Rouyn-Noranda, Québec, May5, 2020 –X-Terra Resources Inc. (TSXV: XTT) (FRANKFURT: XTR)(“X-Terra”) is pleased to announce it has drilled a new gold bearing structure at the Grog target on the Grog Property located in Restigouche county, New Brunswick. The mineralization style continues to highlight strong characteristics of an epithermal system.
Hole GRG-20-012 identified gold (“Au”) mineralization over a significant width with one interval of 0.41g/tAu over 36 metres along the hole, which includes 0.46 g/t Au over 31 metres and includes 7.59g/tAu over 0.6 metres located at a vertical depth of 81 metres under the Grog showing.
Michael Ferreira, President andChief Executive Officer of X-Terra states, “This is a significant exploration breakthroughon a property that’s never been drilledand reinforces our expectations that a large epithermal system is present. While more in-depth geological work, which includes drilling is needed, X-Terra’s management believes that the 11 holes (1,499metres drilled) only covered a very small fraction of the targeted environment. Reaching a significant mineralized interval this shallow (from 107 metres to 143 metres, in GRG-20-012) is a milestone we were relentlessly pursuing after completing the limited field exploration programs based predominately on roadside trenching. The information obtained in this program will allow the detailed follow up on the Grog target but also allow X-Terra to refine and generate more high priority targets carrying the same geological characteristics to that of the Grog target. This provides a monumental shift moving forward.”
Adding these results and data to our database has resulted in the hypothesis that, hole GRG-20-012 may have cross-cut a north to north-east oriented lens. Strong intercept angles of mineralized quartz veins observed along the core suggest we are close to true thickness. Significant additional drilling will be required to define the exact dip and plunge of the mineralized lens and the true width and extent of this discovery.
The series of 11 holes is split into three clusters comprising of three to four holes distributed over a target area of about 1.6 kilometres following the North-East regional trend associated with the McKenzie Gulch regional fault.
HIGHLIGHTS FROM HOLE GRG-20-012 and GRG-20-013 – See PDF
Hole GRG-20-012: The mineralized interval is included in a clay rich and carbonate alteration zones centered on a complex sedimentary breccia which includes graphitic slivers. Hydrothermal and alteration aredeveloped mostly in porous sandstone and fine grain conglomerates. The pervasive and intense alteration seems composed mostly of clay mineral assemblages in association with carbonate, in addition to the quartz veining with open space filling and geodic textures. The associated sulfides assemblage composed of pyrite, arsenopyrite and marcasite (a low temperature type of iron sulfide) is mostly finely disseminated with percentage in volume increasing locally from less than 1% to 10% over metric intervals.
Hole GRG-20-013:Collared185 metres to the east has also cut a sequence of anomalous gold intervals with as best result 0.57g/t Au over 5metres. Mineralization is hosted in a similar context when compared to GRG-20-012. Another type of mineralization was also observed between 86,65 and 97 metres along the hole under the form of a pale yellow strongly argilized dyke of intermediate composition. The unit returned 0.08 g/t Au over 10.35 metres, including 0.14 g/t over 4 metres, associated with finely disseminated pyrite and arsenopyrite.
Further drill intercepts obtained over the Bellevue North area highlighted similar characteristics with the drill holes completed over the Grog showing, such as the argillic alteration and the conglomerate-sandstone assemblages, locally affected bybreccia. In this context, fracturing is mostly filled with quartz-carbonate veinlets instead of the quartz dominated ones as observed at Grog. Bellevue North is located about 600 metres south of Grog. These intervals demonstrate and reinforce the possibility that they were drilled on the periphery of a similar mineralized trend.
The detailed interpretation on a larger scale of all information gathered is ongoing and will provide the spatial orientation of the mineralized trend. X-Terra’s recentlycompleted detailed airborne magnetic and ground IP survey are being used to compare the drilling results and surface data in order to distinguish and model additional exploration and drill targets. Thus far, by using the surface exploration data, drillingresults and the improved 3D inversion mag model, which allows X-Terra’s team to carefully interpret rock units and structures down to a vertical depth of 300 metres. X-Terra has been able to identify 12 new exploration and drilling targets carrying similar geological characteristics. Based on what X-Terra now knows, the principal structure underlying gold occurrences corresponds to an area of about two kilometres by three kilometres and the individual targets identified within, correspond to twelve 500 metres segments highlighting varied orientation depending on local structural geometry.
While X-Terra now has a firm grasp, it will continue evaluating and understanding the geological sequence that is triggering the gold deposition process, the structural relations and controls within the Grog environment. The next phase of work will consist of substantiating the key geological characteristics of the Grog target over these newly identified targets that are all located within the interpreted hydrothermal epithermal system
Newly updated maps will be available on X-Terra’s website very soon
QA/QC and Drilling Contract
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. samples were assayed for gold by standard fire assay on 30-gramfractions with atomic absorption (TMT-G5B) or gravimetric finish (TMT-G5C) at Techni-Lab (S.G.B. Abitibi Inc.). In addition, the quality control protocol includes insertion of blank or standard every 10 samples on average, in addition to the regular insertion of blank, duplicate and standard samples accredited by Actlabs during the analytical process.
Some samples were sent to AGAT Laboratories where they were dried and crushed to 75% passing 10 mesh (2mm) (Code 200001), split to 250g and pulverized to 85%passing 200 mesh (75μm).Samples are then analyzed with four acid digest method (Code 201 070) with ICP-OES and ICP-OES Finish (per sample) for arsenic and silver. They are also analyzed for Gold by Fire Assay with ICP-OES (30g) (Code 202052)
X-Terra hashired the Logan Drillinggroup based out of Stewiacke in Nova Scotia. The hole diameter is NQ. Drilling took place from January 25 to February 21, 2020.
Grog and Northwest Properties
X-Terra has an option to acquire a 70% interest in the Grog Property andNorthwest property (see press releases dated April22, 2019 and April 30, 2019).
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
About X-Terra Resources Inc.
X-Terra is a resource company focused on acquiring and exploring precious metals and energy properties in Canada.
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 Grog and Northwest Properties, or if it does so, what benefits X-Terra will derive from 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’scontrol. These risks, uncertainties and assumptions include, but are not 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 circumstancesor otherwise, except if required by applicable laws
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
Rouyn-Noranda, Québec, J9X6M8
Telephone: 819-762-4101 | Fax: 819-762-0097