Synergy Acquisition Corp.

Synergy Acquisition Corp.

January 09, 2014 13:00 ET

Synergy Grants a Mandate For Seven NI 43-101 Reports

MONTREAL, QUEBEC--(Marketwired - Jan. 9, 2014) - Synergy Acquisition Corp. (the "Corporation") (CSE:QMP) is pleased to announce that Solumines has been retained to prepare NI 43-101 technical reports for seven of its newly-acquired properties.

Preparation of the reports has already started for these seven properties, which are wholly-owned by the Corporation. The NI 43-101 reports will be prepared in parallel in January and February. These reports are needed to obtain the work recommendations for each of the properties.

Property Summaries:

Port-Daniel Property

Clemville-West, Clemville-East and Colline Daniel deposits

The Port-Daniel property is located in the Gaspé region in eastern Quebec, Canada, a few kilometres from Port Daniel, in the Rocher-Percé RMC.

The property consists of 35 mineral claims covering a total area of 2,005.4 hectares, and hosts three assessed limestone deposits: Clemville West, Clemville East and Colline Daniel.

The property overlies Silurian to Devonian age sedimentary sequences belonging to the Baie-des-Chaleurs Synclinorium of the Appalachian geological province. These folded sequences included the La Vieille formation, which contains a thick median member of reef origin characterized by high calcium carbonate grades of 92-95% CaCO3.

The MERQ conducted work on the property between 1976 and 1979, including geological mapping, exploration drilling and sampling (ET 83-12) leading to calculations of historical resources for each of the three limestone deposits on the property:

  • Clemville-West: 73.79 Mt @ 92.95% CaCO3
  • Clemville-East: 112 Mt @ 90-95% CaCO3 - not drilled (visual estimate based on the grades obtained on Clemville-West)
  • Colline Daniel: 95.15 Mt @ 92.79% CaCO3

These resources are historical in nature and do not meet resource characterization standards as defined in NI 43-101. In addition to these non-43-101 resources, the MERQ report mentions extensions with similar grades.

These three deposits (Clemville-East, Clemville-West and Colline Daniel) are interesting for several reasons, including their thin layer of overburden and high quality of limestone near the road and railway line.

The historical results clearly indicate development potential for the limestone resource of these deposits.

Lac Ruby Property

The Lac Ruby zinc property is located in the Hudson Bay region of Quebec, about 25 kilometres southwest of Lac Guillaume-Delisle and in the east-central part of NTS sheet 33N/15. The property consists of 40 contiguous mineral claims covering a total area of ΓÇïΓÇï1,932 hectares.

This region is part of the Superior geological province and more specifically the southwest segment of the Minto subprovince. The property lies on bedrock primarily composed of volcano-sedimentary formations, dolomite, sandstone and basalt of the Nastakopa Group.

Exploration work undertaken in the late 1940s and early 1950s led to the discovery of a Mississippi Valley-type Pb-Zn-Ag deposit. Drilling was subsequently carried out on this occurrence, leading to the definition of resources (not NI 43-101-compliant) estimated at 578,690 t at 1.26 % Zn Pb and 1.07% Pb, according to the Quebec government deposit sheet (Source: MRNF - SIGEOM database).

Torngat Diamond Property

The Torngat Diamond property is in Northern Quebec, on the eastern short of Ungava Bay and the north side of the Ablovak Fjord. Located in the northeast corner of NTS sheet 24P06, the property consists of a block of 52 mineral claims covering a total of 2,175 hectares.

The property is located in the Torngat Orogen subprovince of the Churchill geological province. The Quebec government did regional geological mapping from 1991 to 1994, and Twin Gold Corp. carried out exploration work on the property from 1999 to 2001. Surveying led to the discovery of diamond-bearing kimberlite dykes called Torngat 1 and Torngat 2/3.

The Torngat 2/3 occurrence consists of two dykes from 0.6 to 1.0 m thick, which can be traced over a distance of 1.5 km. The first 10.86 kg sample returned 26 diamonds, including four macro-diamonds. In 1999, Twin Gold Corp. extracted a 26.94 kg sample from the two dykes, which returned 16 diamonds, including three macro-diamonds.

The Torngat 1 occurrence consists of a 2.5 m wide dyke outlined by magnetic surveys over a distance of 22 km. In 1999, Twin Gold Corp. took a of 109.8 kg sample that returned 214 diamonds, including 44 macro-diamonds. A second, 212 kg sample returned 112 diamonds, including 13 macro diamonds. Most diamonds from the Torngat 1 dyke are white to transparent and high quality (Source: MRNF - SIGEOM database).

Versant REE Property

The Versant REE property is located in the Quebec's North Shore region, approximately 150 km north-northeast of the municipality of Havre-Saint-Pierre as the crow flies, in the northeast corner of the NTS sheet 12M07. The property consists of four mineral claims covering a total area of ΓÇïΓÇï214.5 hectares.

