TomaGold’s partner IAMGOLD reports further high grade results at Monster Lake
Results include 72.17 g/t Au over 2.62 metres and 40.94 g/t Au over 5.32 metres
Montreal, Quebec, June 14, 2018 – TOMAGOLD CORPORATION (TSXV: LOT) (“TomaGold” or the “Corporation”) is pleased to report that IAMGOLD Corporation (“IAMGOLD”) today announced assay results from the 2018 winter drilling program completed at its Monster Lake joint venture project (currently held by IAMGOLD Corporation: 50%, TomaGold Corporation: 45%, and Quinto Resources Inc.: 5% on the Monster Lake claims block with IAMGOLD continuing to advance its option to earn in up to a 75% interest). The project is located 50 kilometres southwest of Chibougamau, Quebec, Canada. IAMGOLD is reporting the final assay results from all 26 drill holes, totaling 8,282 metres, completed as part of the initial 2018 program.
The assay results are provided in Table 1 below and include the following highlights:
(A drill hole plan map and longitudinal sections are attached to this news release)
325 – Megane Zone and Main Shear Zone:
- Drill hole ML18-212: 3.83 metres grading 23.96 g/t gold
- Includes: 1.30 metres grading 67.22 g/t gold
- Drill hole ML18-213: 3.84 metres grading 39.24 g/t gold
- Includes: 1.09 metres grading 127.4 g/t gold
- Drill hole ML18-217: 5.32 metres grading 40.94 g/t gold
- Includes: 0.70 metres grading 251.0 g/t gold
- Drill hole ML18-225: 2.62 metres grading 72.17 g/t gold
- Includes: 1.75 metres grading 107.3 g/t gold
Lower Shear Zone:
- Drill hole ML18-224: 4.32 metres grading 32.07 g/t gold
- Includes: 0.74 metre grading 134.0 g/t gold
- Drill hole ML16-176B Ext : 0.70 metres grading 14.10 g/t gold
The Monster Lake joint venture project hosts an NI 43-101 compliant resource, effective as at February 26, 2018, comprising 1,109,700 tonnes of inferred resources averaging 12.14 grams of gold per tonne for 433,300 ounces of contained gold (see news release dated March 28, 2018). The 2018 winter drilling program was designed to improve confidence in the continuity of the mineralization and to test for extensions of the known mineralized zones. Key objectives of the drilling program included: infill drilling targeting the upper part of the 325-Megane Zone largely delineated by only historical drilling; testing for proximal extensions along strike and at depth; and evaluating newly discovered areas of mineralization within a structure parallel to the Main Shear Zone and adjacent to the 325-Megane Zone, referred to as the Lower Shear Zone. All of the areas targeted in this program are best accessed during the winter when the ground is frozen.
Craig MacDougall, Senior Vice President, Exploration for IAMGOLD, stated: “We continue to be impressed with both the continuity and the high grades demonstrated by infill drilling of the 325-Megane Zone. Although confirming resource extensions and expanding additional areas of mineralization has proved to be challenging for our exploration team, this style of mineralization remains an attractive exploration target. As I have said before, we believe the structural setting suggests favourable potential for the occurrence of additional mineralized shoots along the Monster Lake structural corridor and we continue to evaluate this setting for additional zones of mineralization.”
“The results obtained from this last drilling program continue to show solid high-grade gold potential for the Monster Lake project, which could translate into additional resources,” said David Grondin, President and CEO of TomaGold. “As we continue to see strong results from IAMGOLD, we believe that this asset could become extremely valuable for TomaGold.”
These results will be incorporated into the deposit model and used to update the mineral resources to guide the next drilling programs. Ongoing geochemical and structural studies will continue to support exploration targeting. A further round of drilling is being planned to test specific structural targets which are accessible in the summer season.
About the Monster Lake Project
The Monster Lake project is underlain by Archean volcanic rocks of the Obatogamau Formation and is traversed by an important deformation corridor and associated gold-bearing mineralized structures. Historical drilling and exploration by TomaGold have identified a four-kilometre long structural corridor, along which most of the known gold occurrences discovered to date on the property are associated, including the Megane Zone.
