Noka Resources Signs Agreement to Acquire Strategic High Grade Gold Properties Adjacent to the Springpole Gold Deposit; Historical Drill Results on New Properties include 2.45 m Grading 244.73 g/t Gold
Vancouver, British Columbia, March 14, 2017 – Noka Resources Inc. (TSXV: NX) (9BR1: Frankfurt) (the “Company” or “Noka”) and Pelangio Exploration Inc. (Pelangio) (TSXV:PX) are pleased to announce that they have entered into an option agreement whereby Noka may acquire a 100% interest in Pelangio’s Birch Gold Project. Noka has also entered into an option agreement to acquire 100% of the Uchi Gold Project from 2522962 Ontario Inc. (“2522962 Ontario”). The combined land package totals 38 mineral claims and 2,352 Hectares (“Ha”) and is located contiguous to the Springpole Deposit controlled by First Mining Finance (FF: TSXV).
Dominic Verdejo, President and CEO of Noka commented, “We are excited to have secured a strategic land position immediately adjacent to the Springpole Gold Deposit. The large land position totaling 2,352 Ha is situated in one of the richest gold belts in western Ontario and has yielded significant high grade gold intersections and contains geological similarities to other known gold occurrences in the area.”
Pelangio High Grade Birch Gold Project
The Birch Gold Project consists of 28 mineral claims (432 Ha), is located within the Birch-Uchi Greenstone Belt, approximately 120 km northeast of the town of Red Lake, Ontario, and has seen significant “Red Lake Type” high grade gold intercepts by previous operators. Dome Exploration (Canada) Ltd. (later Placer Dome and then Goldcorp Inc. (“Placer Dome”)) and Trade Winds Ventures Inc. (“Trade Winds”) have completed the majority of the exploration work on the Birch Gold Project to date. Select historical drilling intercepts** on the Birch Gold Project’s Main Central Zone are shown below.
|Hole No||From||To||Metres10||g/t Gold|
|Placer Dome1,3,6DDH 53||136.60||138.50||1.90||63.94|
|Placer Dome1,3,6DDH 78||174.45||176.45||2.00||105.30|
|Placer Dome1,4,7DDH 90||208.00||210.00||2.00||52.08|
**Readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon. The potential quality and grade of this exploration target is conceptual in nature, as there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource. Management also cautions that past results or discoveries on adjacent properties may not necessarily be indicative to the presence of mineralization on the Company's properties.
* Reference: from Geological Reports by:
1 M. Ball PhD, P.Geo., Mosquito Consolidated Gold Mines Ltd., December 2002.
2 R. Wells, P.Geo., Trade Winds Ventures Inc., NI 43-101, February 2005.
3 Data from detailed diamond drill sampling logs and records, received from Placer Dome, assay certificates unavailable.
4 Data from detailed diamond drill logs and sampling records, performed by Placer Dome, assay certificates from Chemex Labs, Vancouver, fire assay gravimetric finish.
5 Data from diamond drill sampling logs and records, Trade Winds Ventures, fire assaying performed by Eco tech Laboratory Inc., Kamloops BC, assay certificates available, diamond drilling program 2004-2006 supervised by Lorne Warner, P.Geo. N-Q core was split, sample lengths varied from 0.6 m to 1.05 m.
6 Data from Placer Dome drill holes DDH 53 and DDH 78 are historical results and cannot be verified with assay sheets, it is unknown what type of quality-control programs were performed.
7 Data from Placer Dome drilling has been verified with assay certificates for DDH 96, duplicate assays were performed, but the quality-control program is unknown.
8 Data from Trade Winds has been verified with assay certificates, and a comprehensive program of blanks, duplicates and standard were inserted to the sample stream during program. The program was supervised by Lorne Warner P.Geo., and meets modern industry practice. Sample lengths varied from 0.6 m to 1.05 m.
9 All Trade Winds drill core was located by Pelangio geologists, during a data verification program in 2008, core was photographed, catalogued and cross-piled. In addition, all Trade Winds collars were field-located as well as a significant number of the older Placer Dome holes and the collar locations were found to be within 5 m of maps supplied by Trade Winds and Placer Dome. The verification program was carried out under the supervision of Warren Bates P.Geo., (APGO# 0211) - and the results have been discussed with and accepted by Peter Caldbick P.Geo (APGO#0985).
10 All intervals are core lengths, and estimates of true widths would be 60 to 80 percent of core lengths.
Within an 8 km radius of the Birch Gold Project, there is the large gold resource (Springpole Deposit) and the historical Argosy Gold Mine which produced 101,875 ounces of gold at an average grade of 0.37 ounce per ton (reference: Ontario Geological Survey Open File Report 5835). Mineralization on any adjacent property may not be representative of mineralization that may be identified on the Company's property.
