TomaGold Provides Details On Announcement To Acquire Majority Of Chibougamau Mining Camp Properties

Mining
Friday, September 15th, 2023 6:51 pm EDT

TomaGold Corp. has provided further details to the previous release dated Aug. 14, 2023, regarding the properties being acquired pursuant to the agreements signed with SOQUEM Inc., Chibougamau Independent Mines Inc. (CIM) and Globex Mining Enterprises Inc., which include a total of 20 mining properties that currently form the majority of the Chibougamau mining camp, in Quebec, Canada.

As previously disclosed, in order to acquire the properties, the corporation has committed to make global cash payments of $13,805,000, work commitments of $10,425,000, issue 16,625,000 common shares of TomaGold and issue an additional amount of $1,825,000 in common shares of TomaGold over a period of two to five years in accordance with the specific agreements. Upon signing, TomaGold will be required to make cash payments of $540,000, issue 6,625,000 common shares of TomaGold and issue an additional amount of $25,000 in common shares of TomaGold. TomaGold is currently in advanced discussions with potential financial and mining partners to finance the acquisition, exploration and development of these projects. A summary of the most significant agreements as well as a description of the most significant properties is included below.

David Grondin, president and chief executive officer of TomaGold, stated: “We are thrilled to have received conditional regulatory approval for these property acquisitions, which we believe have the potential to transform TomaGold’s profile going forward. This release also allows us to share with our shareholders and potential investors the most relevant technical information on the most significant properties being acquired, while highlighting their exploration potential. As mentioned in our previous press release, our intention is to further consolidate the Chibougamau mining camp, which will allow us to unlock its exploration potential and develop the camp more efficiently.”

The five west block properties cover the northwest corner of the Chibougamau mining camp and provide continuity between the west and north blocks of claims being acquired from SOQUEM.

Berrigan mine property

The Berrigan mine property consists of 16 claims totalling 483 hectares located four kilometres north-northwest of the town of Chibougamau. All claims are in good standing, with expiry dates of April 28, 2025.

Two historic National Instrument 43-101 technical reports have been reviewed and used to write the following sections on the Berrigan and Berrigan South properties:

1. Carrier, A. (2022), “NI 43-101 Technical Report for the Berrigan Mine Property, Chibougamau, Quebec, Canada. Val-d’Or: InnovExplo”;
2. Larouche, C. (2012), “Technical Review (NI 43-101 Compliant) & Evaluation of the Exploration Potential on the Berrigan Gold-Zinc-Silver Project, Chibougamau, QC: Chibougamau Independent Mines.”

Geological information was taken from both these reports along with recent exploration results taken from relevant Canadian Institute of Mining, Metallurgy and Petroleum news releases detailed below. The corporation has not verified the technical data taken from these sources but views the information as relevant and reliable. The corporation plans to complete a full evaluation of all of the properties being acquired and prioritize exploration to follow up on significant historic results.

Geological setting and mineralization

The property is located within the Archean Abitibi subprovince of the southern Superior province in the Canadian Shield. The property provides the corporation with a strategic land position in the Chibougamau mining camp in the northwestern part of the Abitibi greenstone belt. The property potential is supported by favourable geological and structural setting and the presence of well-documented metallogenic and lithotectonic elements such as the layered mafic-ultramafic sills of the Cummings complex, felsic volcanic and volcanoclastic rocks of the Blondeau formation, and other structures and alterations.

Six priority polymetallic mineral occurrences have been identified on the Berrigan property: the Main zone (zinc-gold-silver plus or minus lead), South zone (Zn-Ag plus or minus Au), East zone (Zn-Ag plus or minus Au), Morrison (copper-zinc), Wedge (Cu-Zn) and Berrigan-Sud (Ag).

The genesis of the polymetallic mineralization on the property has been described as either VMS (volcanogenic massive sulphide) or epithermal; however, the presence of both types or a hybrid model may be needed to explain the different styles of documented mineralization. Regardless of the origin of the sulphides on the property, the primary control on mineralization appears to be structural.

The mineralization consists of dissemination, stringers and breccia. Within the breccia, silicified fragments of wall rock are surrounded by quartz-calcite and sulphide and are locally cut by later quartz stringers. The orientation of the fractures is quite variable within the deformation corridor, crosscutting the mafic-ultramafic intrusion (Roberge sill) and the volcaniclastic rocks of the Blondeau formation.

Exploration

The initial showing was discovered in 1929 and the property has been explored by a variety of companies since.

Significant exploration since CIM acquired the property in 2013 includes induced polarization and mag geophysical surveys in 2013, surface mapping and channel sampling in 2017, and drilling in 2013, 2016 and 2022.