This area lies between the Buit complex and the Galissonnière felsic suite, in the eastern part of the Grenville geological province.

The property hosts a rare earth showing discovered in 2007 during a uranium exploration program conducted by Ariane Resources and Azimut Exploration. The showing is a vein-type occurrence and lies within a pegmatite dyke encased in syenogranite. Grab samples returned rare earth grades of >10,000 ppm La, 8,790 ppm Nd, >1,000 ppm Pr, >1,000 Sm, >10,000 ppm Ce and 989 Gd (Source: MRNF - SIGEOM database).

Lullwitz-Kaeppeli Property

The Lullwitz-Kaeppeli property is in the Charlevoix region of Quebec, about 30 km due north of the town of La Malbaie. The property is in the southwest corner of NTS sheet 21M16, straddling the border between Lacoste and De Sales townships.

The property consists of four mineral claims totalling 231.4 hectares. From a geological perspective, the property lies in Grenville Province and covers part of the Charlevoix charnockitic complex.

In 1961, the Lullwitz-Kaeppeli Mineral Exploration Partnership conducted exploration that led to the discovery of the deposit of the same name. At the time, the Lullwitz-Kaeppelli deposit was assessed at 96,154 short tons with a combined gold, iridium and gallium grade of $65.46/ton. Given a 1961 gold price of $35.25/ounce, this equates to a gold grade of 1.85 oz/ton. Note that these resources are historical in nature; they have not been verified and do not comply with NI 43-101 (Source: MRNF - SIGEOM database).

Sapeena Property

The Sapeena property is located in northern Quebec, approximately 95 km south-southwest of the village of Kuujjuaq. The property is located in the southeastern part of NTS sheet 24F06. The property consists of 28 mineral claims totaling 1,302.85 hectares.

Geologically speaking, the property lies in the Montagnais 2 gabbro sill, part of the Labrador Trough, which is itself part of the Churchill geological province.

A series of mineralized showings was discovered during geological reconnaissance conducted by Virginia Gold Mines and Placer Dome in 2001 and 2009 and by Everton Resources in 2009. The best results of grab samples collected by these companies at the sites of the mineralized showings, all located on the Synergy's claims, returned the following grades:

Canyon: 0.84% Cu
DJ: 2.95 g/t Au and 0.12% Cu
J-L: 1.96% Cu, 0.12% Ni and 96 ppb Pd
Sapeena: 6.76% Cu and 8.7 g/t Ag
Sapeena gabbro: 0.58% Cu, 0.56% Ni, 264 ppb Pd and 2.07% Cu
Detour: 1.55 g/t Au, 0.82% Cu and 0.01% Ni
(Source: MRNF - SIGEOM database)

Kontiki Property

The Kontiki property is located in the Charlevoix region of Quebec, in the southwest corner of NTS sheet 22C04. It straddles the border between Saguenay and Sagard townships, about 22 km north-northwest of the village of St-Simeon.

The property consists of six mineral claims totaling 345.39 hectares. The property is part of the Grenville geological province and covers part of the Moulin à Baude formation (basalt, andesite, amphibolite) and the Port aux Quilles formation (paragneiss, marble, quartzite, iron formations).

The property hosts the Kontiki muscovite mineralized showing, discovered by Kontiki Lead and Zinc in the early 1970s. The muscovite occurs as clusters in pegmatites and in schistose gneiss. The estimated tonnages mentioned in reports and press releases of the time refer to 2.35 MT to 10 MT at a grade of 15-20% muscovite. The BRM did processing and recovery tests in 1976. A 10% muscovite recovery was obtained for the best two of five batches from the Kontiki pegmatites.

No qualified person has done the work required to categorize past estimates in terms of current mineral resources or mineral reserves. Consequently, the Corporation does not consider the resources resulting from earlier estimates as current mineral resources or mineral reserves.

Donald Théberge, Ing., M.B.A., and a qualified person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, has reviewed and approved the technical content of this press release.

About Synergy

Synergy is targeting Quebec's excellent mineral potential to discover new world-class deposits. Synergy is the ideal partner for exploration companies and capital pool companies looking for qualified transaction projects of merit. Synergy intends to enter into various types of agreements on its properties. Management is currently evaluating other growth opportunities in its portfolio of newly acquired mineral properties to enhance shareholder value in the short term.

This press release contains certain forward-looking statements that involve a number of risks and uncertainties, and there can be no assurance that such statements will prove accurate. As a result, actual results and future events could differ materially from those anticipated in such statements. These risks and uncertainties are described in the annual report and in the filings made by the Company with securities regulatory authorities.

The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release.

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