Beauce Gold Fields (Champs D’Or en Beauce) is pleased to announce that two trenches excavated on the Rang Chaussgross section of company’s St-Simon-Les-Mine property located in the Beauce region of Quebec has cut into a faulted geological structure. This confirms the presence of a major geological fault previously inferred by geophysical surveys conducted in 2017 and 2018. Of interest, one of the trenches exposed a 19th century placer gold mining shaft.
Patrick Levasseur, President and CEO of Beauce Gold Fields, said, "It’s astonishing that for an area that witnessed important historical placer gold mining, the underlying geology was largely unknown. Confirming the existence of the fault line first indicated by geophysics, along with the surrounding mineralized rock, is a major geological discovery.” Mr. Levasseur added: “This corroborates our extensive use of modern geophysics that we believe narrows our exploration efforts to find the bedrock source of the gold-bearing placers of Saint-Simon-les-Mines."
Trenches cuts into major fault line confirming its existence
Under the supervision of Dr Marc Richer-LaFlèche, Ph.D. Geo of INRS, 13 trenches were excavated and 3 outcrops were stripped immediately north and south of the historical placer gold deposit. The purpose of the trenching was to expose the bedrock to document the presence of an inferred fault first detected with audiomagnetotelluric (AMT) geophysical surveys and to locate potentially mineralized zones that may explain the presence of placer gold in the Gilbert River basin and to locate its hard rock source.
The trenches also validated an electrical resistivity and high resolution induced polarization survey also conducted by Dr Richer-LaFlèche of INRS in 2014. The excavated trenches and stripping corroborated the results of the 2014 geophysical survey. Induced polarization anomalies correspond to volcanoclastites finely mineralized with pyrite and sometimes to black pyritic shales. Excavation of Trench 10008 shows the presence of faulted contact between volcaniclastic (south) and sedimentary (north) rocks. The faulted contact corresponds to a 35 cm thick zone of non-cohesive materials rich in quartz fragments. The volcaniclastic rocks, present south of the fault, are highly fractured. This structure, dipping to the south, could correspond to the fault detected by the AMT survey of 2017. On the edge of the fault, the volcanoclasites are extremely altered by the injection of veins of quartz-iron carbonates associated with a variable proportion of sulphides. The zone of quartz-carbonate veins has a thickness of 2.5 to 3m. This zone is observed in trenches 10008 and 10009. Fault material was bulked sampled and channel rock samples were sent to a laboratory for the analysis of gold and for other gold indicator minerals.
Exposed 19th century mining shafts is an attestation to the gold interest in the area
The excavation of trench 10009 exposed a 19th century placer mining shaft. Field observations have discovered six more shafts in the surrounding area. A Quebec Ministry of Mines 1898 report (J. Obalski) reported that lot 17 of the Chaussegross concession, which corresponds to the sector currently explored, belonged to miners Glover & Fry in 1870. No additional historical accounts were provided. The hard manual labor and capital required back then to dig shafts is an attestation to the gold interest in the area. In the 1960s, 150 meters to the south and to the east, the placer gold channel was industrially mined via a Yuba dredging operation.
Robert Gagnon, P. Geo., a qualified person as defined by NI 43-101, has reviewed and approved the technical information presented in this release.
The Company closed a private placement of 28,500 units ("Unit") at $0.10 per Unit for a gross proceeds of $28,500. Each Unit is comprised of one (1) common share and one (1) common share purchase warrant of the Company. Each Warrant will entitle the Subscribers to purchase one common share of the capital stock of the Company at an exercise price of $ 0.15 for a period of 24 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month and one (1) day holding period from the date of closing of the placement. The Company will use the proceeds from the private placement for general corporate purposes.
Mr. Lam Chan Tho, Director of BGF has subscribed for 100,000 Units. Following the completion of the Private Placement, Mr. Lam Chan Tho will own or exercise control or direction over, directly or indirectly, a number of Common Shares, representing approximately 3% of the issued and outstanding Common Shares of the Company.
The participation of Mr. Lam Chan Tho, in the Private Placement constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Policy 5.9 - Protection of Minority Security Holders in Special Transactions of the Exchange. In connection with this related party transaction, the Company is relying on the formal valuation and minority approval exemptions of respectively subsection 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the portion of the Private Placement subscribed by Mr. Lam Chan Tho does not exceed 25% of the Company's market capitalization. The Board of directors of the Company has approved the Private Placement, including the participation of Mr. Lam Chan Tho therein, with Mr. Lam Chan Tho abstaining with respect to his participation.