Initial exploration work on the Birch Gold Project by Placer Dome consisted of mapping, geophysical and geochemical surveys along with diamond drill follow-up, resulting in the discovery of the 70-meter wide, steeply dipping deformation corridor that yielded isolated high-grade gold intersections. Subsequently named the High Grade Island Deformation Zone, high-grade gold mineralization within this corridor is hosted by quartz-tourmaline-pyrite-arsenopyrite veins in the Main Central Zone. Secondary gold mineralization associated with a folded banded iron formation (West Zone) that is proximal to the deformation zone, has also been recorded.
Subsequent to Placer Dome’s exploration, Trade Winds conducted two diamond drill programs to evaluate the Main Central Zone between 200 m and 400 m below surface. The Main Central Zone has been diamond drill tested along 350 m of strike length with two mineralized shoots identified. Gaps in drill testing remain. The bulk of the drilling to date has been completed above 200 m; however, the Trade Winds’ DDH 97 hole (intercept) demonstrated that high-grade potential exists at depth. It is recommended that a program of deeper drilling and infill drilling between the known shoots be completed to fully evaluate the potential of the Main Central Zone.
Geological mapping, drilling results, and geophysical surveying suggest that the High Grade Island Deformation Zone and structure extends across High Grade Island for 1800 m. Further, induced polarization surveying suggests the deformation zone extends beyond the island for another 1800 m southeast. Approximately 3,250 m of projected deformation zone remains to be evaluated. (Reference: Trade Winds NI 43-101, February 2005, and Mosquito Consolidated Gold Mines Ltd., December 2002).
Uchi Gold Project
The Uchi Gold Project, made up of 10 mineral claims (1,920 Ha), was acquired in order to cover the prospective geology proximal to the High Grade Island Deformation Zone and the Springpole Gold Deposit. The Uchi Gold Project land holdings cover the interpreted strike extension and potential down dip extension of the High Grade Island Deformation Zone, and is contiguous with the Springpole Deposit’s claims. The southwest extremity of the Uchi Gold Project is approximately 3,600 meters northeast of actual Springpole deposit.
In addition, the Uchi Gold Project also covers a very prospective gold bearing iron formation with exposure over approximately 1,600 meters of strike length. There are numerous documented historical occurrences of high grade gold mineralization within the iron formation that has had very limited state of the art exploration. A typical iron formation hosted gold deposit in northwestern Ontario is Goldcorp's Musselwhite Mine located approximately 200 km to the northeast of Uchi Gold Project.
Acquisition Terms for the Birch and Uchi Gold Projects
Noka has a right to earn a 100% interest in the Birch Gold Project by paying a total of CDN$375,000 and issuing an aggregate of 4,500,000 common shares over a four year period to Pelangio. Noka must also incur exploration expenditures of CDN$1,300,000 over a four year period. The Birch Gold Project is subject to a 2% net smelter returns royalty held by Goldcorp Inc.
Noka has a right to earn 100% interest in the Uchi Gold Project by paying a total of CDN$75,000 and issuing an aggregate of 1,250,000 common shares over a four year period to 2522962 Ontario. 2522962 Ontario retains a 2.5% net smelter returns royalty on the Uchi Gold Project, 1% of which can be purchased by Noka by payment of CDN$1,000,000 within 180 days of the public announcement of a positive feasibility study.
The acquisition of both projects is subject to approval by the TSX Venture Exchange.
Noka Resources Inc. (TSX.V:NX) is a Canadian junior exploration company focused on mineral exploration in North America. The Company is focused on advancing exploration activity on the Birch and Uchi properties adjacent to the Springpole Gold Deposit (controlled by First Mining Finance (FF: TSXV)) in the Red Lake Gold District of western Ontario and the Tully West Property located northeast of Timmins, Ontario. The Company’s goal is to secure and explore quality mineral assets in the Americas.
This press release has been reviewed and approved by Peter Caldbick, P.Geo. Mr. Caldbick is a Qualified Person for the purposes of National Instrument 43-101. Mr. Caldbick has reviewed the verification process and believes it to be reliable.
For more information, please contact Dominic Verdejo, President and CEO at 1-(855)-584-0258 or [email protected]nokaresources.com .
ON BEHALF OF THE BOARD
Dominic Verdejo, President and Chief Executive Officer
Neither TSX Venture Exchange nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains "forward-looking information" that is based on Noka’s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Noka’s exploration and development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Noka’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Noka disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.