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Harvest Gold Options High Grade Gold And Silver Project In Mexico From Evrim Resources Corp.

06/08/2017


Vancouver, British Columbia, June 8, 2017- Harvest Gold Corporation (TSX.V: HVG) (“Harvest Gold” or the “Company”) and Evrim Resources Corp. (TSX.V: EVM) (“Evrim”) are pleased to announce that they have entered into an Option Agreement whereby Harvest Gold can earn up to an 80% interest in the high grade Cerro Cascaron gold/silver project in Mexico. The project covers 69 square kilometers in an historic Colonial-era mining district in the prolific Sierra Madre Occidental precious metals belt of western Chihuahua State, Mexico (Figure 1).

The Cerro Cascaron property hosts a low to intermediate sulfidation epithermal gold bearing system and includes a high-grade gold vein field measuring approximately 20 square kilometers in area on the eastern third of the property. Veining has been mapped over 900 vertical metres, with classic textural evidence of hydrothermal boiling accompanying the highest gold grades. This boiling zone has been established in the upper 380 metres of the vein field. Beneath the boiling zones, silver and base metal rich veins and breccias provide additional exploration targets.

The property also contains a substantial silver rich breccia target (La Cascarita) located five kilometers west of the currently defined gold field. Much of Cerro Cascaron is yet to explored

Harvest Gold’s’ President and CEO Rick Mark states: “After an extensive eight-month search for a project we believe offers tremendous upside to our shareholders, we are pleased to announce the option to acquire Cerro Cascaron in the Sierra Madre Occidental belt in Mexico. Cerro Cascaron has the classic characteristics we believe the market will value: it has drill ready, high grade gold and silver targets; it has district-scale potential; it is in a mining friendly jurisdiction: and, it is situated in a world class mineral belt. Finally, Cerro Cascaron is undrilled.”

Mark further states: “Key to a successful option/JV agreement is a solid and open relationship. Our partner Evrim Resources has been excellent to work with in reaching this deal. Their team has years of market experience, knows the local environment well, is technically strong and are excellent operators. Their work in discovering and doing initial exploration at Cerro Cascaron is to our great advantage. I want to thank their CEO Paddy Nicol for his focus and fairness in the past two months in getting this deal done. We look forward to advancing Cerro Cascaron together.”

About the Cerro Cascaron Project

Cerro Cascaron’s setting and mineralization is similar to many epithermal deposits in the Sierra Madre Occidental, including Fresnillo PLC's La Cienega Mine in Durango, Goldcorp’s past producing El Sauzal gold mine and further south, First Majestic’s San Martin de Bolanos silver mine in Jalisco State). The property is approximately 55 kilometers southeast of Goldcorp Inc.’s past-producing El Sauzal gold mine and is one of the few unexplored and undrilled opportunities in the region.

Highlights of Evrim’s Exploration Programs

  • Veining has been mapped over 900 vertical metres, with classic textural evidence of hydrothermal boiling accompanying the highest gold grades.
  • Fourteen structurally-controlled epithermal gold-silver veins identified with strike lengths ranging from 70 to 1,980 metres and a cumulative strike length of over 11 kilometres delineated to date
  • Rock chip samples grade from <0.005 grams per tonne gold ("g/t") to 1,670 g/t gold in the upper part of the system*
  • The lower part of the system is characterized by silver and base metal rich veins with rock chip samples grading from <0.5 g/t to 599 g/t silver*
  • Mapping has defined competent quartz veins up to 1.5 metres wide and quartz breccia veins/quartz healed faults and stockwork zones up to 25 metres wide
  • Tourmaline rich breccias and veins with high grade gold values from 0.565 g/t to 39.7 g/t gold are present at the lowest elevations
  • Channel samples collected perpendicular to strike have returned grades of 19 g/t gold and 72.6 g/t silver over 0.8 metres within 2.6 metres grading 6.05 g/t gold and 28.3 g/t silver at the San Pedro vein, and 45 metres north along the vein, 10.5 g/t gold and 46.4 g/t silver over 0.9 metres within 4.3 metres grading 2.22 g/t gold and 10.9 g/t silver
  • Five kilometers to the west, the La Cascarita prospect contains intermediate sulphidation silver dominant veins and breccias up to three metres wide and range from 0.46 to a maximum of 982 g/t silver.

*Readers are cautioned that rock chip samples are selected samples and are not necessarily representative of the mineralization hosted on the property. Readers should refer to Evrim’ s press releases dated June 8 and August 17, 2016 for a full description of their exploration results.

Mapping to date has focused within the vein field and contains multiple north-south trending veins including the Serpiente Dorada, San Pedro, Julietta and Carabino veins. These north/south trending veins are cut by east-west and northeast-southwest trending structures. The upper levels of the veining occur at the contact between the Upper and Lower Volcanic Sequence.

