Pacton Gold Becomes 3rd Largest Land Holder in Australia’s Pilbara Gold Rush and Significantly Expands its Gold-Bearing Conglomerate Portfolio
Momentum Public Relations
Press Release: May 22 2018
Pacton Gold Inc. (TSXV: PAC, OTC: PACXF) (the “Company” or “Pacton“) is pleased to announce that it has entered into a binding letter of intent (“LOI“) to acquire 100% of the shares in Drummond East Pty Ltd (“Drummond East“), an arm’s length Australian proprietary limited exploration company wholly owned by Impact Minerals Limited (ASX: IPT) (“Impact“). Drummond East holds seven granted tenement licenses, comprising of a total of 1,126 sq km (the “Property“).
Highlights of the Transaction:
- Acquisition of ~1,126 sq km of strategic conglomerate hosting exploration properties.
- Pilbara total land portfolio now increased to approximately 2,227 sq km, which equates to ~18.6% in holdings when compared to the size of Novo Resources Corp. (TSXV: NVO) land holdings, of approximately 12,000 sq km.
- Transaction will place Pacton as the 3rd largest land holder in the Pilbara.
- Previous exploration indicates at least 90 km of prospective Fortescue Group conglomerates occurring at or near-surface on its granted licenses, in particular to the west and east of Marble Bar as well as close to the Beatons Creek gold deposit near Nullagine. Conglomerates identified are approximately the same age as the Witwatersrand Basin Gold deposits of South Africa.
- Properties are directly adjacent and proximal to key exploration properties controlled by Novo Resources Corp. and Kairos Minerals Ltd. (ASX: KAI).
- Rock chip results of up to 11.2 g/t gold occur at the Glen Herring Prospect 10 km west of Marble Bar in a gold-pyrite conglomerate that extends for 25 km.
- Other gold-bearing conglomerates identified on or adjacent to the licences.
- Access to the extensive regional knowledge and technical expertise provided by the Impact Team, led by Managing Director Dr. Mike Jones, who brings specific expertise in conglomerate-hosted gold, and who conducted his PhD studies on this style of mineralization in the northern source areas for the Witwatersrand Basin.
“We are pleased to make accretive acquisitions that strategically place Pacton as the third largest land holder in Western Australia’s Pilbara conglomerate-hosted gold region. Pacton continues to further consolidate the region through key property evaluations, and the addition of Drummond East increases our land holdings to 2,227 sq km,” commented Alec Pismiris, Interim President and CEO of Pacton. “The Impact Minerals team, led by Dr. Mike Jones, have successfully assembled a significant portfolio of advanced gold projects that present excellent prospectivity for discovery upside for the shareholders of Pacton. The Impact transaction solidifies our presence in the region, and is directly in line with our mandate to become one of the leaders in the Pilbara Gold Rush. With a strong treasury and financial backers, we are aggressively reviewing other opportunities.”
Impact’s Pilbara Gold Project and its Prospectivity
The seven 100% owned and fully granted licences cover 1,126 sq km of ground prospective for conglomerate-hosted gold in the Pilbara region of Western Australia (Figure 1). They were staked after an extensive review by Impact, following the discovery of gold in conglomerates at the base of the Fortescue Group by Artemis Resources Limited (ASX: ARV) and the subsequent joint venture with Novo Resources Corp.
The discovery by Artemis Resources indicated a significant breakthrough had been made in the search for conglomerate hosted gold deposits of a similar age to the Witwatersrand Basin of South Africa in the Pilbara. Impact aggresively applied for available prospective ground in the early stages of the Pilbara staking rush.
A preliminary review and synthesis of previous exploration data and mapping by the Geological Survey of Western Australia (GSWA) indicates the two most prospective conglomerate horizons within the Fortescue Group occur within or immediately adjacent to the licences (Figure 2):
- Conglomerates of the Hardey Formation. These rocks host the Beatons Creek resource (Tetra Tech 08/31/15 Measured and Indicated 3.39 Mt at 2.7 g/t gold for 299Koz Au, Inferred 3.04 Mt at 2.7 g/t gold for 259Koz Au) held by Novo Resources Corp. near Nullagine (Figure 2).
- Conglomerates at the base of the Mt Roe Basalt. The recent gold discovery at Purdeys Reward-Comet Well by Novo Resources Corp. and Artemis Resources Limited occurs within this unit (Figure 2).
Previous exploration indicates that the prospective conglomerates occur over at least 90 km of trend at or close to surface within the licences, in particular to the west and east of Marble Bar, as well as close to the Beatons Creek deposit near Nullagine.
West of Marble Bar, previous exploration in the district highlighted several gold occurrences associated with the conglomerate horizons on and along trend from Impact’s licence applications EL45/4972 and EL45/4971 (Figure 3).
Four main gold-bearing conglomerate occurrences have been discovered that demonstrate similar characteristics to those that occur within the Witwatersrand Basin including:
- Glen Herring Prospect: previous rock chip samples in 1989 returned assays of up to 11.2 g/t gold from a gold-pyrite bearing conglomerate within the Hardey Formation, which extends for 10 km of strike on licence EL44/4972 (Figure 3).
- Shady Camp WellProspect: one diamond drillhole was completed by Western Mining Corporation in 1976 to test a surface gold and radiometric anomaly in conglomerate-sandstone and returned 0.9 m at 0.6 g/t gold from 174 m downhole in quartz pebble conglomerate with rounded pyrite in the matrix. The conglomerate occurs close to a carbonaceous shale unit. Further, radiometric gold-bearing conglomerates in the Hardey Formation have been identified by previous explorers for at least 10 km along strike from Shady Camp Well.
The same conglomerates also extend for a further 15 km along strike to the southwest outside of Impact’s licence, where historic assays returned up to 2.1 g/t gold (see Figure 3).
- Gold-bearing pyritic quartz pebble conglomerates have been identified at the base of the Mt Roe Formation by several previous explorers at the Contact Creek Prospect which lies 6 km west of Impact’s licence E45/4971 with the the best rock sample result of 15.9 g/t gold by Novo Resources in 2013 (see Figure 3). This gold-bearing conglomerate extends to the east and occurs very close to surface over at least 4 km of strike on Impact’s licence EL45/4971.
- The Hardey Formation sandstones and conglomerates have been mapped by the GSWA over at least 25 km of strike on EL45/4971 and rock samples of conglomerate with very strong pyrite returned up to 0.26 g/t gold by CRA Exploration in 1987 (Figure 3).
The chemistry and characteristics of the conglomerates from the four propsect areas are similar to those observed in Witwatersrand-style conglomerate-hosted gold deposits.
These are significant observations and are very encouraging for further exploration on Pacton’s newly acquired licences.
These characteristics include:
- Widespread gold-bearing conglomerates in places.
- The identification of rounded detrital pyrite within the matrix between conglomerate clasts.
- The occurrence of black carbonaceous shale that occurs in close proximity to the conglomerates.
LOI Terms
Under the terms of the LOI, which will be formalized by a definitive agreement among the parties, the Company will purchase a 100% ownership interest in Drummond East by paying Impact a total of CAD$350,000 and issuing to Impact 2,125,000 common shares of Pacton.
In addition, Pacton will pay a bonus (the “Discovery Bonus“) to Impact of CAD$500,000 if Pacton publishes measured, indicated, or inferred gold resources of over 250,000 ounces on the Property. Pacton will grant Impact a 2% net smelter royalty in respect of the Property on standard industry terms to be agreed between the parties (the “NSR”). The parties agree that Pacton shall, at all times, retain an exclusive and unlimited right to purchase 50% of the NSR back from Impact for CAD$500,000.
A finder’s fee will be paid to COMVERJ Pty Ltd in respect of the transaction pursuant to the policies of the TSX Venture Exchange.
