CALGARY, Nov. 28, 2017 /CNW/ - PRIZE MINING CORPORATION ("Prize" or the "Company") (TSXV:PRZ) (OTCQB:PRZFF) (MQSP:GR:FRANKFURT) is pleased to announce it was issued a Mines Act Permit from the Ministry of Energy, Mines and Petroleum Resources of BC authorizing mineral exploration activities, including a drilling program, on its Toughnut Property.
Drill crew mobilization was initiated last week, and drilling has commenced on the first of four high-priority targets. A total of 1,700 metres of diamond drilling on 7 drill pads is being planned. This program is expected to be completed by December 15th, 2017.
Feisal Somji, Chief Executive Officer of Prize commented: "We are excited to end the year with this much-anticipated drilling program on the Toughnut Property. New targets identified through our summer exploration campaign and known mineralized intercepts from previous drilling will be tested during this program. With the drilling permit in hand for the Toughnut Property, we will finish the year both drilling and looking forward to our results from the recently completed drilling program on our contiguous Daylight Property."
The four high-priority targets were generated using a combination of ground magnetic survey, soil/rock sampling from our summer exploration program and historical data.
The location of a rock sample from the Gold Eagle showing within the Toughnut Property, taken during the summer 2017 program that assayed at 2.8 g/t Au will be tested as a high priority target. The location of historical drill hole VTN11-010 will also be tested. This hole returned 1.22g/t Au and 2.71 g/t Ag over 29.72 metres and included a higher-grade zone of 4.4g/t and 6.1g/t Ag over 2 metres (2011 Diamond Drilling Assessment Report on the Toughnut Property). A soil anomaly from the Company's summer program that returned 8,000 ppb Au (8 g/t Au), with several corroborating samples taken in the summer 2017 exploration program that returned assay values of in the range 200 ppb Au, will also be tested as a high priority target.
Lucky Drilling Ltd. of Castlegar, BC is engaged for both snow removal activities and drilling operations.
$1.15 Million Private Placement
Prize also announces that it intends to complete a non-brokered flow-through private placement financing for proceeds of up to $1.15-million. The private placement will consist of the sale of up to 2,300,000 units at the price of $0.50 per unit. Each unit will consist of one common share issued on a flow-through basis for the purposes of the Income Tax Act (Canada) and one-half common share purchase warrant. Each full warrant will entitle the holder to purchase one common share at a price of $0.65 per common share for a period of 24 months from the closing date of the private placement.
The proceeds of the private placement will be used by Prize to continue its drilling program on both the Daylight and Toughnut Properties in 2018.
Prize intends to close the private placement on or about December 5th, 2017. Prize may pay finder's fees consisting of cash and/or securities in connection with the private placement. The completion of the private placement is subject to Prize receiving all necessary regulatory approvals, including approval from the TSX Venture Exchange.
Jarrod Brown, P.Geo., a Qualified Person under NI 43-101, has reviewed and approved the scientific and technical information in this news release.
About Prize Mining Corporation
Prize is a Calgary-based junior mining issuer with offices in Calgary, Alta., and is listed on the TSX Venture Exchange. Prize is engaged in the acquisition, exploration and development of mining properties. Find out more at: www.prizemining.com.
