Toronto, Ontario – May 14, 2018 – Generation Mining Limited (CSE: GENM) (the “Company”) is pleased to announce that it has entered an option agreement to acquire a 100% interest in the Alberta Zinc Project. The project is located along the Mackenzie Highway approximately 80 kilometres from the town of High Level, Alberta, and has excellent infrastructure with paved highway and a rail line crossing the claims.
The 60,000-hectare property covers an area thought to be the source of a 4,000 square-km zinc (sphalerite) anomaly. It is thought that this world class dispersion train may have originated from a very large source, likely sedex in nature. The property is located along Great Slave Lake Shear Zone in the Western Canada Sedimentary Basin which hosts the Pine Point zinc camp about 330 kilometres northeast. The area of the property is covered by glacial till ranging from 15-50 metres in depth, with few outcrops.
To acquire its interest, the Company will pay $10,000 and 500,000 common shares upon signing the agreement, and commit to a minimum of $100,000 in expenditures on the property by December 8, 2018, make a further payment of $50,000 (payable in cash or shares) on the first anniversary date and spend an additional $200,000 before the second anniversary of the agreement. The property is subject to a 2% gross metals royalty, of which half can be purchased by the Company at any time for $1 million.
The zinc anomaly was discovered by the Geological Survey of Canada (Open File 7541, 2014). The property is located east of the zinc anomaly, in an area thought to be “up ice” from the dispersion train. In 1990, an oil drill hole intersected 10 metres grading 3.7% zinc at approximately 1200 metres in depth. However, it is thought that the source of the zinc anomaly would have to be hosted by Cretaceous sedimentary bedrock at or very near the contact with the glacial till. Lead-isotope analysis by the GSC indicates that the sphalerite grains found in the glacial till were not a product of the Pine Point deposits, but rather are “interpreted to be the result of glacial erosion of undiscovered proximal Zn mineralization”.
The Company plans to conduct more detailed sampling during the coming summer season, potentially followed by geophysics and drilling towards the end of the year.
The Company also announces that it has granted an aggregate of 3,000,000 options to purchase common shares of the Company exercisable at a price of $0.10 per share for a period of five years, to certain officers, directors and consultants of the Company, in accordance with the terms of the Company’s stock option plan.
Stephen Reford, P.Eng., Director of the Company, a “Qualified Person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the technical information presented in this press release.
About Generation Mining Limited
Generation Mining Limited is a base and precious metals exploration and development company with various property interests throughout Canada. Its primary business objective is to explore and further develop the Davidson Molybdenum project in British Columbia and its other mineral properties, and to continue to increase its portfolio of base and precious metal property assets through acquisitions.
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President and Chief Executive Officer
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors are encouraged to review the Company’s public filings at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.