Aug 28 2015
Solvista Gold Corporation ("Solvista") is pleased to report that a first phase drill program on the Talbot property has commenced. The fully permitted program is planned to include between 10-15 holes totalling approximately 5,000 meters and will focus on four (4) areas within and around the historic, high grade, copper-gold-zinc-silver (Volcanogenic Massive Sulphide or VMS) Talbot Deposit.
The objective of the program is to discover, within close proximity to the Talbot Deposit, similar areas of high grade VMS (copper-gold-zinc-silver massive sulphide) mineralization.
The Company plans to test four (4) areas prospective for a high grade VMS discovery: 1) Talbot Deposit: main, footwall and north lenses where conductive extensions were identified by bore hole geophysics, 2) High Grade Gold Lens: several significant high grade historic gold-silver drill intercepts (5.2m grading 10.4g/t gold and 54.5g/t silver in hole TLS005 and 9.3m grading 8.2g/t gold and 88.4g/t silver in TLS012) located on strike and south of the Talbot Deposit, are associated with southward striking early-time channel bore hole anomalies, 3) EZ Zone: copper-gold-silver mineralization (2.6m grading 1.7% copper, 1.3g/t gold, 15.1g/t silver in historic hole HAR 085) is interpreted to be associated at the southernmost edge of a 400m long untested, north trending geophysical anomaly. 4) The North Target: interpreted to be a complex, 1,000m long geophysical conductor that is similar in appearance to the geophysical signature associated with the Talbot Deposit. Only two (2) historic shallow drill holes have been completed on this target intersecting highly anomalous copper mineralization along the "top edge" of large, multiple, strongly conductive buried anomalies.
Assay results from the drilling will be reported to the public once received from TSL Laboratories.
The historic high grade Talbot Deposit is defined as a stratabound, volcanogenic massive sulphide deposit consisting of several lenses of coarse grain to stringer to massive sulphides of pyrite, chalcopyrite, sphalerite and pyrrhotite in a quartzofeldspathic gneiss. The depositional environment is similar to that of present and past producing base metal deposits of felsic to mafic volcanic and volcaniclastic rocks in the Flin Flon - Snow Lake Greenstone Belt. Please refer to Solvista's previous news release dated August 6, 2015 for additional information on the Talbot Deposit or visit our website at www.solvistagold.com.
Solvista can earn a 51% interest in the Talbot Property from Hudson Bay Exploration and Development Company Limited (HBED), a wholly owned subsidiary of Hudbay Minerals Inc. by spending $6,120,000 on exploration expenditures over the next six (6) years. The first and second year expenditure commitments are $200K (completed) and $400K respectively with escalating expenditure commitments over the remaining years. The agreement provides that once Solvista has earned its 51% interest in the Property, Solvista (51%) and Hudbay (49%) will form a joint venture and Solvista will be the Operator of the joint venture. Provided Hudbay contributes its pro rata (49%) share of expenditures under the joint venture, it will have two (2) years from the date Solvista earns its 51% interest to purchase an additional 2% interest for a cash payment of $240,000 and either incurring expenditures over a two (2) year period equivalent to 2% of the joint venture expenditures made since the formation of the joint venture or paying such amount to Solvista in cash. If Hudbay acquires the additional 2%, it will become the Operator of the joint venture. Once a positive Feasibility Study has been completed and mining development has commenced, the Operator can increase its interest in the Property to 65% by paying the other participant a cash payment equal to the pro rata share of expenditures made by the other participant to reduce it to a 35% interest. The Operator would then fund the costs of development and will be reimbursed for 100% of the development costs including the 35% interest of the non-operator. Once the costs of development have been repaid, the parties will be reimbursed their pro rata share of expenditures made prior to the date development commences before net profits are distributed pro rata (please see Press Release dated April 23, 2014 and filed on SEDAR under Rockcliff Resources for additional information).
Additionally, the company submitted an application for financing through the Mineral Exploration Assistance Program sponsored by the Manitoba Government and received approval for approximately $160,000 in financing toward eligible expenditures at Talbot Property. It is anticipated that the eligible expenditures will be incurred by the present drill program and the company will receive the financing in full upon acceptance of the work completed.
Ken Lapierre P.Geo., President and CEO of Solvista., a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this press release.
For more information please visit our website at www.solvistagold.com.
Source: http://www.solvistagold.com/