Bowmore Exploration Ltd. is pleased to announce that it has signed an Option Agreement (the "Agreement") to acquire, from three private owners (The "Vendors"), 100% undivided interest in the Gilmour South, Louvicourt, Fab, and Flat Landing Brook properties (The "Projects").
These four Volcanogenic Massive Sulphide ("VMS") zinc-lead projects are located within the Bathurst Mining Camp in New Brunswick, Canada (See acquisition map: http://media3.marketwire.com/docs/Bowmore420.pdf).
The Projects are composed of a total of 55 claim units covering approximately 1,200 hectares and are located in Northumberland County, roughly 20 km south west of the City of Bathurst, accessible from Highway 430. The Projects are located within and/or contiguous to our recently acquired Brunswick Belt Project (see news release dated March 7, 2017).
Pursuant to the Option Agreement between the private Vendors and Bowmore Exploration Ltd., the Company may acquire 100% interest in the Projects and will have the exclusive rights to explore and develop the Projects over the next five (5) years in consideration of:
(i) Total cash payments of $216,000 to the Vendors as follows:
- $21,000 payable upon receiving the TSX Venture Exchange approval;
- $30,000 payable on the first anniversary date of the Agreement;
- $30,000 payable on the Second anniversary date of the Agreement;
- $45,000 payable on the Third anniversary date of the Agreement;
- $45,000 payable on the Fourth anniversary date of the Agreement and;
- $45,000 payable on the Fifth anniversary date of the Agreement.
(ii) Total issuance of 500,000 common shares of the Company on or before the following dates:
- 75,000 common shares upon receiving the TSX Venture Exchange approval of the Agreement;
- 75,000 common shares on the First anniversary date of the Agreement;
- 105,000 common shares on the Second anniversary date of the Agreement;
- 105,000 common shares on the Third anniversary date of the Agreement;
- 105,000 common shares on the Fourth anniversary date of the Agreement, and:
- 105,000 common shares on the Fifth anniversary date of the Agreement.
(iii) Issue up to an additional 450,000 common shares of the company if the following event occurs: 150,000 common shares within 5 days of the date on which the Company receives a positive preliminary economic assessment (The "PEA") in respect to these Projects, and 300,000 common shares within 5 days of the date on which the Company receives a positive feasibility study in respect to the properties.
(iv) Incur expenditures in the aggregate amount of at least $500,000 on or before the following dates:
- $50,000 of exploration work within the first anniversary date of the Agreement;
- $100,000 of exploration work on or before the second anniversary date of the Agreement;
- $100,000 of exploration work on or before the third anniversary date of the Agreement;
- $100,000 of exploration work on or before the fourth anniversary date of the Agreement; and
- $150,000 of exploration work on or before the fifth anniversary date of the Agreement.
At the end of this period, Bowmore will have acquired 100% interest in the Projects. The vendors will no Net Smelter Royalty (NSR) from the proceeds of any commercial production and the Vendors will have no area of interest. The Transaction is subject to the TSX Venture exchange approval.
The Projects host known mineral occurrences and are described below:
The Gilmour South VMS deposit, located to the south of the historical Brunswick No.6 Mine, is hosted within what is known as the "Brunswick Horizon". Bowmore previously acquired the Brunswick Belt that hosts the favorable Brunswick Horizon along strike. Massive to semi-massive mineralization occurs near the top of the Nepisiguit Falls Formation of felsic volcanic rocks as at the former Brunswick No. 12 and No. 6 mines. These two mines produced nearly 150 million tonnes grading 12% combined zinc and lead (Zn% + Pb%) over a fifty year period, with Brunswick No. 12 closing in 2013.
The best intersection in the Gilmour South deposit was in drill hole GS-99-22 that returned 7.98 metres of 9.61% zinc, 1.02% lead, 0.2% copper and 32 g/t silver. Historical drilling was performed on approximately 200 m centers.
The Flat Landing Brook VMS deposit is also hosted in the Nepisiguit Falls Formation, but is located to the west of the former Brunswick No. 6 mine and is interpreted to be a "Thrust Fault Repetition" of the Brunswick Horizon. Historical resources are estimated to be 1.27 million tonnes of 5.62% zinc, 1.29% lead, and 23 g/t silver.
The Louvicourt deposit, also known as the Nine Mile Brook deposit, contains two conformable massive sulfide lenses associated with a barite-rich iron formation. Historical resources are estimated to be 136,000 tonnes grading 90.86 g/t Ag, 0.96 g/t Au, 1.23% Pb, 1% Zn and 0.42% Cu.
The Fab Main deposit is located between the former Brunswick No. 12 and No. 6 mines and consists of disseminated to massive sulfides in quartz stringers. It is interpreted to be "VMS feeder zone" type mineralization. The Fab Main deposit comprises historical unclassified resources (non NI43-101 compliant) that are estimated to be 16.3 million tonnes grading 0.3% Cu, 0.6% Zn and 10.29 g/t Ag.
Mr. Paul Dumas, President of Bowmore, stated, "We are pleased with the acquisition of these new properties as they are a strategic compliment to the previously announced 'Brunswick Belt' acquisition. All four of the Projects contain known zinc-lead-copper VMS occurrences that are part of the historical Bathurst Mining Camp. We continue our efforts in acquiring additional ground in New Brunswick, which is one of Canada's best mining jurisdictions. This acquisition continues to diversify our portfolio by giving Bowmore significant exposure to base metal markets with a focus on zinc."
Jeff Hussey, P. Geo., is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein.