Rouyn-Noranda, Québec, August 10, 2020–X-Terra Resources Inc. (TSXV: XTT) (FRANKFURT: XTR)(“X-Terra”) is pleased to announce that it has completed asoilsampling program over the Grog target, on the Grog property located in Restigouche county, New Brunswick.
Following the interpretation of field data, including the first phase of drill testing (see X-Terra press release dated May 5, 2020), a detailed ground IP geophysics survey will be commencing this week with the goal of further validating targets for a drill program planned for later in 2020.
To date, the Grog area has only been tested by three diamond drill holes totalling600metres drilled on one section. The gold bearing structure was intersected by hole GRG-20-012 with a result of 0.46 g/t over 31 metres. Geological interpretation and the geophysical signature of the Grog area identified targets which are parallel to the GRG-20-012 discovery. The exploration footprint of the Grog system corresponds to an area extending approximately 2 kilometres following an east-west trend.
The Grog system is located close of the Bathurst mining camp in the northern Appalachian Belt.X-Terra sees similarities with the Haile gold deposit currently in production by OceanaGold (TSX: OGC). The Haile gold mine deposit, located in South Carolina, presents many important similarities which can be used to better define an Appalachian type of gold deposit, and provides a geological model for an economic target in the Grog context.
|Geological characteristics*||Grog, New-Brunswick (grass root exploration, drilling stage)||Haile, South Carolina (producing mine)|
|Part of a subduction zone-oceanic island arc complex. Transition from volcanism to shoal sedimentation. Mineralization mainly hosted in fine grain sediments.||✓||✓|
|Long life asymmetrical folded structure of north-east orientation with sub-parallel faults and shear zones controlling mineralization.||✓||✓|
|Different event of quartz and quartz-carbonate veins within stockworks and breccia.||✓||✓|
|Alteration within mineralization: early massive silicification, later matrix filling with sericite and local K feldspar. Moderate pyrite: 1-10%|
Peripheric alteration: Chlorite-calcite-epidote
*Information used to illustrate the size and characteristics of the Haile deposit originates from: NI 43-101 Technical Report Haile Gold Mine Lancaster County, South Carolina, dated August 9,2017. Report prepared for Oceana Gold Corporation by SRK Consulting(U.S.), Inc.A copy of which is available on Oceana Gold Corporation’ profile on SEDAR at www.sedar.com.
“Since the COVID pandemic began in March, we have been preparing to move the Grog project forward towards the second phase of drilling which will allow us to finally follow up on the initial discovery made earlier this year. The soil geochemistry and pending IP survey are concentrated to validate targets that have already been identified throughout our exhaustive compilation and our 3D magnetic modeling.” stated Michael Ferreira, President and Chief Executive Officer of X-Terra. “We are well positioned to enhance shareholder value with drill programs on the Grog property and Troilus East. We expect to publish the results of 478chip samples from Troilus East samples results shortly.”
The $35,000 grant recently received as part of the New Brunswick Junior Mining Assistance Program was used in part to execute this survey to further characterize the drill targets for the upcoming second phase of drilling.
In addition, part of the soil sampling also covered part of the Rim vein showing which is exposed for more than 200 metres, where X-Terra has obtained high grade gold results up to 1,205.06 g/t Au (see X-Terra press release dated December 5, 2018). Given this showing has never been drilled, the soil sampling results are intended to highlight a stock work of parallel veins possibly related to a strike slip fault. It will make up part of the drill targeting initiatives set to commence along with the Grog drill program in September2020.See image and table below.
Sample #2003 highlighting Visible Gold from the Rim Vein is a selected sample and may not represent average grades hosted on the property.
Jeannot Théberge, P. Geo registered in the Provinces of Québec and New-Brunswick, a consultant to X-Terra, a qualified person under National Instrument 43‑101 Standards of Disclosure for Mineral Projects (“NI43-101”)has reviewed the technical contents of this news release and has approved the disclosure of the technical information contained herein.
Quality assurance/quality control
X-Terra adheres to a strict quality assurance and quality control program with regard to core handling, sampling, transportation of samples and lab analyses. Samples selected for assay were shipped via secure transportation to the Techni-Lab (S.G.B. Abitibi Inc.) preparation facility in Ste-Germaine Boulé, QC. Rock samples were assayed for gold by standard fire assay on 30-gram fractions with atomic absorption (TMT-G5B) or gravimetric finish (TMT-G5C) at Techni-Lab (S.G.B. Abitibi Inc.). Samples with visible gold or above 5,000 ppb Au were further analyzed by metallic screen with fire assay (TMT-G5C). The exploration program is designed and the results are interpreted by qualified persons using a quality assurance/quality control program based on industry best practices, including the use of standards and blanks for every 24 samples.
This news release contains statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of X-Terra, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which,such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the exploration programs and development (including any drilling programs) of the Troilus East and/or the Grog and Northwest Properties, or if it does so, what benefits X-Terra will derive from the Troilus East and/or the Grog and Northwest Properties. Forward-looking information is based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond X-Terra’s control. These risks, uncertainties and assumptions include, but arenot limited to, those described under “Financial Instruments” and “Risk and Uncertainties in X-Terra’s Annual Report for the fiscal year ended December 31, 2019, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. X-Terra does not intend, nor does X-Terra undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
About X-Terra Resources Inc.
X-Terra is a resource company focused on acquiring and exploring precious metals properties in Canada.
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 the release.
For further information:
X-Terra Resources Inc.
Michael Ferreira, President and Chief Executive Officer
147 Québec Avenue
Rouyn-Noranda, Québec, J9X6M8
Telephone: 819-762-4101 | Fax: 819-762-0097