CRYSTAL EXPLORATION INC. (the "Company" or "Crystal") (TSX VENTURE:CEI) (OTCQB:CYRTF) is pleased to report a 100% project acquisition that contains the potential for diamond bearing kimberlites along with historical gold occurrences. The Project contains targets that require interpretation and ground geophysical surveying to isolate new priority kimberlite targets. The Project is near Crystal's 100% owned Muskox, Contwoyto and Hood Projects located in Nunavut, Canada.
The Project holds 4 gold occurrences named A3, FIN, Shallow Bay and Butterfly/Dune Gold. Each of the gold occurrences contains significant results from historical exploration. Highlights from historical exploration include:
- 63.09 grams per tonne gold ("g/t Au") over 4.86 meters ("m") (Butterfly/Dune gold occurrence; Drill hole 87-13 drilled by Cominco Ltd. 1987);
- 20.11 g/t Au over 4.55 m (Butterfly/Dune gold occurrence; Drill hole 93-01 drilled by Echo Bay Mines 1993);
- 38.35 g/t Au over 2.47 m (A3 Gold occurrence; Drill hole A-93-03 drilled by Echo Bay Mines 1993);
- 11.58 g/t Au over 3.05 m (FIN Gold occurrence; Drill hole F-93-12 drilled by Echo Bay Mines 1993); and
- 35.19 g/t Au over 3.6 m (Shallow Bay Gold occurrence; Drill hole S-3-84 drilled by Bow Valley Industries Limited 1984).
The A3, Fin and Butterfly/Dune gold occurrences are hosted in banded iron formation ("BIF") and the Shallow Bay gold occurrence is hosted in a quartz stockwork. All the gold occurrences have not been the subject of modern day exploration and have horizontal loop electromagnetic conductors ("HLEM") both adjacent and along strike which require follow-up exploration.
Historic exploration was focused on magnetic high signatures with associated HLEM responses. New exploration methods for iron formation-hosted gold that incudes Spectral Induced Polarization ("IP") surveys has not been applied at the Project.
Diamond bearing potential at the new project is evidenced by a recent High Resolution Airborne Magnetic Survey by Fluxgeo (1993) that identified 5 high priority kimberlite targets which require follow-up prospecting, sampling and ground geophysical surveying. During 2003, regional till samples recovered kimberlite indicator minerals including pyrope garnets, eclogitic garnets, chrome diopside, olivine, chromite and Ilmenite which require follow-up.
Crystal has signed a Property Purchase Agreement with North Arrow Minerals Inc. (TSXV: "NAR") that is expected to close within 60 days and is subject to TSX Venture Exchange approval. Agreed upon terms include: a $50,000 cash payment on closing and a $50,000 cash payment in December, 2018; 500,000 CEI commons shares on closing and 500,000 CEI common shares in December, 2018; a 1% GOR/NSR, Crystal can purchase half the royalty (0.5%) for $1 million at any time; 500,000 CEI common shares upon reporting an inferred resource greater than 250,000 gold ounces within an already established mineralized zone; and 500,000 CEI common shares upon reporting an inferred resource greater than 250,000 gold ounces outside of the established mineralized zone, but within the Area of Interest.
Jim Greig, President & CEO commented, "The new ground is complimentary to Crystal's projects and has the potential to provide more diamond targets while exploring the gold occurrences. Crystal's new and existing projects are located in a proven region for gold and diamonds as evidenced by the close proximity to the formerly producing Jericho Diamond Mine and Lupin Gold Mine. North Arrow has taken an equity ownership in Crystal that will provide value through exploration success and an opportunity for Crystal to leverage North Arrow's diamond expertise. We look forward to exploring and incorporating this exciting ground into the 2017 exploration plans."