Gatling Expands Land Position at the Larder Gold Project: Adds Drill-Ready Targets
Vancouver, British Columbia, April 2, 2019 – GATLING EXPLORATION INC. (TSXV: GTR, OTC: GATGF) (the “Company” or “Gatling”) is pleased to announce that it has entered into an assignment and assumption agreement (the “Assignment Agreement”) with Teck Resources Limited (TSX:TECK.A and TECK.B, NYSE: TECK) (“Teck”) to acquire Teck’s option to acquire the 1,274 Ha Kir Vit claim package in the Larder Lake district (the “Property”), in Ontario, Canada. Once the option is exercised, the acquisition increases Gatling’s contiguous land position to 3,370 ha, at the Larder Gold Project, which is host to two deposits with historical resource estimates. (Figure 1). In addition, the new Property hosts several near-surface drill-ready target areas that trend onto proven zones such as Agnico Eagle’s Upper Beaver deposit that has an Indicated mineral resource of 1,461,000 oz Au at 6.62 g/t Au with 56,006,000 lbs. Cu at 0.37% Cu (6,870,000 t) and an Inferred resource of 712,000 oz Au at 4.85 g/t Au with 32,218,000 lbs. Cu at 0.32% Cu (4,570,000 t).1
The addition of the Kir Vit property opens up new exploration opportunities within Intrusion related gold targets and Timiskaming Sediments – geology that is consistent with hosting gold mineralization similar to the Larder gold project and elsewhere in the region. Also, Teck’s database of recent exploration activities on the Property, including geophysics and surface sampling, will be reviewed and compiled for future targeting. Gatling would like to also welcome Teck as a shareholder.
Property Acquisition Highlights
- Increases Contiguous Land Package in Prolific Gold District. With the addition of Kir Vit, the Larder gold project (host to two deposits with historical resources) will comprise 3,370 Ha in the Larder Lake gold district.
- Near Surface Gold Mineralization. Surface sampling completed at new property has returned gold values up to 7.9 g/t Au.
- Multiple New Drill Targets. The acquisition opens new exploration potential in intrusion related gold targets, along trend of the Upper Beaver deposit.
- Geophysics has Identified Additional Potential Targets. A 3D induced polarization survey was completed by Teck in 2017 on the Property that identifies a number of targets.
Figure 1. Gatling Exploration’s expanded land position at the Larder Gold Project with regional geology and deposits.
Under the terms of the Assignment Agreement, Gatling will take an assignment of a January 2017 underlying agreement (the “Kir Vit Agreement”) between Teck and certain parties that originally staked the claims comprising the Property (the “stakers”), and step into Teck’s place in the Kir Vit Agreement. On closing, in consideration of the assignment, Gatling will issue 1,750,000 common shares to Teck. Then if Gatling chooses to exercise the option in the Kir Vit Agreement, which requires a remaining cash payment of $250,000 to the stakers by January 31, 2020, Gatling will grant to Teck a 0.5% NSR on the Property. Under the Kir Vit Agreement, a 2% NSR will also vest in the stakers, subject to reduction of such NSR to 1% on payment of $1,000,000 to the stakers. Additionally, under the Assignment Agreement, if Gatling exercises the option under the Kir Vit Agreement and makes a decision to put the Property into production, Teck is also entitled to a $4,000,000 cash payment.
The transaction is subject to the acceptance of the TSX Venture Exchange. The shares to be issued to Teck under the Assignment Agreement will be subject to a four month hold period under securities laws.
About Gatling Exploration
Gatling Exploration is a well-financed Canadian gold exploration company focused on advancing the Larder Gold Project, located in the prolific Abitibi greenstone belt in Northern Ontario. The Larder property hosts three high-grade gold deposits along the Cadillac-Larder Lake Break, 35 km east of Kirkland Lake. The project is 100% controlled by Gatling and is comprised of patented and unpatented claims, leases and mining licenses of occupation within the McVittie and McGarry Townships. The 3,370-hectare project area is positioned 7 km west of the Kerr Addison Mine, which produced 11 million ounces of gold. All parts of the Larder property are accessible by truck or all-terrain vehicles on non-serviced roads and trails.
The technical content of this news release has been reviewed and approved by Nathan Tribble, P. Geo., VP Exploration of Gatling Exploration and a Qualified Person pursuant to National Instrument 43-101. The qualified person has not yet verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in the written disclosure.
ON BEHALF OF THE BOARD OF DIRECTORS,
Nav Dhaliwal, President and CEO
Gatling Exploration Inc.
For further information on Gatling, contact Investor Relations
Neither 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 release.
Forward Looking Statements: Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in our forward-looking statements. Although we believe that the expectations in our forward-looking statements are reasonable, actual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
1 Technical Report on the Upper Beaver Gold-Copper Project, Ontario, Canada, SRK Consulting, September, 2012)