Casino Mining Corp. a wholly-owned subsidiary of Western Copper and Gold Corp., and Cariboo Rose Resources Ltd. take pleasure in announcing that they have signed a property purchase agreement dated July 29th, 2019.
Under the terms of the agreement, Casino Mining Corp. has agreed to buy the 311 mineral claims comprising the Canadian Creek Property owned by Cariboo Rose Resources Ltd. The Canadian Creek Property is located just adjacent to the Casino Project of Western Copper and Gold Corp.
The overall consideration to be paid to Cariboo Rose Resources Ltd. for the Canadian Creek Property will include the issuance of three million common shares of Western Western Copper and Gold Corp. (the “Shares”) at an estimated price of C$0.928 per Share for an aggregate acquisition price of C$2.78 million.
Potential Extension of the Casino Project: Through this acquisition, the major ground would be secured immediately adjacent to Western Copper and Gold Corp.’s Casino Project. It is believed that the Casino deposit is likely to extend into the Canadian Creek Property.
As part of the current drill program at the Casino deposit, the instant plan following closing would be to initiate drilling on the Canadian Creek Property in hopes of detecting more mineralization. A 700-m untested area between the closest drill-holes and the most westerly Casino drill holes on the Canadian Creek Property is the main target.
The closest four holes on the Canadian Creek Property to Casino project have reasonable potassic alteration to robust propylitic alteration, incipient leaching or leach capping, hypogene copper-gold-molybdenum mineralization, and weak enrichment, which are usual of that occurring at the external boundaries of a porphyry copper-gold-molybdenum deposit.
Additional Exploration Potential: The Ana Zone, located 1.5 km west of the main target, is an additional target for porphyry copper-gold-molybdenum mineralization. The historical drill holes testing the Ana Zone display consistent moderate-to-strong propylitic to potassic alteration that is linked with anomalous levels of molybdenum, gold, and copper.
Small bodies of Patton Porphyry and intrusion breccia exist inside the propylitic to potassic alteration, and are closely linked with mineralization at the Casino deposit. Also, the Ana Zone measures 1.5 x 1.0 km without any historical drill holes in the middle of the area of interest. Moreover, structurally controlled gold-bearing zones located in the northern half of this property are hosted by the Canadian Creek Property. These zones have a analogous style to the Coffee Project.
Strategic Land Package: The Canadian Creek Property is strategically located between Newmont Goldcorp’s Coffee Project and the Casino Project. The Canadian Creek Property shares a 12-km long east-west boundary on its north side with the Coffee Project and a 6-km long north-south boundary on its eastern side with the Casino Project.
The Coffee–Casino connector road also lies partly on these claims. It was discovered by the Yukon Government as part of the Gateway Project.
Paul West-Sells, President and CEO of Western Copper and Gold Corp. commented, “the acquisition of the Canadian Creek Project will considerably strengthen the Casino Project. It will add significant exploration potential, with a number of exploration targets with the potential to increase mineralization of the Casino project – particularly the initial heap leach.”
He continued, “by increasing the overall land package and increased border with the Coffee project, it will also further solidify the key position of the Casino Project in the region.”
The sale of our Canadian Creek Project to Western allows Cariboo Rose to maintain a strongly levered position in the development of the Casino Deposit while at the same time bringing focused and immediate exploration spending on the Canadian Creek targets. The enhanced potential for advancing not only the Casino Deposit but also in tying potential future infrastructure development to the Newmont Goldcorp Coffee Project is very significant.
Bill Morton, President and CEO, Cariboo Rose Resources Ltd.
Conclusion of the acquisition is conditional upon, among other things, receipt of all required regulatory approvals, such as approval of the TSX Venture Exchange and Toronto Stock Exchange.
Any shares issued under the new agreement will be subject to a four-month hold period pursuant to relevant securities laws.