Surface mapping and channel sampling focused on three zones, the East, South and Main zones.

The East zone was mapped to a 1:50 scale. The outcrop comprises a semi-massive mineralized horizon (sphalerite-pyrite-pyrrhotite-galena) with an average width of 1.5 metres in a serpentinized-carbonatized-pyroxenite, containing fair amounts of pyrite-pyrrhotite and sphalerite within the sheared areas. This mineralized horizon is dislocated in metric blocks along a shear corridor oriented N250 to 260 degrees and dipping 60 to 70 degrees north. The mineralized horizon as well as the shear zone were sampled and a total of 15 samples were collected.

On the South Berrigan showing, several historic trenches were excavated on mineralized shears on the northern edge of Berrigan Lake. These trenches were mapped and 10 samples were collected. The type of mineralization is identical to the one observed on the East zone, disseminated to semi-massive pyrrhotite-pyrite-chalcopyrite-galena within shear zones oriented N070 degrees to N080 degrees to N040 degrees.

The East and South showings are embodied within east-northeast-west-southwest shear zones located in a corridor exhibiting an average width of 60 m and a lateral extension of at least 750 m. Within this corridor, several mineralized showings are exposed by historical trenches.

On the Main zone, geological and structural mapping has confirmed that most of the outcrops consist of pyroxenite and dunite belonging to the Roberge sill. The pyroxenite is massive, medium-grained, and either not magnetic or only slightly so, whereas dunite is finer-grained, strongly magnetic and occasionally displays primary bedding parallel to its contacts. A mafic volcanic unit occupies the northern and northeastern parts of the mapped area. This unit is associated with sulphide-rich exhalites (pyrite, pyrrhotite and sphalerite with traces of chalcopyrite). Mineralized zones not associated with exhalites are generally associated with shear zones having two preferential directions: north-northeast (N020 degrees to N040 degrees) and north-northwest (N330 degrees to N340 degrees). Sampling and assaying of 44 channel samples confirmed the polymetallic exploration potential of the mineralization on the Berrigan Main zone.

On Sept. 6, 2017, and Oct. 2, 2017, CIM issued two press releases indicating results of channel sampling on the Berrigan mine property, with significant results herein.

Historic drilling includes 306 diamond drill holes for 41,288 m completed by seven different companies between 1950 and 2022. Significant results from the 306 holes are listed in the attached table.

The property has been the subject of more than one historical estimate. Met-Chem Canada Inc. prepared the most recent of these in April, 2001, in a report titled “Pre-feasibility study: Etude Conceptuelle, Projects Berrigan and Tortigny” by Chuinard et al. In the report, a resource estimate completed using polygonal estimation techniques stated 1,388,915 tonnes of material grading 3.17 per cent Zn and 1.77 grams per tonne Au on the main Berrigan mine zone. No resource classifications were given for the resource (GM61359).

The mineral resource estimate above is historical and was not completed to National Instrument 43-101 standards. The qualified person has not completed sufficient work to classify it as current. Significant data compilation, redrilling, resampling and data verification may be required by a qualified person before the historical estimate on the project can be classified as a current resource. The corporation is not treating this as a current mineral resource.

Berrigan South property

The Berrigan South property comprises 23 claims covering 1,134 hectares contiguous and south of the Berrigan mine claims. All claims are in good standing, with expiry dates of April 28, 2025.

The Berrigan South mineralization is located about 200 m southeast of the Main Berrigan deposit and shows similar geologic, structural and geometric complexities as the Main zone and is generally thought to represent VMS-style mineralization (pyrrhotite, sphalerite, chalcopyrite, galena) remobilized within an east-west fault structure. Historic exploration has consisted predominantly of diamond drilling, including 28 drill holes completed by five different companies between 1963 and 1975, and geological mapping and sampling.

Lac Antoinette and Lac Elaine properties

The Lac Antoinette property consists of 11 claims totalling 436 hectares. All claims are in good standing, with expiry dates of April 28, 2025, to June 20, 2025.

The Lac Elaine property consists of 27 claims totalling 1,238 hectares. All claims are in good standing, with expiry dates of Jan. 20, 2025, to May 17, 2026.

Together the Lac Antoinette and Lac Elaine claims cover the westward extension of the geological rock unit in which the Berrigan Zn, Au, Ag deposit is found. Numerous strong conductive zones have been indicated on the claims by airborne geophysical surveys.

Late in the summer 2021, shoreline prospecting and mapping were completed at the Lac Antoinette and Lac Elaine properties. Anomalous copper values were reported in six grab samples on the two properties. During the summer of 2022, prospecting and sampling were performed over the property. The work performed included beep-mat geophysics, reconnaissance mapping, sampling for base metal, gold and silver, as well as sampling a number of rocks for whole rock geochemistry.

Gwillim property

The Gwillim property consists of 24 claims totalling 1,264 hectares in Barlow and McKenzie townships, and surrounds Globex Mining Enterprises’ Lac Gwillim property, which is also the subject of an acquisition agreement between TomaGold and Globex. All claims are in good standing, with expiry dates of Jan. 7, 2025, to Dec. 16, 2025.

The property covers approximately 4.5 km of the Lac Gwillim shear zone. It comprises three gold-bearing vein showings: Wright-Hargreaves Gwillim, Lac Gignac-East and Barlow McKenzie-West, a gold, copper and zinc showing. Exploration on the property started in 1950 on what is now the Wright-Hargreaves showing when an area was stripped and sampled. Since then, sporadic exploration programs were completed by a variety of companies between 1950 and 1984 including 14 short drill holes with limited sampling. Recent exploration has included airborne geophysics and, during the summer of 2022, prospecting and sampling.

The seven east block properties cover portions of the east portion of the Chibougamau mining camp and contain the historic Grandroy, S-3, Goldfields, Kokko Creek and Bateman Bay mines, and parts of the historic Copper Cliff and Jaculet mines. Aside from the seven historic mines on the properties being acquired, the properties are also adjacent to a further 14 historic mines.

Geological and exploration history for the east block properties, including historic production, was taken from a report titled “Technical Review and Evaluation of the Exploration Potential of the Lac Chibougamau Mining Properties in McKenzie, Roy, Obalski and Lemoine Townships,” written by Mr. Larouche in August, 2012, for CIM. Recent exploration results were taken from relevant CIM news releases detailed below. The corporation has not verified the technical data taken from these sources but views the information as relevant and reliable. The corporation plans to complete a full evaluation of all of the properties being acquired and to prioritize future exploration to follow up on significant historic results.

Kokko Creek property

The Kokko Creek property consists of seven claims totalling 190 hectares, which lies on the north shore of Dore Lake between the Quebec Chibougamau Goldfields and Virginia Option properties. All claims are in good standing, with expiry dates of Sept. 5, 2026, to Oct. 28, 2026.

The Kokko Creek showing was first discovered in 1906 and explored by a variety of groups until 1958 when Campbell Chibougamau Mines sunk a vertical shaft to 593 feet. Records indicate that during the period 1959 to 1975, 745,169 tons grading 1.15 per cent Cu and 0.24 g/t Au were mined.

The mineralized zone occurs along a N110-degree-east-trending, steeply southwest-dipping shear zone injected by a quartz-feldspar porphyry dike. Mineralization extends along strike for less than 600 metres and locally reaches widths of up to 12 metres. Sulphide includes chalcopyrite, pyrrhotite, pyrite and minor sphalerite. Chloritization, silicification and carbonatization are the most common types of alteration.

Surface trenches exposing zinc-copper-silver-gold-molybdenum values over widths of five to six m were confirmed by subsequent drilling which intersected wide zones of porphyry copper-style disseminated copper and molybdenite mineralization, which has developed within the upper part of the Lac Dore complex in the gabbroic anorthosite and granophyre. The mineralization is present over a surface of 1.5 square kilometres and consists of tension fractures with veinlets of quartz-pyrite, quartz-pyrite-chalcopyrite and quartz molybdenite.

No significant amount of exploration work has been undertaken on the property since its acquisition by CIM in 2013.

Quebec Chibougamau Goldfields property

The Quebec Chibougamau Goldfields property consists of seven claims totalling 188 hectares, which lies on the north shore of Dore Lake between Kokko Creek and Cedar Bay mines. All claims are in good standing, with expiry dates of Oct. 28, 2026.

The first mining activity on the property was when a shaft was sunk in 1956 and Patino Mining initiated mining and milling of the ore. In 1970, Campbell Chibougamau Mines acquired the property and put a decline under the surface pillar of the main zone. This surface pillar (H zone) was mined by open cut. Production from 1970 to 1974 is reported at 264,000 tons grading 1.74 per cent Cu and 3.08 g/t Au.

No significant amount of exploration work has been undertaken on the property since its acquisition by CIM in 2013.

Copper Cliff Extension property

The Copper Cliff Extension property consists of seven claims totalling 91 hectares, which lies on the north shore of Dore Lake east of Cedar Bay mines. All claims are in good standing, with expiry dates of Feb. 10, 2025.

