Under the terms of this agreement Sphinx acquires the Claims for a consideration that consist of:
— a payment of $35,000;
— the issuance of 1,000,000 common shares of Sphinx; and
— the grant of a 2% net smelter return royalty (“NSR”). Sphinx has the
right to purchase 1.5% of the NSR for $2,000,000.
These shares have a deemed price per share of $ 0.02 and will be subject to a four month hold period. The agreement is subject to the approval of the TSX Venture Exchange and other customary closing conditions.
The Project is located 110 km north-northeast of the town of Chibougamau with good road access. The Project is situated at the southwest extremity of a northeast trending gold-copper bearing corridor at the northern limit of the Frotet-Troilus greenstone belt. This corridor contains the Troilus Mine (25 km northeast of the Project) which was operated by Inmet Mining Corporation (“Inmet”) from 1997 to 2010 and produced in excess of 2 million ounces of gold and 70,000 tonnes of copper. In addition estimated indicated mineral resources of 44 million tonnes containing 1.8 million ounces of gold grading 1.27 g/t and 53,000 tonnes of copper grading 0.12%, have been reported by Sulliden Mining Capital Inc. (see Sulliden’s press release of May 25, 2016). Between the Troilus mine and the Project area, Muscocho Explorations Ltd. (“Muscocho”) reported in 1987 mineralization in trenches and drillholes. Highlights include one drillhole that returned 2.26 g/t Au over 5.40 metres
A helicopter-borne magnetic and radiometric survey performed by Soquem Inc. and Inmet in 2000 (Sigeom GM 59797) aimed to discover deposits similar to the Troilus Mine. A first mineralized boulder was discovered along the southwest extension of gold-bearing corridor between the Troilus Mine and the Muscocho showing. Prospecting work by Tectonic identified 13 additional mineralized boulders within an area 220 m by 45 m trending to the northeast within the corridor. The analysis of the boulders, anomalous in gold, revealed values up to 1.57 g/t Au. The boulders are angular, mineralized uniformly and majority of the boulders are greater than one metre in diameter. They contain 1 to 5% disseminated pyrite, 2 to 5% sericite and traces of magnetite. There is also 1 to 2% garnet indicating the high grade metamorphic nature of the rock.
Sphinx and Tectonic have designed and approved an exploration program totalling $136,640 that is scheduled to commence this summer. The program will consist of till sampling followed by ground magnetic and induced polarization geophysical surveys that will aim to identify the bedrock source of the mineralized boulders and define targets within this high grade metamorphic environment.
The technical information presented in this press release has been approved by Normand Champigny, President and Chief Executive Officer of Sphinx and a Qualified Person as defined by NI 43-101.
Tectonic is a mineral exploration company incorporated in Quebec and is wholly-owned by Jean Laforest, ing.
Sphinx is engaged in the acquisition, exploration and development of mining projects in Quebec, Canada which is recognized as an attractive mining jurisdiction worldwide.
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.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results and activities to vary materially from targeted results and planning. Such risks and uncertainties include those described in Sphinx’s periodic reports including the annual report or in the filings made by Sphinx from time to time with securities regulatory authorities.
President and Chief Executive Officer