Vancouver, British Columbia--(Newsfile Corp. - June 21, 2018) - OSPREY GOLD DEVELOPMENT LTD. (TSXV: OS) (OTCQB: OSSPF) (the "Company" or "Osprey") is pleased to provide an update on its 2018 exploration, underway at the Caribou Gold Project ("Caribou") located in Nova Scotia, Canada approximately 80 kilometers northeast of the city of Halifax, Nova Scotia, and 8 kilometers ("km") north of Atlantic Gold's Moose River Consolidated mill site.
Caribou is one of 5 key projects controlled by Osprey, and is host to an historical mineral resource estimate. Activity at Caribou is the first systematic program undertaken at Caribou since the Company acquired an option to acquire the property in September 2017.
Exploration activity at Caribou includes:
- Sampling of historic core in areas prospective for mineralization within host rocks outside previously sampled veins,
- 5 holes sampled, for a total of 308 samples submitted for analysis,
- Currently trenching and channel sampling in the Elk Zone, north of the historic resource to test for possible extensions of near surface gold.
Sampling this core is a critical first step to determining Caribou's potential to host significant zones of potentially bulk mineable, open-pit extractable, gold mineralization in a cost-effective way. The results of this analysis will help the Company fully develop drill targets on the project, and test for disseminated mineralization within the host sediments suggested in historic reports and data. Previous exploration at Caribou, like much of the Meguma Terrane, was focused on high-grade vein-hosted gold, dismissing potentially mineralized surrounding host rocks. Recent exploration successes by other operators in the trend focus on disseminated, bulk mineable zones that encompass both higher grade veins and disseminated gold in the surrounding sediments (chiefly argillite).
"I'm pleased with the progress of our work at the Caribou Gold Project this year," said Company President Cooper Quinn. "Multiple styles and grades of mineralization at Caribou give Osprey several pathways to build a gold resource and show that the mineralizing events were significant in size, and support the project's potential to be amenable to open pit extraction. Data gathered during this program will also aid in exploration for additional vein-hosted mineralization, as well as the stockwork or "fissure vein" style mineralization at Caribou, which has historically provided some of the best grades and widths reported in the region."
Historic exploration reports for Caribou indicate there may be areas with low-grade gold in the host rock between veins.
Osprey has selected a total of five strategically located holes drilled by previous operators along the Dixon-Truro trend and Elk Zone at Caribou, which had previously only been sampled where mineralized quartz veins had been present, and has sampled broader intervals of host sediments.
This previously un-sampled core has been sent to the lab for analysis and results will be reported as they become available. See map below for drill collar locations of these holes.
Osprey is currently trenching within these same two known mineralized zones to test for possible extensions at surface, with a focus on the potential for mineralized sediments near surface. Trenches are being excavated to expose bedrock where Company personnel will map geology, veining, and structures and take channel samples to be submitted for analysis. Osprey will issue regular updates as work progresses and results are received.
About the Caribou Property
- Strategically located, 8 kilometres north of Atlantic Gold’s Touquoy Mine and Moose River Consolidated mill site and surrounded by Atlantic Gold claim holdings;
- Historic drill results in stockwork zones include 11.2 metres grading 10.86 grams per tonne (“g/t”) gold in Hole CM-98-01 and 9.8 metres grading 12.2 g/t gold in Hole SB-88-11;
- Project area includes broad areas of Halifax Group argillites, which overlie the quartzite/ argillite Goldenville Group, host rock for gold bearing quartz veining, and are largely unexplored at Caribou;
- Reported past production of over 100,000 gold ounces between 1869 and 1955, as reported in a historical technical report prepared for Scorpio Gold Corporation by Guy Mac Gillivray, P.Geo. of W.G. Shaw and Associates Limited in a report dated October 8, 2008 (the “Historical Report”);
- An inferred historic resource of 94,763 ounces of gold in 350,305 tonnes grading 8.81 g/t gold, uncut (the “Historic Estimate”); and
- Using a grade cap for gold of 47.0 g/t (to compensate for nugget effect) the Historical Estimate for the Caribou Gold Property is 350,305 tonnes grading 5.83 g/t gold, or 67,425 ounces of gold;
The reader is cautioned that a qualified person has not done sufficient work to classify this Historical Estimate as current resources and Osprey is not treating this Historical Estimate as a current mineral resource. While this estimate was prepared in accordance with National Instrument 43-101 and the "Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines" in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as consistent with current standards. The Historical Estimate is relevant to obtain a reference to mineral potential present on the property. The Company has not undertaken any verification of the historical data upon which the historical estimates are based on.
About Goldenville and Osprey
Osprey is focused on exploring five historically producing gold properties in Nova Scotia, Canada. Osprey has the option to earn 100% (subject to certain royalties) in all five properties, including the Goldenville Gold Project, Nova Scotia's largest historic gold producer. Goldenville hosts a current NI 43-101 Inferred Resource of 2,800,000 tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped) near the town of Sherbrooke, NS. All five properties in Osprey's current portfolio have a history of high-grade gold production. A copy of the Company's technical report titled "Technical Report on the Goldenville Property, Guysborough County, Nova Scotia Canada" prepared by David G. Thomas, M.Sc., P. Geo. and Neil Pettigrew, M.Sc., P. Geo. is available under the Company's profile at www.sedar.com.
A Quality Control/Quality Assurance program, including the insertion of Standards and Blanks, has been implemented. The 2018 exploration program on the Company's properties is performed under the supervision of Perry MacKinnon, P.Geo, Vice-President of Exploration of Osprey Gold Development Ltd. and a 'Qualified Person' under NI 43-101. Mr. MacKinnon has reviewed and approved the technical content of this release.
For further information please contact:
ON BEHALF OF OSPREY GOLD DEVELOPMENT LTD.,
Cooper Quinn, President and Director
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 this release.
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Osprey within the meaning of applicable securities laws. Osprey provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to exploration findings, results and recommendations, as well as those risks and uncertainties identified and reported in Osprey's public filings under Osprey's SEDAR profile at www.sedar.com. Although Osprey has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Osprey disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.