The Copper Cliff claims lie immediately east of the Copper Cliff shaft and cover part of the underground workings going eastward. During the period 1970 to 1974, 864,382 tonnes grading 1.69 per cent Cu, 0.96 g/t Au and 6.5 g/t Ag were mined from the Copper Cliff mine.

Mineralization

At Copper Cliff, as with most of the Cu-Au mines within the Lac Dore complex, the mineralization which has been mined is commonly associated with dikes referred to as mines dikes. These premineral dikes are injected into the deformation corridors and include grey dikes (fine grained, feldspathic) and mafic dikes (dark green colour, usually rich in chlorite). Postmineral sinistral strike slip faults result in very limited horizontal displacement of the mineralized zones.

Two different styles of mineralization have been identified at Copper Cliff and include:

Type 1: Highly foliated sulphide-rich veins (chalcopyrite, pyrite, magnetite, pyrrhotite, sphalerite and arsenopyrite) which form lenses up to 100 m long and up to five m thick.

Type 2: Horizontal extension fractures which crosscut the main foliation and which are quite limited in length (20 m) and in thickness (one centimetre to 50 cm).

At the end of CIM’s 2019 fall drilling campaign on Bateman Bay, one 461 m drill hole was completed on the Copper Cliff property.

Grandroy property

The Grandroy property consists of 15 claims totalling 768 hectares, which completely covers former mining concession 604 and is located 12 km east of the town of Chibougamau, in the southwestern quarter of Roy township. All claims are in good standing, with expiry dates of May 9, 2025.

The Grandroy showing was first discovered in 1946. Open-pit mining started in February, 1967, and ceased in May, 1968, due to the high stripping ratio. From 1970 to 1975, a spiral decline to a depth of 70 metres below the pit floor was used to extract further ore. A total of 345,000 tons grading 1.24 per cent Cu and 0.70 g/t Au were mined from the altered porphyry.

Tommy Zones property

The Tommy Zones property is covered by a large claim group forming a continuous prospective exploration package 10.8 km long by 3.6 km wide over Lac Chibougamau. The entire land package is geologically located within the Lac Dore complex. All claims are in good standing, with expiry dates of May 9, 2025, to Nov. 10, 2026.

The structural corridor contains gold mineralization hosted in individual zones of shearing ranging in thickness from one to 30 m. These zones of shearing are usually parallel, closely spaced, and showing good lateral and vertical continuity. Some of the anorthosite-hosted mafic dikes can also locally be found within the shear zones. These zones are referred to as T, S and K zones.

The mineralized zones on the Tommy Zones property were first discovered in the 1950s and have been drilled by a variety of companies and the S-3 zone was mined between 1985 and 1989 for a total of 420,943 tonnes grading 3.91 g/t Au and 0.4 per cent Cu.

Mineralization at the Tommy Zones occurs as sulphide stringers and/or sulphides in veins of quartz/carbonate-filled fractures and/or in zones of shearing within the anorthositic gabbro of the Lac Dore complex. Mineralization largely comprises pyrrhotite, chalcopyrite, pyrite with lesser amount of sphalerite and rarely galena. Locally, gold is found associated with the sulphides.

Bateman Bay property

The Bateman Bay (Au-Cu-Ag) mine and two former mining blocks of the former Jaculet mine constitute the present property composed of 15 mining claims totalling 353 hectares, located eight km east of the town of Chibougamau. All claims are in good standing, with expiry dates of Jan. 2, 2025, to Feb. 20, 2025.

Mineral production records show a modest, sporadic production between 1968 and 1977 totalling approximately 27,051 tonnes grading 1.81 per cent Cu, 1.58 g/t Au and 14.21 g/t Ag derived mostly from the A-3 zone.

Mineralization

Numerous mineralized zones were intersected by surface drilling and from underground workings on the Bateman Bay property. Seven lenses have been identified: A1, A-2, main A-3, A-4, A-5, C-north and C south. These zones oriented roughly 110 degrees are represented by intense alteration in sericite and chlorite. The mineralization is concentrated in lenses locally narrow but with a good lateral and vertical continuity. At Bateman Bay, the gold mineralization is found associated to pyrite with minor chalcopyrite. Pyrite is disseminated and also along stringers, it may represent 1 per cent to 50 per cent of the rock by volume and the gold does not appear to be directly correlated to the amount of pyrite. The copper (chalcopyrite) mineralization is uniform, but the gold values are more erratic.

The A-3 zone, the main mineralized lens at Bateman Bay, extends laterally for less than 600 metres and vertically to 300 metres. This structure has been opened and sampled on four levels.

