Transatlantic Mining Corp. enters into a Lease and Purchase agreement for the Kearsage Claim Group in Madison County, Montana
TCO NEWS RELEASE-VANCOUVER, B.C., May 4th, 2017 – Transatlantic Mining Corp. (the “Company”) (TCO:TSX.V) announces that it has entered into an exclusive agreement to lease and purchase the Kearsage Claim Group (“KCG”) in Madison County in the State of Montana , USA. These claims are approximately 4 miles from the US Grant mine and mill complex currently leased by Transatlantic Mining Corp and add to the consolidation strategy of the district that Transatlantic is undertaking with a “historical estimate’ stated as 600,000 ounces (no tonnes and grade stated) of gold by previous operators. The Company is not treating the historical estimate as a current mineral resource or reserve until further due diligence and technical work has been reviewed and undertaken during the due diligence period.
Key components of the transaction:
- Transatlantic has been granted an exclusive right to all data and information on the KCG for a period of eight
(8) months whereby full due diligence can be conducted for consideration of US$60,000.
- A First Renewal Term of twelve (12) months following the expiry of the due diligence period for consideration of US$40,000
- A Second Renewal term of ten (10) years following the expiry of the First Renewal Term for consideration of US$8,333.33 per month until Transatlantic reaches commercial production of a minimum of 30,000 ore tons per month.
- Following achievement of commercial production of 30,000 ore tons per month the lease payments will increase to the greater of:-
- US$200,000 annually (payable monthly at US$16,666.67), or
- A five (5) percent Net Smelter Royalty (“NSR”)
- Following achievement of commercial production of 100,000 ore tons per month the lease payments will increase to the greater of:-
- US$300,000 annually (Payable monthly at US$25,000), or
- A ten (10) per cent NSR
- Following achievement of commercial production of 30,000 ore tons per month the lease payments will increase to the greater of:-
- Transatlantic has the option to purchase the Kearsage Claim Group at any time with the payment of US$6,000,000 less any payments made in respects to the lease payments and the initial payment of US$60,000, first and second renewal terms.
About the Kearsage Claim Group (KCG)
The KCG is located approximately 4 miles from the US Grant Mine and Mill Complex and provides an ideal opportunity for Transatlantic to increase ownership within close proximity of existing infrastructure for future mine exploitation.
Transatlantic Mining Corp. | Suite 800 | 1199 West Hastings Street | Vancouver | Canada V6E 3T5 T 604-424 8257 | F 604-357 1139| www.transatlanticminingcorp.com There are 33 patented private land claims for a total of approximately 700 acres that contain mineralised veins.
The Kearsage Claim Group has had historical mining and the pre-2001 stated mineral inventory of 600,000 ounces (no tonnes and grade stated) in the statement as a “Historical Estimate “( Previous Operating Companies and JVs with Kennecott and Hannover ,Annual Report 1995- ) . The statement of information was based on the following table below :
| Company and Year | Type Of Activity | Quantity |
|---|---|---|
| Kennecott 1992-1993 | Diamond drilling | 16 holes |
| Kennecott 1993 | Reverse Circulation Drilling | 19 holes |
| Hannover 1994/1995 | Mine development/Cross cuts | 3,000 feet |
| Hannover 1994/1995 | Underground Diamond Holes | 26 holes |
| Hannover 1994/1995 | Mapping and sampling underground |
Mineralisation appears to be open on strike and down dip with limited information seen to date. There is information that supports the mineralisation, but to date no existing detailed technical compiled report has been observed to state the classification prepared to this historical estimate. No new recent estimates have been observed other than the report as stated above. Further work by the Company will be required including reviewing core and sample receipts and potentially diamond drilling twin holes to confirm the historical intersections.
The Company is not treating the historical estimate as a current mineral resource or reserve and will develop the plan to evaluate the information in the oncoming 8 months. Transatlantic is of the belief that with further evaluation and studies this could be added to Transatlantic’s extended future in the district.
CEO Bernie Sostak commented,
“ The KCG provides exploration upside in the district with limited historical deep and lateral strike extension drilling. We will commence the due diligence program immediately.”
Chris Pfahl is the Qualified Person responsible for having reviewed and approved the technical information contained in this news release. Chris is the Principal and Owner of Silver Valley Engineering
About Transatlantic Mining Corp.
Transatlantic Mining (TSX-V: TCO) is an emerging precious and base metal explorer. . The Company has a focus on high-grade mining, in stable mining jurisdictions. The Company is engaged in controlling and owning mineral properties interests, such as an 80% Joint Venture position on the Monitor Copper-Gold project in Idaho (USA).
In January 2016, the Company entered a lease (option to purchase) agreement on 100% of the US Grant Gold-Silver Mine & Mill complex in Montana (USA). This has now extracted a concentrate within the last 12 months. A proven management team, led by Chief Executive Officer Bernie Sostak seek to enhance shareholder value through expert exploration/development and expansion of its existing assets, together with selective future earning accretive acquisitions.
For further information please contact: Bernie Sostak +61 (0) 439 904 044
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release