Mariner to acquire two Au properties in Newfoundland

2020-08-07 10:35 ET – News Release

Mr. John Williamson reports

MARINER ACQUIRES THE SHIRLEY LAKE AND MT. PEYTON NORTH GOLD PROPERTIES IN CENTRAL NEWFOUNDLAND, CANADA

Mariner Resources Corp. has entered into an option agreement to acquire 100-per-cent undivided interest in the Shirley Lake and Mount Peyton North gold properties in central Newfoundland, Canada.

The properties together consist of 51 mineral claims and encompass a land area of 12.75 square kilometres. The properties are located along the northwest-trending Mount Peyton structural lineament within the Mount Peyton intrusive suite and are accessible by travelling west on the Trans-Canada Highway for 15 kilometres from Glenwood, where the Mount Peyton North property is transected by the highway, and the Shirley Lake property is accessible from there by a network of ATV (all-terrain vehicle) trails.

Property highlights:

  • Rock samples on the property from angular quartz-arsenopyrite-breccia-bearing float boulders returned values of up to 44.0 grams per tonne gold.
  • Base-metal-bearing quartz vein float from the eastern shore of Shirley Lake assayed 25.0 grams per tonne gold.
  • Altered gabbro float from the southern shore of Shirley Lake assayed 1.88 grams per tonne gold.
  • Shirley Lake hosts a highly elevated lake sediment sample of 1,010 parts per million arsenic.
  • An induced polarization/resistivity survey conducted in 2005 outlined a zone of high resistivity that trends in an east-west direction, co-incident with the magnetic high. The geophysical survey provides evidence that the source of the highly altered, auriferous gabbro boulders may be on the property.
  • The company is compiling historic data and has applied for sampling and trenching permits to test historical defined conductors where it sees the opportunity to quickly advance to drill testing.

Mariner believes that the Exploits subzone, which runs 200 kilometres from Dog Bay southwest to Bay d’Espoir, has been neglected since the last major exploration campaigns in the 1980s. The last 40 years have seen incremental advancements in the understanding of gold mineralization in the camp. The sum of this knowledge is now coming together in discrete and effective exploration models the company believes will drive major discovery. Mariner intends to leverage this shift in understanding and to become one of the largest claimholders in the Exploits subzone.

The team at Mariner, with significant local experience and knowledge, has studied the entirety of the Exploits subzone and picked individual land packages for staking or joint venture where there is an opportunity for world-class discoveries and mine development. The company expects the viability of this strategy will become more evident as it continues to pursue project negotiations and unveil more assets in the Exploits subzone.

President John William commented: “The Mount Peyton linear is one of the most distinct structures crossing the Exploits subzone which are known focuses of mineralization in the Gander district. The grade and consistency of gold assays and anomalous magnetic data from Shirly Lake is indicative of the great potential of this area.”

Shirley Lake and Mount Peyton property geology

The properties are located within the Exploits subzone of the Dunnage zone, which is dominantly underlain by Newfoundland Geological Survey-mapped Silurian to Devonian Mount Peyton intrusive suite rocks and lesser Late Ordovician to Silurian siliciclastic sediments of the Badger and Botwood groups localized to the northern extent of the properties. The Mount Peyton suite is predominantly gabbro, crosscut by granitic, aplitic and tonalitic dikes.

The Shirley Lake property was originally explored by Noranda, which was brought to the area as a result of a 1,010-part-per-million-arsenic anomaly in lake sediments (Davenport et al., 1988). Prospecting activities have discovered numerous auriferous, sulphide-bearing boulders (Lewis, 2001), bringing even more focus to the area. There are three predominant rock types hosting mineralization in the area. Boulders consisting of altered gabbro with arsenopyrite plus or minus chalcopyrite/galena/pyrite/sphalerite, quartz vein float and silica-sericite altered plutonic rocks. Base-metal-bearing quartz vein float on the eastern shore of Shirley Lake has assayed 25.1 grams per tonne gold and altered gabbro float on the southern shore of Shirley Lake has assayed 1.89 grams per tonne gold (Evans, 2001b). An area of altered gabbro (biotite/sericite) breccia float assayed up to 44.0 grams per tonne gold at the northwest end of Shirley Lake (Evans, 2001b). Exposures 1.5 kilometres north of Shirley Lake near the SS zone consist of medium-grained gabbro, locally biotitic, cut by several 30-centimetre-scale miarolitic felsic dikes. In 2005, a magnetic survey was conducted and indicated a weak magnetic relief between the northwest and southeast part of the property, which may reflect a compositional change within the intrusive (Rubicon Minerals, 2005). In 2005, a pole-dipole induced polarization/resistivity survey was also conducted, outlining a zone of high resistivity that trends in an east-west direction, co-incident with the magnetic high. The geophysical surveys provide evidence that the source of the highly altered, auriferous gabbro boulders may be on the property as they lay within the magnetic and resistive signatures.

Follow-up work in the form of bedrock trenching is recommended in order to properly delineate the mineralization in the Shirley Lake area.

Transaction outlined

Under the terms of the agreement, the company may acquire a 100-per-cent interest in the property by issuing an aggregate of $2,000 cash and 575,000 common shares as follows:

  • Mount Peyton North — $2,000 upon signing and 200,000 common shares upon signing;
  • Shirley Lake — 300,000 common shares upon signing and 2,500 shares for each anniversary of years 6 to 20.

The vendors of each property shall retain a 2.0-per-cent net smelter return royalty (NSR) on the property, of which the company shall have the right to purchase half (1.0 per cent) for $750,000.

National Instrument 43-101 disclosure

Ian Herbranson, PGeo, is a consultant for the company, a shareholder and a qualified person as defined by NI 43-101. Mr. Herbranson supervised the preparation of the technical information in this news release.

About Mariner Resources Corp.

Mariner Resources is a Canadian mineral exploration company focused on the acquisition and development of mineral projects in Newfoundland, Canada. The company currently holds the Middle Ridge, True Grit and Great Bend projects, which cumulatively cover an area of 941 square kilometres. All three projects lay within the Exploits subzone and Gander River ultramafic belt (GRUB) of the Dunnage zone, which contain the majority of Newfoundland’s gold mineral occurrences and exploration efforts, including New Found Gold’s 2019 discovery of 92.86 grams per tonne gold over 19.0 metres near surface. The Exploits subzone and GRUB regions have been the focus of major staking and financing throughout 2020, with increased exploration activities forecasted in the area moving into 2021.

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