Expanded Acquisition of Lithium Project in Quebec
Expanded Acquisition of Lithium Project in Quebec Vancouver – July 27, 2022 – True North Gems Inc. (TSXV: TGX, or the "Company") reports that its wholly-owned subsidiary, Laval Critical Elements Inc,. has expanded its transaction with Lithium One Metals Inc. to acquire a 50% interest in the Simac East Lithium Project held by Lithium One Metals Inc. ("L1"). This transaction remains subject to regulatory approval.
The Sirmac East Lithium Project of L1 is comprised of 12 mineral claims in five blocks, having a total area of 656 hectares, in the James Bay area of Quebec.
The Sirmac East lithium project is located roughly 170 kilometres northwest of Chibougamau, Que., and is accessible through a network of highways and forestry roads. A 700-kilovolt power line runs through the area.
The Sirmac East lithium project consists of 12 mineral claims with a total area of 656 hectares, and is located on the NTS map sheet 32J11. The project is contiguous with Vision Lithium's Sirmac property, Winsome Resources' Sirmac-Clapier project and Troilus Gold's Troilus gold project.
The project area is considered highly prospective for lithium hosted in spodumene-bearing pegmatites, with at least two historic lithium occurrences (Sirmac lithium and Clapier lithium) mapped in the western part of the region. In the northeast part of the region, at least one lithiumbearing boulder has been found on land with provincial park status; however, the position of this boulder indicates that the area between the boulder location and the Sirmac lithium deposit (as well as the Clapier lithium showing) has strong potential for further discoveries.
Geologically, the Sirmac East lithium project is located in the northeast part of the Superior geological province in the Frotet-Evans volcanosedimentary belt. Four lithologies are present in the project area: quartz-biotite-hornblende schists, amphibolitized flows or mafic sills, spodumene-bearing pegmatites and a syenite pluton measuring about six kilometres in diameter. The structural trend is roughly eastwest. Numerous granitic pegmatite dikes, with thickness ranging up to 100 metres, have been identified in the area. Lithium mineralization in the region is associated with granitic, rare element, spodumene-bearing pegmatites. Immediately west of the Sirmac East project is the Sirmac lithium deposit with an estimated 314,328 tonnes grading 2.04 per cent lithium oxide (Wrightbar Mines Ltd., 1994).
Terms of the Acquisition
Subject to regulatory approval, the Company shall acquire an undivided 50% interest in the Sirmac East Lithium Property by:
1. Issuing 500,000 units of True North Gems Inc.(each Unit comprises one common share and and 500,000 warrants exercisable at 20 cents for 24 months from the date of issuance of the underlying common shares) to L1 within 10 days of regulatory approval;
2. Expending $250,000 in the aggregate on the Sirmac East and Cyr-Kapiwak on exploration within 24 months;
3. The original vendor to L1 retains a 2% Net Smelter Royalty on the property. L1 has the right to buy 1% of the royalty for at any time for CAN$1 million.
On behalf of the Board of Directors of True North Gems Inc.
"Owen King" (signed)
Owen King CEO & Director 604-618-1835 For further information, contact:
Email: [email protected]
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