Vancouver, British Columbia / TheNewswire / March 16, 2017- Gitennes Exploration Inc. ("Gitennes" or the "Company") - (TSXV: GIT) announces that a previously announced letter agreement (see news release dated February 16, 2017), which provides for the grant to Gitennes of the exclusive right to acquire an undivided 100% interest in and to Snowbird high grade gold project (the "Snowbird Project") has been accepted for filing by the TSX Venture Exchange.
Snowbird Project Highlights
The Snowbird Project is an advanced stage, high grade gold project covering 7,120 hectares which is located 20 kilometres west of Fort St. James, British Columbia. Fort St. James is a full service community providing infrastructure and skilled manpower. To the north of Fort St. James is Centerra Gold's Mt. Milligan copper-gold mine which hosts proven and probable reserves of 2.2 billion pounds of copper and 5.7 million ounces of gold and to the south of Fort St. James is New Gold's Blackwater development project that hosts reserves of 8.2 million ounces of gold and 61 million ounces of silver.
The Snowbird Project has seen little to no exploration since the late 1980's when three diamond drill programmes were completed bringing the total diamond drilling on the Project to 91 holes totalling 9,340 metres. The drilling was concentrated between two zones over 800 metres and left several zones untested including a new zone 1.5 kilometres north of the drilling.
Selected historical diamond drill results include:
- 23.9 g/t gold over 0.91 meters;
- 18.5 g/t gold over 2.44 meters; and
- 48.0 g/t gold over 1.0 meters.
(Readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon.)
The Agreement
The letter agreement entered into by the Company and Omineca Gold Ltd. ("Omineca"), a private British Columbia company, provides that Gitennes may earn a 100% interest in and to the Snowbird Project by making share payments in the aggregate amount of 12 million shares to the shareholders of Omineca and incurring certain exploration expenditures in the aggregate amount of $1.5 million, on or before September 30, 2020. Upon making the necessary share issuances and exploration expenditures, Gitennes will own 100% of the Snowbird Project subject only to a 2% net smelter returns ("NSR") royalty to a maximum of $1.3 million and reverting to a 1% NSR royalty with no cap thereafter. Finder's fees in the aggregate amount of $52,500 are payable by the Company prior to September 30, 2020 (if the option is exercised in full), which can be settled in cash or shares at the discretion of the Company.
About Gitennes Exploration Inc.
Gitennes is in the business of exploring for and advancing mineral deposits. The Company currently has two gold exploration properties, Hixon and Snowbird, both in British Columbia and has a 1% Net Smelter Returns royalty on the Urumalqui Silver Project in Peru.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by L. Mireku, MSc (P.Geo.), who is a "qualified person" within the meaning of National Instrument 43-101.
For further information on the Company, readers are referred to the Company's website at www.gitennes.com and its Canadian regulatory filings on SEDAR at www.sedar.com.
