Probe Metals Inc. ("Probe" or the "Company") is pleased to announce that it has entered into a binding option agreement with Richmont Mines Inc. ("Richmont"), whereby Probe may earn a 60% interest in the Monique Property (the "Monique Property"), located 25 km east-southeast of Val-d'Or, Québec. The Property is comprised of 22 mining claims and will be part of the Company's Val-d'Or East Project ("Val-d'Or East").
The Company is also pleased to announce that it has acquired a 100% undivided interest in the Boudrias Property (the "Boudrias Property") comprising 12 mining claims staked by Mr. Dean Boudrias, a Val-d'Or prospector. The Boudrias property represents the northern extension of the Monique Property and the eastern extension of the Bonnefond North property, recently acquired from QMX Gold. The consolidated Val-d'Or East land package now stands at 236 square kilometres.
Figure 1 - Val-d'Or East Project
The highlights of the Richmont agreement are as follows:
- Probe may earn a 60% interest in the Property by spending an aggregate of $2,000,000 on exploration expenditures over 4 years;
- Upon completion of the earn-in requirement, a joint venture will be formed with Probe holding a 60% joint venture interest and Richmont owning a 40% joint venture interest;
- Thereafter, each party will be required to contribute to any further programs pro rata according to its joint venture interest. Should a joint venture party fail to make any of its required program contributions, its interest will be diluted accordingly. If a party's joint venture interest is diluted below 10%, its joint venture interest will be converted to a 2% NSR.
Probe will be the operator of exploration programs on the Property.
About the Monique Property:
The Monique property is located 25 km east of Val-d'Or, in Quebec, and consists of 17 claims and one mining lease covering a total area of 546 hectares in the Louvicourt township. The property hosts a current inferred mineral resource of 107,500 tonnes at a grade of 4.88 g/t for 16,850 ounces of gold.
Gold mineralization on the Monique property is mainly associated with three deformation zones that cross the property with an orientation of 280° and a 75°- 80° dip to the north. Gold mineralization is defined by a network of quartz/tourmaline/carbonate veins and veinlets with disseminated sulphides in the altered wall rocks. Free gold is frequently observed in the veins. A total of 12 gold zones have been observed on the property over the years.
Some mineralized zones have been defined from surface to a depth of 400 m and vary in width from less than 1 metre to up to 20 metres. Mineralized lenses extend laterally over few hundred metres. Gold is generally associated with 1% to 5% finely disseminated pyrite, and visible gold is common in the quartz and carbonate veins and veinlets.
The Monique open pit mine began commercial production in 2013 and ceased at the end of January 2015. A total of 0.58 Mt of ore was extracted at a grade of 2.53 g/t Au, from the surface to 100 metres depth for a total of 45 694 ounces of gold.
The technical content of this press release has been reviewed by Mr. Marco Gagnon, P.Geo, who is a "Qualified Person" within the meaning of NI 43-101, and Executive Vice-President and a director of Probe.