Alain Charest, Evrim Resources' Vice President Exploration, Mexico, said: "The Cerro Cascaron project continues to impress with high grade gold and silver systems spread over large areas on the project. The channel sampling program has provided drill targets at San Pedro and Carabina, confirmed our understanding of the controls on high grade epithermal mineralization, and increased the cumulative strike length of the vein system. Sample results from the newly-recognized high-grade silver La Cascarita prospect demonstrates the district scale of the project with most of the property yet to be explored.”

Phase 1 Exploration Plans

A fully funded Phase 1 Field Program developed by Harvest Gold and Evrim is scheduled to begin shortly and will require approximately two months with a budget of approximately $225,000. Evrim’ s knowledgeable and experienced field crews will operate this program. The program will include the opening of two historic adits, detailed mapping, sampling and prospecting on the main vein field, La Cascarita, and a well altered and currently unexplored eastern extension of the vein field that lies across a river valley. The object of the Phase 1 program is to provide multiple drill targets for a minimum 3,000 metre diamond drill program in the fall of 2017.

About the Cerro Cascaron Option Agreement

Under the terms of the Agreement, which is subject to TSX Venture Exchange ("TSX.V") approval, Harvest can earn an initial 70% interest (the “Initial Interest”) in the Cerro Cascaron project by incurring $6 million in exploration expenditures, making $900,000 in cash payments and issuing 2,000,000 shares to Evrim over a four year period. Evrim will be the operator during the Initial Interest period.

Time Exploration (CDN) Cash (CDN) Shares
TSX.V Approval - - 1,000,000*
End of Y1 $1.0 million $200,000 -
End of Y2 $1.0 million $100,000 -
End of Y3 $2.0 million $100,000 -
End of Y4 $2.0 million $500,000 1,000,000**
TOTAL $6.0 million $900,000 2,000,000

* subject to a 12 month hold period and Harvest retains the right to repurchase the shares at a greater of the 20 day volume weighted average price or the issue price at the end of year one.

** Harvest will issue the greater of 1,000,000 shares or 1% of the issued and outstanding shares of Harvest.

Once Harvest has earned its Initial Interest it will have a 90 day period during which it can elect to earn an additional 10% (“Additional Interest”) for an aggregate 80% interest in the Project. To earn the additional 10% interest Harvest has to make a cash payment of $200,000 (or 200,000 shares at Evrim’s election) and fund a 43-101 compliant feasibility study (“Feasibility Study”) over a five year period. Minimum annual exploration expenditures of $2.0 million are required during this period and a $200,000 cash payment has to be made to Evrim if the minimum expenditures are not met.

During the Initial Interest period, Harvest can defer exploration expenditures at the end of the first, second or third anniversary for 12 months by making quarterly cash payments of $25,000 to Evrim and maintaining all other cash payments and claim maintenance costs.

If Evrim’s interest in Cerro Cascaron is diluted to 10% or less, its interest will convert into a 2% net smelter royalty (“NSR”). Evrim will retain the right to purchase half of a pre-existing 2% NSR from a property vendor for US$2.5 million.

Harvest will also be responsible for all other claim maintenance and underlying vendor costs.

Detailed information on the Cerro Cascaron project, including detailed maps are available at the Company’s website www.harvestgoldcorp.com.

Quality Assurance/Quality Control

Mr. Warren Bates, P. Geo (APGO#0211), the Company’s Director of Property Investigation, is the Qualified Person for this press release for the purposes of National Instrument 43-101, and has reviewed and approved the technical information herein. Evrim Resources has advised that their quality control procedure is as follows: Samples were delivered to ALS Global in Hermosillo, Sonora for sample preparation and to the ALS laboratory in North Vancouver for analysis. The Hermosillo facility has ISO 9001:2008 certification while the North Vancouver facility has ISO/IE 17025:2005 certification. Blank samples were inserted into the sample sequence for all channel samples with noted visible gold with no indications of contamination. Samples were assayed for gold by 30 gram fire assay and multi-element analysis by aqua regia and four-acid ICP analysis. Selected samples with coarse or visible gold were re-analyzed by 50 gram screen metallic assay.

About Harvest Gold

Harvest Gold is a gold and silver focused mineral exploration company with an experienced board of directors and management whose collective geological and financing experience exceeds 200 years. Harvest currently holds three fully registered mineral concessions on properties in the Republic of Suriname: the Goliat-Tibiti, Gonini River and Oelemari concessions.

About Evrim Resources

Evrim Resources is a mineral exploration company whose goal is to participate in significant exploration discoveries supported by a sustainable business model. The Company is well financed, has a diverse range of quality projects and a database in Mexico and portions of southwestern United States. The existing projects, and generation of quality exploration targets and ideas, are advanced through option and joint venture agreements with industry partners to create shareholder value. Evrim’s business plan also includes royalty creation utilizing the Company’s exploration expertise and existing projects.

ON BEHALF OF THE BOARD OF DIRECTORS

Joel Matheson,
Director
Harvest Gold Corporation

For more information please contact:

Rick Mark or Jan Urata
@ 604.682.2928 or info@harvestgoldcorp.com

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.