Puma Acquires the Jonpol Gold Project in Northern New Brunswick, Canada
Rimouski, October 17th, 2019 – In line with its DEAR Strategy, Puma Exploration (PUM-TSXV) has signed a purchase agreement to acquire the Jonpol Gold Project located in the Murray Brook area from local prospectors. Numerous gold occurrences have been identified and are associated with gabbroic intrusions located along a major subsidiary fault of the Rocky Brook Millstream Fault (RBMF). Grab samples collected in trenches reported grades of 17.1 g/t Au, 14.8 g/t Au, 10.6 g/t Au, 6.8 g/t Au, 5.1 g/t Au, and 3.4 g/t Au. The RBMF represents a major structure trending ENE formed by the Acadian Orogeny. It hosts numerous showings and deposits and represents a perfect plumbing system for mineralized fluids.
The Jonpol Gold Project covers 16 claim blocks for 2,745 hectares and is located only 5km North-West of the Murray Brook Project. Very limited diamond drilling has been done on the property which is underlained by sedimentary rocks and mafic intrusions. Drill results reported were 1.13 g/t Au over 12.0m, 1.37 g/t Au over 6.0m, 1.37 g/t Au over 1.4m, 3.89 g/t Au over 1.0m, and 2.78 g/t Au over 1.5m.
In 2017 and 2018, till samples were collected and gold grain count analyses of heavy metal concentrates (HMC) were carried out. The till surveys identified a significant anomaly in the eastern part of the property with up to 19 gold grains that included 9 pristine and 8 modified, indicating a limited glacial transport. Grade of 923 ppb Au for the HMC sample was reported.
The Purchase Agreement covers the Jonpol Gold Project located in Northern New Brunswick. Puma will acquire a 100% interest in the claims by issuing 4,000,000 shares (pre-consolidation). The vendors keep a net smelter royalty (NSR) of 2%. Puma retains the right to repurchase 1% NSR for $1,000,000. Puma must keep the claims in good standing but does not have any minimum work commitments. The transaction is subject to the TSXV Exchange approval.
In connection with the current reorganization of the Company, Puma has defined a four-part strategy for 2019-2020 and beyond: Development, Exploration, Acquisition and Royalties/Ownership (DEAR).
Each part of this strategy is aimed at generating value for shareholders and are defined as follows:
- Development of the Murray Brook Deposit, where the gossan and oxide zones will be investigated to determine the economics and upside potential of the precious metal contents and recovery within these zones. The goal is to convert the surface zone materials that were previously categorized as waste to potential mineable ore.
- Exploration of our advanced stage projects located at the Murray Brook Deposit and Chester Property, aimed at discovering new satellite and contiguous deposits with our drill-ready targets. The objective is to define the 10 best drilling targets at Murray Brook and Chester.
- Acquisition of prospective new properties using our expertise and knowledge acquired in the last 15 years of exploration in New Brunswick will offer a variety of different metals exposures and potentially allow us to make new discoveries within these potential new properties.
- Royalties and ownership gained through the sell-off of non-core assets to third parties represent a potential major financial upside without direct dilution. Currently, Puma holds 14,200,000 shares (48%) of Target Minerals Inc. (1% NSR on Nicholas-Denys) and 100% of Murray Brook Minerals Inc. (0.67% NSR on Murray Brook) and will hold 5,750,000 shares (8%) of BWR Exploration Inc. (1% NSR on Little Stull Lake). Puma has also an option agreement to sell the Red Brook Project to Rio Tinto.
ABOUT PUMA EXPLORATION
Puma is a Canadian mineral exploration company with advanced and early stage precious and base metals projects in Canada. While the priority remains to secure and finalize the acquisition of the Murray Brook project in New Brunswick, the emphasis will be directed to execute its DEAR Strategy to generate value to its shareholders. Puma is currently holding one of the largest land packages in the prolific Bathurst mining camp in northern New Brunswick, Canada.
QUALIFIED PERSONS AND QC/AC
Technical information provided in this news release was prepared and reviewed by Marcel Robillard, P.Geo., President of Puma Exploration, qualified person as defined by NI 43-101. Neither 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. Mr. Robillard is not independent of the Company, as is officer and shareholders thereof.
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Marcel Robillard, President
Forward-Looking Statements: This press release may contain forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Puma to be materially different from actual future results and achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date the statements were made, except as required by law. Puma undertakes no obligation to publicly update or revise any forward-looking statements. These risks and uncertainties are described in the quarterly and annual reports and in the documents submitted to the securities administration.