VANCOUVER, British Columbia, Dec. 13, 2018 (GLOBE NEWSWIRE) — Rotation Minerals Ltd. (“Rotation” or the “Company”) (TSXV: ROT) is pleased to announce that it has entered into an option agreement dated December 12, 2018 with Decade Resources Ltd. (“Decade”) to acquire a 100% interest in the 471.92 hectare Bow property (the “Bow”) located in the Golden Triangle mining district of British Columbia. The Bow is subject to a 3% net smelter return royalty. The option agreement is subject to TSX Venture Exchange (“TSXV”) approval.
The Bow is contiguous with the Company’s 100% owned Scottie Gold property which hosts the past producing Scottie Gold mine. The Scottie Gold mine, operated from 1981 to 1985, milled vein material averaging 16.2 g/t gold, producing 95,426 ounces of gold from 183,147 tonnes of mineralization. Previous exploration work has indicated 13 different gold-bearing veins on the Bow and Scottie Gold properties.
The terms of the option agreement call for cash payments totalling $1,000,000 to be paid in five equal installments as follows:
- $200,000 on TSXV approval of the option agreement;
- $200,000 on or before the date that is 6 months after the execution date;
- $200,000 on or before the date that is 12 months after the execution date;
- $200,000 on or before the date that is 18 months after the execution date; and
- $200,000 on or before the date that is 24 months after the execution date.
In the event that all the payments are not made, Rotation will have no interest in the Bow property.
Edward Kruchkowski, a director of each of Decade and Rotation, abstained from approving the transaction and was not involved in negotiating its terms.
The Bow property covers a package of Hazelton Group volcanic rocks in contact with the Summit Lake stock, part of the Texas Creek plutonic suite. This sequence of rocks exhibits similar alteration and mineralization to the former-producing Premier mine 20 kilometres south of the Bow property, and the KSM copper-gold porphyries and Brucejack gold deposits 20 kilometres north of the Bow property.
In late 2013, Decade completed an extensive program of mapping, sampling, prospecting and trenching on the Bow property. Trenching of a 4.5 metre vein returned numerous high-grade gold results including 23 assays exceeding 500 g/t gold. Three main areas were explored, namely the Bend vein area, the Oro Grande/Blueberry vein area and an area near the south end of the Bow property. Work defined three new veins and a possible fourth along the access tunnel to the former Scottie Gold mine near its A portal. This access tunnel starts at the southwestern portion of the Bow property and was driven southwest for 2.3 kms to the Scottie Gold mine. The dumps for the broken muck from the first 500 metres of the tunnel (on the Bow property) are at the A portal. Pieces of massive pyrrhotite-pyrite mineralization are present in this dump, indicating the presence of a vein and/or veins in the first 500 metres of drifting. Fine visible gold is present in bluish quartz fragments within a matrix of massive pyrrhotite-pyrite.
In 2014 and 2016 Decade drilled a total of 22 holes on the Bow property, testing a number of the recently discovered mineralized zones. Highlights from the two most notable zones, the Big M zone and the Sixties zone, respectively returned gold intercepts 15.25 g/t gold over 49.6 metres (including 56.7 g/t gold over 13.20 metres), and 27.54 g/t gold over 13.11 metres. In addition, Decade reported anomalous cobalt in multiple holes, with values as high as 0.44% cobalt.
Bradley Rourke, President and CEO of Rotation stated “By acquiring the Bow property we have more than doubled our land position in the highly prospective, high grade Scottie Gold camp. We are excited to advance the development of the overall property with the goal of adding high grade ounces.”
Thomas Mumford, Ph.D., P.Geo and VP Exploration of Rotation, a qualified person under National Instrument 43-101, has reviewed the technical information contained in this news release on behalf of the Company.
ABOUT ROTATION MINERALS LTD.
Rotation owns a 100% interest in the high grade, past-producing, Scottie Gold property located in the heart of the Golden Triangle. In addition, Rotation owns 100% interests in the Ruby Silver property, the Black Hills property and the Stock property (75% of which is optioned to Jaxon Minerals Inc.) all located in the Golden Triangle.
Further information on Rotation can be found on the Company’s website at www.rotationminerals.com and at www.sedar.com, or by contacting Bradley Rourke, President and CEO at (250) 877-9902.
ON BEHALF OF THE BOARD OF DIRECTORS
“Bradley Rourke”
Bradley Rourke
President & CEO
FORWARD LOOKING STATEMENTS
This news release may contain forward‐looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward‐looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward‐looking statements whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
