VANCOUVER, British Columbia, July 19, 2018 /PRNewswire/ -- War Eagle Mining Company Inc. (TSXV - WAR) ("War Eagle" or the "Company") is pleased to announce that it has completed the purchase of the Deloye Family Claims ("Deloye Claims" or "the Claims") located in the northeast corner of Teck and the northwest corner of Lebel townships, Ontario, 3.1 km north of the Kirkland Main Break. (Figure #1, #2 and #3.)
The Deloye Claims land package consists of eight patented mining claims, a total of 122 ha, with mineral rights on all eight claims and surface rights on four of the eight, bringing the current Goodfish Kirana land package to 3,418 ha from 3,296 ha. These claims contain the old shafts and trenches of the historical Kirana Kirkland Lake Gold Mine "Kirana Kirkland Mine", which stopped production in 1936. The reported historical grades for the Kirana Kirkland Mine from the Ontario Department of Mines Vol.1 LVII (1) include "narrow high-grade streaks of $20 to $150 per ton in gold. The 2018 estimated equivalent is between 30 g/t of gold and 145 g/t of gold.
Under the terms of the acquisition, War Eagle has agreed to:
- Pay to Diane Deloye ("Deloye"), the sum of one-hundred and fifty-five thousand dollars (CAD155,000) upon the closing of the Transaction. The Company also agrees to pay all reasonable legal fees.
- Grant to Deloye a 1.5% royalty based on net smelter returns) ("NSR" or "Royalty") on all mineral products produced from the Claims. The Company shall have the right to the buy-down or buyback 1% of the NSR for $1 million dollars as per terms of the NSR Agreement.
Danièle Spethmann, President and CEO of War Eagle stated: "We are very pleased to have come to an agreement with the Deloye family on the acquisition of these claims. It is expected that the historic Kirana Kirkland Mine, located within the newly acquired Deloye Claims will be a rewarding exploration endeavor for War Eagle. The Mine's historic shafts are located close to the intersection between the two major mineralized structures on our property, the Kirana Deformation Zone and the Goodfish Deformation Zone. Exploration on a small part of this land package was completed in the late 1980's and the rest of the claims have not been efficiently explored to any depth for more than 30 years. We look forward to exploring this prospective ground and anticipate that it will generate positive results for War Eagle."
History of the Deloye Claims
The patented claims and the surface rights have been owned by the Deloye family since the 1970's.
The historical records from the Ontario Department of Mines report that up to 1917, the La Belle Kirkland Mines Ltd. developed six shafts and trenches. Shaft No.1 on claim L1751 was the most developed with an inclined shaft to a depth of 300 feet. This shaft was subsequently deepened to 360 feet, with 1,150 feet of lateral work undertaken at the 100 feet and 250 foot levels. In 1933, Kirana Kirkland Gold Mines Ltd. reported that they had conducted de-watering and chip sampling of shaft and underground levels and also some surface muck samples were taken and assays begun but not completed. The mine was subsequently closed at the outbreak of World War II.
Between 1988 and 1990, Minnova Inc. drilled seven widely-spaced drill holes (KIR 1 to 7, totaling 1,637.5 m) and completed ground geophysics and soil geochemisty. Drill hole KIR-3 located north of Shaft No. 1 (Claim L1751) reported an assay of 21 g/t over 0.3 m near surface. No further exploration work has been undertaken on any of the claims since.
(1)Burrow, A.G. and Hopkins, P.E. Ontario Bureau of Mines. "Boston Creek Gold Area and Goodfish Lake Gold Area" Vol XXIII, Pt. 2, 1916
About War Eagle Mining Company Inc.
War Eagle is a TSX Venture Exchange listed company focused on the exploration of gold in northern Ontario, Canada. The Kirana-Goodfish property is located five kilometers from the center of the Town of Kirkland Lake, Ontario where over 40 million ounces of gold have been produced. The property is approximately 10 km long by 3 km wide (34 km2) with numerous historical gold showings, historic mines and mineralized deformation zones that have been under-explored with modern technology.
This news release was prepared by management of War Eagle, which takes full responsibility for its contents as it relates to War Eagle.
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 this release.
Forward-Looking Statements: This press release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking statements are based on certain key expectations and assumptions made by the Company. Although War Eagle believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because War Eagle can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in the Company's management discussion and analysis of the financial condition and results of operations for the year ended March 31, 2017 and the third quarter ended December 31, 2017, which are available at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and War Eagle undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
CONTACT: Danièle Spethmann, P.Geo, President & CEO, War Eagle Mining Company Inc., (647) 344-3433, firstname.lastname@example.org; Malcolm Burke, Director, War Eagle Mining Company Inc., (604) 220-2000, email@example.com; Joanne Jobin, Investor Relations Officer, War Eagle Mining Company Inc., (647) 964 0292, firstname.lastname@example.org
SOURCE War Eagle Mining Company Inc.