.1 g/t gold over 1.0 meter. Thirteen separate sample intervals contained values of greater than one g/t over one meter. Trench 5 contained a total of 5 separate mineralized veins averaging 1 meter wide over a total width of 15 meters.

The characteristics of the Mugaha property mineralization are interpreted to be consistent with the sediment hosted vein gold deposit model. Mineral deposits of this type contain some of the largest concentrations of gold worldwide; e.g. Muruntau, Uzbekistan - 80 million oz; Sukhoy Log, Russia - 20 million oz.; Bendigo-Ballarat district, Australia - 20 million oz; Macraes Flat, Otago Schist Belt, New Zealand - 5.2 million oz.

At the Mugaha property, only one of approximately 25 gold-in-soil anomalies within an area measuring 5 km by 3 km has been partially explored by trenching. There is, therefore, excellent potential for the discovery of similar gold mineralization.

The Company intends to pursue an extensive program of trenching and drilling in the 2012 field season to fully test the property's potential.

The Company is required to make the following payments under the option agreement:

  • On singing of the letter of intent $19,000 (paid)
  • One year from the effective date $100,000 cash and 200,000 shares
  • Two years from the effective date $100,000 cash and 200,00 shares
  • Three years from the effective date $200,000 cash and 300,000 shares
  • Four years from the effective date $200,000 cash and 300,000 shares
  • subject to a 2% NSR of which the Company has the right to purchase one half for $1,000,000 at any time within a five year period commencing on the later of the exercise of the option in the Agreement and the date a bankable feasibility study is prepared and delivered to the Company. The Company has the right to accelerate the payments to reduce the time it will take to earn the 100% interest in the Property

The technical content of this news release has been reviewed and approved by James M. Dawson, P. Eng, who is a qualified person as defined by National Instrument 43-101.

The Company is a British Columbia-based company engaged in the business of acquisition, exploration and development of mineral properties in Canada. Its objective is to locate and develop economic precious, base metals and REE properties of merit.

On behalf of the Board of Directors of QMC QUANTUM MINERALS CORP.

Balraj Mann, President and Chief Executive Officer

This press release contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performances or achievements of the Company to be materially different from the results, performances or expectations implied by these forward looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.

Contact Information

  • QMC Quantum Minerals Corp.
    Balraj Mann
    President and Chief Executive Officer
    604 601-2018