X-Terra Resources Completes Initial Payments Pursuant to the Exploration and Option Agreements for the Grog And Northwest Properties in New Brunswick
TSX VENTURE: XTT
ROUYN-NORANDA, QC, April 30, 2019 /CNW Telbec/ - X-Terra Resources Inc. (TSXV: XTT) (FRANKFURT: XTR) is pleased to announce the completion of the initial payments pursuant to its previously-announced amended and restated exploration and option agreements (the "Agreements") with NBGold Inc. ("NBGold") for the acquisition of up to a 70% ownership interest in the Grog and Northwest properties located in the province of New Brunswick (the "Properties"). X-Terra Resources paid an amount of $50,000 to NBGold and issued an aggregate of 2,000,000 common shares and an aggregate 400,000 common share warrants (the "Warrants") to the shareholders of NBGold as initial payment in order to obtain the right to explore and option the Properties (see X-Terra Resources' press release dated February 4, 2019 for more information on the amended and restated exploration and option agreements and the transaction with NBGold). Each warrant entitles its holder to acquire one additional common share X-Terra Resources at a price of $0.15 until October 30, 2020.
X-Terra completed its due diligence over the properties in October 2018 which confirmed the potential of a large disseminated gold system at Grog Brook. Samples were collected over a length of 390 non-continuous metres where results up to 2.94 g/t Au were obtained. The best gold values were obtained over the Northwest property (comprising the former Dome, Bonanza and Rim properties) and include 1,205.06 g/t Au at the Rim sector of the Northwest property, 149.97 g/t Au at Bonanza and 47.88 g/t Au at the Dome sector of the Northwest property.
Additionally, X-Terra sampled the Rim vein at regular intervals at the surface over 19.9 metres to confirm if gold mineralization is continuous. The average of the nine (9) grab samples returned 125.44 g/t Au over the 19.9 metres (see X-Terra press release dated Dec. 5, 2018, for details).
Lastly, X-Terra also completed a till survey over Northwest and the results highlighted significant gold grain anomalies in the vicinity of the Dome and Bonanza veins, from which two dispersion trains are stemming toward the East-north-east and North-east, related to two distinct glacial events. These results are very encouraging given that gold grain counts in dispersion trains are well contrasted with background, enabling dependable detection of mineralized veins.
Alex McKay, P. Geo of AMK Geoscience Ltd, registered in the Provinces of Nova Scotia and New-Brunswick, a consultant to X-Terra Resources, is the independent qualified person for the Grog Brook, Rim, Dome and Bonanza properties under National Instrument 43‑101 Standards of Disclosure for Mineral Projects ("NI 43-101") responsible for the technical contents of this news release, and has approved the disclosure of the technical information contained herein.
About X-Terra Resources Inc.
X-Terra Resources is a resource company focused on acquiring and exploring precious metals and energy properties in Canada.
This news release contains statements that may constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of X-Terra Resources, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the acquisition of an interest in the Properties pursuant to the Agreements, the development of the Properties, or if any of them do so, what benefits X-Terra Resources will derive. Forward-looking information is based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond X-Terra Resources' control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Financial Instruments" and "Risk and Uncertainties in X‑Terra Resources' Annual Report for the fiscal year ended December 31, 2018, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. X-Terra Resources does not intend, nor does X-Terra Resources undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.