Logan Resources Ltd. announces the commencement of exploration and planned drill programs for the Brik and Drum Projects, located in southeast Nevada and western Utah, respectively. The projects are the subject of a previously-announced Option Agreement (see Logan news release July 7, 2016) with Pilot Gold Inc. (“Pilot”). Under the Option Agreement, Logan can earn a 51% participating interest in four of nine properties (the “Properties”) by incurring US$1.0 million in total expenditures in the first 12 months after closing and by issuing 9.9% of its issued and outstanding common shares to Pilot upon completion of the first financing (see Logan news release August 18, 2016). Additional mechanisms are in place that would allow Logan to earn up to 80% in the selected projects.
Brik Project, Nevada
The Hidden Treasure target at the Brik Project represents a high priority exploration target for Logan; drilling is anticipated to begin before the end of October, 2016. An eleven-hole, 2,000 meter reverse-circulation drill program is planned with the objective to follow up on strong gold intercepts from the 2011 Pilot Gold drill program, as well as to test deeper resistivity targets generated by the CSAMT survey.
The Brik property is located in the Cedar Range of Lincoln County, Nevada. The nearest community is the town of Panaca, located 15 kilometers away. The property consists of 135 unpatented lode claims on public lands under BLM jurisdiction, owned by either Logan or Pilot.
Brik is one of several, low sulfidation epithermal gold and silver systems in southeastern Nevada that occur in an area of nested volcanic calderas. The claim block includes multiple exploration targets of which one, Hidden Treasure, will be the focus of Logan’s exploration program. Discovery outcrops at Hidden Treasure consist of gold-bearing quartz veins and breccias, which display evidence of multiple hydrothermal events in a structurally complex setting. The target centers on a prominent silicified knob that includes phases of milky quartz, chalcedonic quartz, and quartz breccia, covering an area roughly 200 x 200 meters. Drilling by Pilot in 2011 confirmed the presence of a significant, sub-horizontal mineralized zone at surface that averages 1-3 g/t gold over 10-30 meters width (PB-17, PB 24, PB-25)*. Drill holes also encountered deeper, higher grade gold mineralization probably controlled by steep structures (PB-19, PB 24)*. Please refer to Logan’s website to see the full results of the drill holes completed by Pilot Gold.
Taken together, evidence from outcrop and drilling indicates the Hidden Treasure target is open for expansion in all directions with good potential for additional mineralization at depth and along strike.
Drum Project, Utah
The Drum Project is located 50 kilometers northwest of Delta, Utah. The property consists of 87 unpatented lode claims, located on public lands under BLM jurisdiction. Five distinct targets have been defined on the basis of rock and soil geochemistry and detailed geologic mapping. Each target is associated with the presence of outcropping jasperoid, with sub-gram gold concentrations common and maximum values in the range of 3-6 g/t. Host rocks are Cambrian shale and limestone that correspond to the same stratigraphic sequence at the adjacent Drum Mine, which produced in the order of 85,000 oxide ounces in the 1980s. Logan is planning to commence a 15-hole, 2,150 meters reverse-circulation drill program in Q1 of 2017.
Logan believes the Drum property to be under-explored and highly prospective for discovery of a sedimentary rock-hosted, “Carlin-type” gold system. It represents a rare example of a recent, grassroots gold discovery with multiple, undrilled targets at surface.
The technical information within this document has been reviewed and approved by Dr. Craig S. Bow, Vice President Exploration for Logan. Dr. Bow is a Qualified Person as defined in NI 43-101.