NSGold, Globex reduce Mooseland royalty to 2%
2019-03-20 20:27 ET – News Release
See News Release (C-NSX) NSGold Corp (2)
Mr. Jack Stoch reports
NSGOLD CORPORATION AND GLOBEX MINING AMEND MOOSELAND GOLD PROPERTY PRODUCTION ROYALTY
NSGold Corp. and Globex Mining Enterprises Inc. have agreed to amend certain terms of their agreement dated April 14, 2010, whereby NSGold acquired 100-per-cent ownership of the Mooseland gold property and certain secondary properties from Globex.
The agreement originally provided for a gross metal royalty payable to Globex in an amount equal to 4 per cent of all metals produced from the properties. As well, NSGold was required to issue to Globex a number of shares equal to 5 per cent of the number of issued and outstanding shares of NSGold at the time any of the properties entered into production. NSGold and Globex have agreed to a reduction of the gross metal royalty from 4 per cent to 2 per cent, the elimination of the conditional share issuance and the issuance by NSGold of 1,745,408 common shares to Globex. NSGold will have 15,708,672 common shares issued and outstanding following the issuance of the shares, of which Globex will hold approximately 11.1 per cent.
The amendment to the agreement and the issuance of the shares are subject to regulatory approval, including that of the TSX Venture Exchange.
Mooseland gold property
NSGold’s principal asset is the Mooseland Gold Property located in Nova Scotia approximately 90 kilometers from the capital city of Halifax and 12 kilometers from the producing Moose River Consolidated Gold Mine operated by Atlantic Gold Corporation (TSXV:AGB). Atlantic Gold reported gold annual production of 90,531 ounces for 2018, the first year of operation for Moose River (see Atlantic Gold news release dated January 16, 2019).
Mining infrastructure on the Mooseland Property includes a three-compartment shaft sunk to a depth of 125 meters, a 218 meter long ramp reaching a depth of 50 meters and a 12,000 cubic meter settling pond.
Historic gold production from the Nova Scotia goldfields, referred to as the Meguma Terrane, exceeds one million ounces. Mooseland is the location of the first recorded gold discovery in Nova Scotia in 1858, and the Mooseland Property recorded total historical production from 1863 to 1934 of 3,865 ounces of gold recovered from 9,058 tons of crushed material (J. Bates, 1982).
The Mooseland claims cover approximately 2.5 kilometers of strike length along the anticlinal structure. The Mooseland gold deposit occurs within a typical Meguma structure with steeply dipping limbs. The gold bearing quartz veins at Mooseland occur on both limbs of the fold with similar widths and grades. Total inferred mineral resources for the Mooseland Property are estimated at 454,000 ounces of gold using a cut-off grade of 2.6 grams per tonne (see NSGold news release dated June 5, 2012). This estimate is based on drill core assay results from historic and recent drilling programs totaling 45,382 meters in 183 drill holes.
A summary of the June 2012 resource estimate is provided in the table below.
MOOSELAND SUMMARY OF INFERRED MINERAL RESOURCES
Cut-off grade Tonnes above Average diluted Ounces
(g/t) cut-off grade (g/t)
West Zone 2.6 1,460,000 5.52 259,000
East Zone 2.6 1,060,000 5.72 195,000
Total 2.6 2,520,000 5.60 454,000
NSGold holds the Mooseland Gold Property free and clear subject only to the 2% gross metal production royalty payable to Globex. The Mooseland gold deposit is comprised entirely of Crown owned land with no privately-owned portions. The equity market is currently valuing the Mooseland gold resources at less than CAD$3 per ounce (i.e. NSGold market capitalization per ounce of gold resource).
Qualified Person
Perry MacKinnon P. Geo., Chief Geologist for NSGold, a qualified person as defined by National Instrument 43-101, has approved the scientific and technical disclosure in this news release.
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