The mineral resource estimate herein is historical and was not completed to NI 43-101 standards and does not include a resource classification. The QP has not completed sufficient work to classify it as current. Significant data compilation, redrilling, resampling and data verification may be required by a qualified person before the historical estimate on the project can be classified as a current resource. The corporation is not treating this as a current mineral resource.

Zone C, located one km northeast of zone A, has been drill tested to a depth of 200 metres and for a strike length of more than one km. Zone C consists of two parallel branches traced underground for hundreds of metres on different levels. The mineralization consists of pyrite and chalcopyrite.

In 2013, six holes were drilled at shallow depth to better understand the mineralization orientation of the C-3 zone. Two new drill holes were completed in 2016 at a vertical depth of 165 and 255 metres. BJ-16-16, the deepest hole drilled on the zone, returned 3.61 per cent Cu, 1.72 g/t Au, 11.90 g/t Ag and 0.022 per cent cobalt over 12.5 m. The true width of this intersection is unknown.

Since 2013, exploration at Bateman Bay has been focused on drilling the C-3 zone and discovering new targets on similar structures. In 2013, drilling was completed from 50 metres below surface to a vertical depth of 150 m. Then, in 2016, two holes were drilled at a vertical depth of 170 and 260 metres, respectively, below surface. Cobalt was also added at that time to be part of analytical metal package.

The true width of these intersections is unknown.

In September, 2017, CIM undertook a program of stripping on the up-dip projection of the C-3 zone which had been intersected in several drill holes. Subsequent channel sampling returned 3.6 per cent Cu, 31 g/t Ag and 422 ppb Au over 3.90 m over five consecutive samples and 2.53 per cent Cu, 11 g/t Ag and 396 parts per billion Au over 3.05 m over three consecutive channel samples, all perpendicular to strike within a wide zone of intense siderite alteration.

In 2019, CIM completed two drill programs for a total of 10 holes to extend the C-3 zone along strike and at depth. Holes BJ-19-19 and BJ-19-20 and also BJ19-23 to BJ19-26 did not intersect mineralization.

The true width of these intersections is unknown.

During the 2020 winter, three holes were drilled including the deepest hole drilled to date on C-3 copper and gold zone. Drill hole BJ-20-28 did not intersect mineralization.

The true width of these intersections is unknown.

This intersection in drill hole BJ-20-29 was the best gold result to date on the C-3 zone. The C-3 zone has encountered mineralization from surface to a vertical depth of 525 m and remains open at depth.

The property has a certificate of authorization (CA) for drilling on ice or drilling on a barge. Drilling can be completed on ice if winter conditions are favourable or drill from a barge during summer.

Virginia Option property

The Virginia Option property consists of four claims totalling 61 hectares. The property is bounded upon the northeast by the Kokko Creek mine property, on the south by the Chib-Kayrand mine, Merrill Island mine and Main Campbell mine, and farther to the west by the Obalski mine property. The property was explored between 1950 and 1973 including geophysical surveys, geological mapping and sampling, and diamond drilling. Minimal work has been completed since 1973. All claims are in good standing, with expiry dates of Sept. 5, 2026.

TomaGold has received conditional approval from the TSX Venture Exchange for these transactions. The common shares to be issued in relation with the agreements are subject to a resale restriction period of four months and one day.

The technical content of this press release has been reviewed and approved by Andre Jean, PEng, the corporation’s director of exploration and a qualified person under National Instrument 43-101. In conducting the review of 12 properties mentioned in this news release, the qualified person consulted and utilized various sources of information and data, including government publications, and historical reports and data provided to him by the vendor, Chibougamau Independent Mines. The corporation has not verified all the technical data taken from these reports and sources but views the information as relevant and reliable. The corporation plans to complete a full evaluation of all of the properties being acquired and to prioritize exploration to follow up on significant historic results.

About TomaGold Corp.

TomaGold is a Canadian mineral exploration company engaged in the acquisition, assessment, exploration and development of gold, copper, rare earth elements and lithium projects. TomaGold holds interests in five gold properties near the Chibougamau mining camp in Northern Quebec: Obalski, Monster Lake East, Monster Lake West, Hazeur and Doda Lake, as well as a 24.5-per-cent interest through a joint venture with Evolution Mining Ltd. and New Gold Inc. in the Baird property, located near the Red Lake mining camp in Ontario. In addition, it owns a 100-per-cent interest in a lithium property and in the Star Lake rare earth elements property, located in the James Bay region of Quebec.

We seek Safe Harbor.