Cache Exploration Inc. Announces Closing of Kiyuk Lake Gold Property Transaction
Vancouver, British Columbia - TheNewswire - October 9, 2019 - Cache Exploration Inc. (the "Company" or " Cache"), (TSXV:CAY) is pleased to announce that further to previously announced news releases, the TSX Venture Exchange (the "Exchange") has approved the disposition by the Company of an undivided 50% interest in the Kiyuk Property to Margaret Lake Diamonds Inc. pursuant to an option agreement between the Company and Margaret Lake Diamonds Inc. ("Margaret") dated February 4, 2019 (the "Transaction"). The Transaction is arm's length.
Pursuant to the Transaction,
1.Margaret is to issue 5,000,000 common shares of Margaret within 10 days of Exchange acceptance of the transaction;
2.Margaret is to invest $150,000 into the Company through the acquisition of shares of the Company under a private placement;
3.Margaret is to make a cash payment of $100,000 to the Company on or before the first anniversary of the effective date of the option agreement; and
4.Margaret is to fund expenditures on the Kiyuk Lake property in the amount of $3,000,000 on or before the third anniversary of the effective date of the option agreement.
Shareholders of the Company approved the option agreement at the Company's annual and special meeting held on June 21, 2019.
CEO Jack Bal comments, "We are very happy to have Margaret Lake as a partner on our advanced Gold project at Kiyuk lake, Nunavut Canada"
About Cache Exploration's Kiyuk Lake Gold Property
The Kiyuk Lake Property covers 590 square kilometers in Kivalliq Region - Southwest Nunavut. The 2017 drill program confirmed and extended a known target and discovered significant gold mineralization at a new target area, East Gold Point (see Company Press Release, October 26, 2017).
At Rusty Zone the Company not only confirmed that mineralization extends to 200m below surface but also intersected a previously unknown high-grade phase of 8m of 26.4 g/t gold. At the same time, the Company discovered extensive mineralization at East Gold Point with 64 m at 1.5 g/t gold and 10 m at 6.5 g/t gold.
Prospecting returned two +5 g/t gold samples and the till campaign isolated two new anomalous areas that offer compelling evidence for further possible discovery.
Kiyuk Lake 2017 Drilling Highlights (True width not determined yet)
- KI17-001 at Rusty Zone returned 8m at 26.4 g/t gold from 108m
- KI17-004 at Rusty Zone returned 122m at 1.8 g/t gold from 188m
- KI17-005 at newly discovered East Gold Point Zone intersected:
64m at 1.5 g/t gold from 35m and
10m of 6.5 g/t gold from 248m
Prospecting samples returned:
- 5.57 g/t gold from west of the Rusty Zone
- 5.60 g/t gold grab sample from north of Kiyuk Lake and from the newly identified Nansen target area
One to two kilogram till samples collected in the field were screened to -230 mesh at the Bureau Veritas Minerals laboratory in Vancouver, British Columbia before being digested using a dilute aqua regia digestion of a 30g subsample (code AQ252) and analyzed by ICP-MS for a suite of 37 elements, including gold. Data accuracy and precision is monitored with certified reference materials submitted with the samples and field duplicates, as well as through monitoring of laboratory internal standards and pulp duplicates.
Drill core and rock samples are bagged and sealed and submitted to SGS in Red Lake, Ontario for sample preparation. Sample preparation involves crushing 2m lengths of split drill core to a nominal 75% passing 2mm, followed by pulverization of a 250-g split to a nominal 85% passing 75 microns. Gold analysis is completed in the SGS Red Lake lab with a 50g fire assay and AAS finish (code GE-FAA515). Samples returning >10g/t Au are re-assayed with a gravimetric finish (code GO-FAG505). Control samples (certified reference materials, coarse blanks and 1/4 core duplicates) were inserted on a regular basis. Laboratory internal standards, coarse crush duplicates and pulp duplicates are also monitored. Results are assessed for accuracy, precision and contamination on an ongoing basis.
Please click http://cacheexploration.com/CAY-NR-10-26-17 to view:
- Plan map of the Rusty Zone and East Gold Point
- Detailed section showing the recent KI17-004 drill results
- Plan map of the East Gold Point Zone
- Detailed section showing the recent KI17-005 drill results
- Maps of rock and till sampling results
Chris Pennimpede, P. Geo., Vice President, Exploration and Director for the Company is a Qualified Person as
defined by National Instrument 43-101, has reviewed and verified the technical mining information on Kiyuk Lake provided in this release.
For more information about Cache Exploration, please visit: http://www.cacheexploration.com/
On behalf of the Board of Directors
Cache Exploration Inc.
Chief Executive Officer
FOR MORE INFORMATION, PLEASE CONTACT:
FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements within the meaning of Canadian securities laws, including statements regarding the Kiyuk Lake Property and the Deep Lake Property: statements pertaining to the ability of Cache Exploration Inc. ("CAY"); the potential to develop resources and then further develop reserves; the anticipated economic potential of the property; the availability of capital and finance for CAY to execute its strategy going forward. Forward-looking statements are based on estimates and assumptions made by CAY in light of its experience and perception of current and expected future developments, as well as other factors that CAY believes are appropriate in the circumstances. Many factors could cause CAY's results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: discrepancies between actual and estimated results from exploration and development and operating risks, dependence on early exploration stage concessions; uninsurable risks; competition; regulatory restrictions, including environmental regulatory restrictions and liability; currency fluctuations; defective title to mineral claims or property and dependence on key employees. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. 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.
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release