This transaction is subject to the acceptance of the TSX Venture Exchange.
About Pacton Gold
Pacton Gold Inc. is a Canadian junior exploration company focused on acquiring, exploring and advancing mineral assets in key mining friendly locations globally.
The technical content of this news release has been reviewed and approved Peter Caldbick, P.Geo., a director of the Company 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 Pacton Gold Inc.
Alec Pismiris
Interim President & CEO
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited to the Company acquiring an interest in properties controlled by Impact Minerals Limited and completion of the proposed transaction described herein, the prospect of the Company achieving success in exploring the Property and the impact on the Company of these events, including the effect on the share prices. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their 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.
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Contact:
1-(855)-584-0258 or info@pactongold.com.
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Pacton Gold Receives TSX Venture Exchange Acceptance to CTTR Gold Pty Ltd. Acquisition
Momentum Public Relations
Press Release: April 3 2018
Pacton Gold Inc. (TSXV: PAC, OTC: PACXF) (the ” Company ” or ” Pacton “) is pleased to announce that further to its news release of February 26, 2018, it has received TSX Venture Exchange acceptance for an option to acquire 100% of the issued and outstanding shares of CTTR Gold Pty Ltd (” CTTR “). CTTR holds applications to nine tenement licenses for a strategic mineral property group (the ” Property “) in the Pilbara Region of Western Australia. The 492 km 2 Property is an advanced gold project portfolio that will target conglomerate gold occurences within the eastern extension of the Pilbara conglomerate gold play. One priority will be to explore for a northern extension of DeGrey’s Mallina Basin occurences that include 5 to 80 m thick gold nugget conglomerate beds at Loudens Patch, Jarret Well and Steel Well.
See property map at http://pactongold.com/Pacton_Aus_Regional_Fig1.pdf .
Pacton has commenced compiling and reviewing historical reports and data on the Property and collating other available datasets prior to planning a first-pass field evaluation programme, which will likely comprise of detailed mapping to define key stratigraphic units, rock-chip, soil and stream sediment sampling and metal detecting.
Pacton intends to initiate negotiations with the relevant Native Title representative bodies, representing an intergral step towards the Company’s tenement license applications being granted by the Department of Mines, Industry Regulation and Safety. The Company will commence the heritage notice process to allow for tenure to be cleared for on-ground exploration activities.
Under the terms of the agreement with CTTR, the Company paid $75,000 and issued 916,666 common shares and 458,333 share purchase warrants. Each warrant is exercisable into one common share for a period of 18 months from the date of issue at a price of $0.45 per share.
Upon grant of six key exploration licenses, the Company must pay a further $50,000 and issue 416,666 common shares and 208,333 share purchase warrants. Each warrant will be exercisable into one common share for a period of 18 months from the date of issue with an exercise price equal to 150% of the 5-day trading volume weighted average price of the Company’s shares, subject to a floor price of not less than the $0.24.
All monetary amounts referred to herein are in Canadian currency.
The Company issued 156,250 common shares to COMVERJ Pty Ltd. as a finder’s fee with respect to the transaction.
The Company also announces that further to its news release of March 14, 2018, it has issued 1,833,333 common shares in payment of outstanding debt and confirms that debt of $550,000 has now been extinguished.
About Pacton Gold
Pacton Gold Inc. (TSXV: PAC) is a Canadian junior exploration company focused on acquiring, exploring and advancing mineral assets in key mining friendly locations globally.
On Behalf of the Board of Pacton Gold Inc.
Alec Pismiris
Interim President & CEO
For more information, please contact 1-(855)-584-0258 or dom@pactongold.com .
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited the prospect of the Company achieving success in exploring the Property and the impact on the Company of these event, including the effect on the share prices. References to other companies with proximal exploration properties in the Pilbara region is for information only and there are no assurances that the Company will achieve results similar to other companies in the region. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances .
- Published in Pacton Gold Inc.