CRES to Sell Middle Ridge South Gold Property in Central Newfoundland
CREST RESOURCES INC.
Sui t e 1 1 00 - 5 95 H o w e S t re e t, V an c ou v er, BC V 6C 2T5 T (6 0 4) 68 1 -3 17 0 , F (6 0 4 ) 6 8 1 -3 5 5 2
NEWS RELEASE
Crest Resources to Sell the Middle Ridge South Gold Property in Central Newfoundland
Vancouver, B.C. – July 9, 2020 – Crest Resources Inc. (“Crest” or the “Company”) (CSE: CRES) is pleased to announce that the Company and its co-vendors (together, the “Vendors”) have entered into an agreement (the “Agreement”) with Mariner Resources Corp. (“Mariner”) to sell Mariner a 100% undivided interest, subject to retained royalty, in the Middle Ridge South gold property (the “Property”). The Property is located in central Newfoundland and Labrador and consists of 558 mineral claims covering approximately 139.50 km² (13,950 Ha). The Property is accessible by traveling South from the town of Bishop’s Falls on the Bay d’Espoir Highway for 75 km where the highway transects the Property.
Transaction Outlined
Under the terms of the Agreement, Mariner will acquire a 100% interest in the Property for consideration of $240,000 cash payable upon signing the Agreement and 1,800,000 common shares of Mariner due upon close of the transaction to take place within 10 business days of receipt of Canadian Securities Exchange approval. The Vendors will retain a 2.0% net smelter returns royalty on the Property of which Mariner can purchase 1.0% for $1,000,000 at any time. The Vendors’ interest in the Property is currently held 85% by the Company, 5% by Volatus Capital Corp. and 10% by Nicholas Rodway, an officer of the Company.
Crest president Michael Collins comments, “Crest has seized the opportunity to secure gold projects in Newfoundland ahead of the competitors and we are pleased to be partnered with Mariner to explore the Middle Ridge South Project. We believe that our extensive staking and acquisition of projects in the Exploits Subzone will generate significant returns for our shareholders in the months ahead as the scale and breadth of discovery in the Exploits Subzone is understood by the market.”
Middle Ridge South Gold Property
The Property straddles 40 km of the southernmost end of the Gander River Ultra Mafic Belt (GRUB), along the offset portion of the regional structure, which is thought to be very important in the mobilization and concentration of gold mineralization in the area. The Property is 82 km southwest of the late 2019 New Found Gold Corp. gold discovery, which returned a diamond drill hole with 92.86 g/t Au over 19.0 metres near surface (see New Found Gold Corp. news release dated January 28, 2020).
Property Highlights
- The Middle Ridge South project encompasses 40 km of the GRUB line offset, which is the
easternmost bounding structure of the Exploits Subzone (a geological subzone formed as a result of the closing of the Iapetus Ocean).
- The GRUB regional thrust fault offset structure is a conduit and a focus of deep mantle fluids
which is believed to be spatially associated with significant gold mineralization in the region.
- Gold deposition in the Exploits Subzone is found in secondary and tertiary structures
crosscutting siliciclastic sediments bounded by the GRUB line.
- A combined airborne magnetic and electromagnetic survey in 1969 completed by McPhar
Geophysics Ltd., on behalf of Noranda Exploration Ltd., defined discrete conductive zones (Noranda Exploration, 1971) within these secondary and tertiary structures that warrant further exploration.
The technical portion of this news release has been reviewed and approved by Mr. Nicholas Rodway, P.Geo. and VP Corporate Development and a shareholder of Crest, a qualified person as defined under NI 43-101.
About Crest Resources Inc.
Crest Resources Inc. is a British Columbia company listed on the Canadian Securities Exchange under the symbol CRES. The Company’s principal business activity is the acquisition, exploration and evaluation of mineral property assets in Canada, Australia and Peru and the investment in mineral exploration companies and related mining technologies of merit. The Company’s Canadian mineral property assets include various land positions totalling 977 km2 (97,700 hectares) within the Exploits Subzone, the newest emerging district-scale gold exploration and mining district in the province of Newfoundland and Labrador.
FOR FURTHER INFORMATION CONTACT:
Michael Collins President and CEO Crest Resources Inc.
Telephone: 604-681-3170
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Forward-Looking Statements
This news release contains certain forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company’s exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.