Commander Options Baffin Gold Property Nunavut to Kivalliq Energy
VANCOUVER, BC - Commander Resources Ltd. ("Commander") (CMD:TSX-V) is pleased to announce that it has entered into an option agreement with Kivalliq Energy Corporation (TSX-V: KIV) (“Kivalliq”) allowing Kivalliq to acquire a 100% interest in Commander’s Baffin Island Gold Property in Nunavut Territory, Canada. Commander has also entered into a data sales agreement with Kivalliq with respect to regional geoscience data held by Commander pertaining to additional lands held 100% by Kivalliq. In addition to other consideration further outlined below Commander will retain a 0.25% to 0.5% NSR on the grounds optioned from Commander and will be granted a 0.25% NSR on Kivalliq’s regional lands. The combined area of the Baffin Gold Property is 4089.8 square kilometres.
Kivalliq’s new Baffin Gold Property (“Property”) is comprised of consolidated mineral tenure located approximately 230 kilometres southwest of the community of Clyde River on Baffin Island, in the Qikiqtani region of Nunavut. The Property comprises fifteen prospecting permits, six crown mineral claims and two Mineral Exploration Agreements (MEA) with Nunavut Tunngavik Inc. (NTI) on Inuit Owned Land parcel BI-35. The property totals 408,981.6 hectares and covers 160 kilometres of the Foxe Fold belt on central Baffin Island, one of the largest undeveloped greenstone-iron formation gold belts in Nunavut, Canada.This represents a district-scale land package covering an entire Proterozoic gold belt with geological and structural similarities to multi-million ounce gold mines in Nunavut (i.e. Meadowbank, Lupin) as well as the prolific Homestake mine in South Dakota. Previous exploration has identified numerous prospects along 140 kilometres of strike length, with high-grade gold occurring in multiple settings: silicate and sulphide iron formation; shear zones and quartz veins hosted in granodiorite, meta-volcanics and meta-sediments.
- Large land position controlling an entire gold belt
- Covers a strongly mineralized gold system hosting known high-grade gold occurrences in multiple geological settings: iron formation, shear zones, quartz veins, metasediments and metavolcanics
- Over $25 million* of exploration data and extensive geoscience databases from BHP-Billiton, Falconbridge, Commander Resources and AngloGold Ashanti exploration programs perfomedperformed between 2001 and 2011 (*based on publicly disclosed reports)
- An existing camp, tidewater access and two 1,200 m DEW Line airstrips will help to accelerate future work programs
- Only 158 drill holes to date (<150 m depth) along entire belt, focused mostly on four prospects
- 61% of historic drill holes returned intersections of > 1.0 g/t Au;
- Best three drill intercepts to date:
- 21.3 g/t Au over 4.2 m,
- 10.2 g/t Au over 4.5 m and
- 9.2 g/t Au over 6.0 m
- 22.3% of historic surface rock samples taken were > 0.5 g/t Au, including 1380 g/t Au;
- Best three channel samples to date:
- 373.9 g/t Au over 0.49 m,
- 241.3 g/t Au over 0.25 m and
- 173.0 g/t Au over 0.46 m
Kivalliq’s exploration priorities include an immediate review, compilation and reinterpretation of all geological and exploration data to develop integrated structural geophysical and geochemical targeting models. Initial field work during the summer of 2017 will systematically explore the gold belt and ground truth newly developed models.
Kivalliq has been granted an option to earn 100% of Commander’s Baffin Gold Property which includes 6 mineral claims (5,948 hectares) and a recently signed 2017 MEA with NTI on two blocks within Inuit Owned Land parcel BI-35 (8,105 hectares).
Under terms of the Baffin Gold Property Option Agreement:
- Commander will receive a cash payment of C$10,000 upon execution of the agreement and an aggregate of 500,000 Kivalliq shares within 12 months of execution of the agreement.
- Kivalliq will fulfill Commanders Year 1 obligations to NTI under the MEA on IOL BI-35 following execution of the agreement.
- Commander will receive 500,000 Kivalliq shares at a Bankable Feasibility Study.
- Commander will receive a cash payment of up to $6 million upon commencement of Commercial Production.
- Commander will retain a 0.25% to 0.5% NSR royalty on Commander’s Baffin Gold Property option lands.
- As part of the data purchase agreement, Kivalliq will grant Commander a 0.25% NSR royalty on Kivalliq’s Baffin mineral tenure contiguous to Commander’s Baffin Gold Property option lands.
Terms of the Baffin Gold Property Option Agreement may be adjusted up until the date of the first royalty payment to reflect the possible impact of any past commercial arrangement or interests.
Kivalliq is a Vancouver-based company with a portfolio of high-quality uranium and precious metal exploration projects in Canada. Kivalliq’s team of northern exploration specialists has forged strong relationships with sophisticated resource sector investors and Nunavut Tunngavik Inc. (NTI) on both the Angilak and Baffin Gold Properties.
The Option is subject to certain customary conditions including without limitation receipt of all necessary regulatory and third party approvals, including the approval of the TSX Venture Exchange.
Exploration results summarized herein were collected during exploration programs by Commander at the time and were supervised by qualified personnel in the employ of Commander. Press releases from the period documented the QA/QC procedures.
Robert Cameron, P. Geo. is a qualified person within the context of National Instrument 43-101, and has read and takes responsibility for the technical aspects of this release.
About Commander Resources:
Commander Resources is a Canadian focused exploration company that has leveraged its success in exploration through partnerships and sale of properties, while retaining equity and royalty interests. Commander has a portfolio of base and precious metal projects across Canada and significant equity positions in Maritime Resources Corp. (MAE-TSX.V) and Aston Bay Holdings (BAY-TSX.V). