OTTAWA, ONTARIO–(Marketwired – May 17, 2016) – Everton Resources Inc. (“Everton” or the “Company“) (TSX VENTURE:EVR) is pleased to announce that it has entered into an option agreement with an arm’s length vendor to acquire a 100% interest in the Blue Sky Jackpot lithium property in the Thunder Bay Mining District of Ontario. The 47 claim unit (752 hectares) property surrounds the 4 claim unit (64 hectares) Jackpot lithium property recently acquired by Alix Resources Corp. (News release dated April 13, 2016). The property is located approximately 150 kilometers northeast of Thunder Bay and is accessible by road.
Mr. André Audet, Everton’s CEO, commented, “We are pleased to diversify our property portfolio with the Blue Sky Jackpot lithium property in Ontario. We believe lithium prices will stay strong as demand increases for energy storage and as the electrification revolution takes hold. The property is highly prospective for the discovery of additional lithium prospects.”
This area which hosts numerous spodumene bearing pegmatite occurrences, has laid dormant since 1955 when the Ontario Lithium Corporation forfeited their patented mineral claims due to unpaid taxes. The patented claim group became available for staking on June 1, 2010.
The Blue Sky Jackpot lithium property hosts several reported occurrences of lithium bearing pegmatite dykes. The area was the subject of a geological report by E. G. Pye, 1965, “Geology and Lithium Deposits of the Georgia Lake Area, Thunder Bay District” Geological Report No.31. This report describes in part some of the occurrences on the Everton controlled property as follows ( these partial historical excerpts from E. G. Pye are presented to indicate the presence of lithium bearing pegmatites on the Everton controlled property and not as an evaluation of the lithium content):
“… It has been traced on the surface in a direction of N.80E. for 350 feet. It is exposed across horizontal widths of up to 30 feet and forms a north-facing escarpment, 10-15 feet high … pegmatite is made up of elongated crystals of potash feldspar, up to 3 feet in length, and prismatic crystals of spodumene, up to 2 feet in length, … Its spodumene content is about 25 percent …”
“… The No. 6C pegmatite … has been traced N.75E. in outcrops spaced at intervals of 30-150 feet, for a length of 440 feet. It dips 30N., with horizontal widths of up to about 30 feet. At the surface, the No. 6C pegmatite averages 10-15 percent spodumene …”
“… There are two dikes in the No. 6B area, about 400 feet S.45W. from the No. 6A outcrop. These dikes strike N.65E. and dip 20NW. One is exposed in two outcrops about 100 feet apart and has horizontal widths up to 30 feet; the other dike, 150 feet southeast of the first, is also exposed in two outcrops, in this case about 65 feet apart, and has widths up to 40 feet. Both dikes contain an appreciable amount of spodumene …”
The Blue Sky Jackpot lithium property also surrounds the Jackpot occurrence, also described by E. G. Pye in his 1965 report which reportedly hosts an estimated historic non-compliant National Instrument 43-101 mineral resource of 2 million tons of 1.09% lithium oxide. Everton proposes to initiate a ground program and to initiate the exploration permitting for a drilling program to test the extensions of documented lithium rich pegmatite dykes that occur within the outer boundary of the Everton controlled claim group. Vertical fence holes to test for the lateral strike and down dip extension of the Jackpot 1 or the Jackpot 2 lithium rich dykes on the Blue Sky Jackpot claim group is a very high priority.
All future analytical work will include a full suite of analysis for lithium as well as a full complement of rare earth elements and other rare metals.
Under the terms of the option to purchase agreement, (“the Agreement”), which remains subject to TSX Venture Exchange Approval, the Blue Sky Jackpot lithium property is subject to a 2% net smelter return (“NSR”) royalty, 50% of which can be purchased by Everton for CDN$1 million. The Agreement also requires an aggregate issuance of 2,000,000 common shares of Everton over a two year period and maintenance of all of the claims in good standing for the duration of the Agreement. The Everton shares will be issued as follows: 400,000 common shares on signing and TSX Venture Exchange approval of the Agreement, 600,000 common shares on the first anniversary thereof and 1,000,000 common shares on the second anniversary thereof.
About Everton Resources Inc.
Everton is an exploration company with concessions in the Dominican Republic adjacent to the Pueblo Viejo Mine, owned by the world’s two largest gold mining companies, Barrick Gold Corporation (60%) in partnership with Goldcorp Inc. (40%) (“Goldcorp”). Everton also holds an interest in the Opinaca region of James Bay, Quebec where the Company has partnered with Hecla Mining Company which is advancing Everton’s interest in the Opinaca B project by funding 100% of all exploration work on one of the largest land packages adjacent to Goldcorp’s Eleonore gold deposit.
Everton Resources Inc.
Andre Audet, Chairman and CEO
This news release contains certain forward-looking statements that involve risks and uncertainties, such as statements of Everton’s plans, objectives, strategies, expectations and intentions. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to Everton, or its management, are intended to identify such forward-looking statements. Many factors could cause Everton’s actual results, performance or achievements to be materially different any future results, performance or achievements that may be expressed or implied by such forward-looking statements. The forward-looking statements included in this press release represent Everton’s views as of the date of the release. While Everton anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements, except in accordance with applicable securities laws. Accordingly, readers are advised not to place undue reliance on forward-looking information. All subsequent written and oral forward-looking statements attributable to Everton or persons acting on its behalf are expressly qualified in their entirety by this notice.
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.
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Andre Audet
Chairman and CEO
613-241-2332
613-421-8406 (FAX)
andre@evertonresources.com
www.evertonresources.com