TriMetals Mining Inc. Announces Lease Of the Historic Homestake Claims at the Gold Springs Project
November 1, 2017, Vancouver, British Columbia—TriMetals Mining Inc. (TSX: TMI, US OTCQX: TMIAF), (the “Company”), is pleased to announce that its Nevada subsidiary, Gold Springs, LLC (the “GS LLC”) has entered into an agreement (the “Lease Agreement”) to lease six patented lode claims (the “Homestake Claims”) located at the northern extent of the Gold Springs project area within Nevada. Pursuant to the terms of the Lease Agreement, GS LLC is to lease the Homestake Claims for an initial period of 30 years and is to pay the lessor an initial rental payment as well as annual rental payments. In addition, upon commencement of commercial production, GS LLC is to pay the lessor a 3% net smelter returns royalty (the “NSR Royalty”), which NSR Royalty is to be increased to (a) 3.5% if the average price per troy ounce of gold for the calendar quarter is greater than US$1,800, and (b) 4.0% if the average price per troy ounce of gold for the calendar quarter is greater than US$2,000 (the “Second NSR Increase”), subject to a minimum annual royalty payment of US$10,000. GS LLC has the right and option, prior to commencement of commercial production on the Homestake Claims, to buy out the Second NSR Increase for the sum of US$1 million, payable within 60 days from and after commencement of commercial production.
The Homestake Claims were historically worked as high-grade underground operations with undocumented production. The claims have not been subjected to modern exploration as they were last active prior to World War II.
Ralph Fitch, President and CEO of the Company stated, “TMI is excited to have completed the lease on the Homestake Claims as this area displays all of the geologic characteristics we see in the resources we have developed thus far at Gold Springs. This block of claims has never been subjected to modern-day exploration, including drilling, and we are looking forward to being the first group to test this exciting target. The system is exposed for 650 metres along strike and up to 400 metres in width with the potential to continue under post mineral cover and extends the entire 1.8 kilometre length of the claim area. With the addition of this 104 acre claim block TMI has yet another excellent target to explore moving forward.”
The Homestake Claims are located 1,000 metres east of the Gray Eagle resource area in Nevada. The claim block is 1.8 kilometres long by 200-400 metres wide. Historic mining exploited high-grade mineralization hosted in two stacked, banded quartz veins that are westward dipping and structurally controlled by north-south, Basin and Range related extension faults. This style of faulting occurs regionally across the Gold Springs area and serves as part of the controls within the Jumbo resource areas.
The stacked veins are each 2-4 metres wide and can be traced for 650 metres along strike before they are lost under post mineral cover. The system is well exposed in old mine cuts that span several hundred metres of strike length. Veins are surrounded by breccia and stockwork quartz vein zones which extend for up to 400 metres in width before they are lost under the post mineral cover. An old mine trench at the southernmost exposure of the vein systems exposes the breccias associated with the vein systems indicating that the system continues underneath the cover to the south. To the north, the vein trace is lost under post mineral tuffs, however the associated breccias outcrop 400 metres north of where the vein traces are lost, suggesting the mineralization may continue under the post mineral cover and extend for the full 1.8 kilometer length of the claims.
TMI will initiate surface mapping and sampling on the newly leased claims in the immediate future.
About TriMetals Mining Inc.
TriMetals Mining Inc. is a growth focused mineral exploration company creating value through the exploration and development of the near surface, Gold Springs gold-silver project in mining friendly Nevada and Utah in the U.S.A. and by demonstrating the exploration potential at the very large Escalones copper-gold porphyry deposit in Chile.
The Company’s approach to business combines the team’s track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.
The Company’s common shares and Class B shares are listed on the Toronto Stock Exchange under the symbols “TMI” and “TMI.B” and the common shares and Class B shares also trade on the OTCQX market under the symbol “TMIAF” and “TMIBF”. Note that the Class B shares have no interest in the properties or assets of the Company other than a collective entitlement to 85% of the net cash, if any, (after deducting all costs, taxes and expenses and the third-party funder’s portion thereof) received by TMI from award or settlement in relation to the Company’s subsidiary South American Silver Limited’s arbitration proceeding against Bolivia for the expropriation of the Malku Khota project in 2012. Additional information related to TriMetals Mining Inc. is available at www.trimetalsmining.com and on SEDAR at www.sedar.com.
The Qualified Person on the Gold Springs property is Randall Moore, Executive Vice President of Exploration – North America of TriMetals Mining Inc. and he has reviewed and approved the content of this press release.
Forward Looking Statements
Certain statements contained herein constitute “forward-looking information” under applicable Canadian securities laws (“forward-looking statements”). Forward looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “continue”, “target”, “potential”, “suggests”, “will” and similar expressions. Interpretations of exploration results, including the strength of mineralization, are also forward-looking statements. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations if known and unknown risks or uncertainties affect our business or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, risks of the mineral exploration industry which may affect the advancement of the Gold Springs project, including possible variations in mineral resources, grade, recovery rates, metal prices, capital and operating costs, and the application of taxes; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, changes in project parameters, including water requirements for operations, as plans continue to be refined; regulatory, environmental and other risks of the mining industry more fully described in the Company’s Annual Information Form and continuous disclosure documents, which are available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the continuing support for mining by local governments in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold Springs project; execution of the Company’s existing plans and further exploration and development programs for Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, TMI assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this press release describe the Company’s expectations as of November 1, 2017.
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