The Monster Lake project is held under an earn-in option to joint venture agreement with IAMGOLD, which holds an undivided 50% interest in the property, and holds an option to earn a further 25% undivided interest, for a total 75% undivided interest in the project, should it spend a total of C$10.0 million on the project within a seven year period, beginning January 1, 2015. Should a development decision be made by the joint venture, or should the joint venture declare commercial production, TomaGold would be entitled to a further C$1.0 million payment for each of these events.
On August 14, 2017, IAMGOLD subscribed for 27.7 million common shares of TomaGold from treasury representing 19.98% of the outstanding common shares of TomaGold. The common shares were purchased at a price of C$0.09 per common share, for an aggregate purchase price of C$2.5 million. Prior to the acquisition, IAMGOLD did not hold any common shares of TomaGold.
Technical Information and Quality Control Notes
The drilling results contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).
The “Qualified Person” responsible for the supervision of the preparation and review of this information is Marie-France Bugnon, P. Geo., General Manager Exploration. Marie-France is considered a “Qualified Person” for the purposes of National Instrument 43-101 with respect to the technical information being reported on. The technical information has been included herein with the consent and prior review of the above noted Qualified Person. The Qualified person has verified the data disclosed, and data underlying the information or opinions contained herein.
The sampling of, and assay data from, the drill core is monitored through the implementation of a quality assurance – quality control (QA-QC) program designed to follow industry best practice. Drill core (NQ size) samples are selected by the IAMGOLD geologists and sawn in half with a diamond saw at the project site. Half of the core is retained at the site for reference purposes. Sample intervals may vary from half a metre to one and a half metres in length depending on the geological observations.
Samples are transported in sealed bags to ALS Minerals Laboratory located in Val-d´Or, Québec. Samples are coarse crushed to a -10 mesh and then a 1,000 gram split is pulverized to 95% passing -150 mesh. ALS Minerals processes analytical pulps directly at their facilities located in Val-d´Or which is ISO / IEC 17025 certified by the Standards Council of Canada. Samples are analyzed using a standard fire assay with a 50 gram charge with an Atomic Absorption (AA) finish. For samples that return assay values over 5.0 grams per tonne (g/t), another pulp is taken and fire assayed with a gravimetric finish. Core samples showing visible gold or samples which have returned values greater than 10.0 g/t are re-analyzed by pulp metallic analysis. IAMGOLD inserts blanks and certified reference standard in the sample sequence for quality control.
About TomaGold Corporation
TomaGold Corporation is a Canadian mineral exploration company engaged in the acquisition, assessment, exploration and development of gold mineral properties. To optimize its chances of discovery and minimize its exploration risk, TomaGold aims to develop high-grade gold properties with major mining companies. It currently has joint venture agreements with IAMGOLD Corporation for the Monster Lake project, with Goldcorp Inc. for the Sidace Lake property, and with Goldcorp Inc. and New Gold Inc. for the Baird property. TomaGold has interests in six gold properties in northern Quebec: Monster Lake, Winchester, Lac-à-l’Eau-Jaune, Monster Lake East, Obalski and Lac Cavan near the Chibougamau mining camp. It also holds a 39.5% interest in the Sidace Lake property and a 24.5% in the Baird property near the Red Lake mining camp in Ontario. Finally, it has an option to acquire a 70% interest in the Hazeur property, at the southern edge of the Monster Lake group of properties.
The Corporation is also engaged in gold brokerage activities in South America through its subsidiary, TomaSouth Corporation.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The statements in this news release that are not historical facts are “forward-looking statements”. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those described in such “forward-looking” statements.
Drill hole intercepts are calculated using a 0.50 g/t Au assay cut-off.
True widths of intersections are approximately 85 to 90% of the core interval.
Assays are reported uncut but high grade sub-intervals are highlighted.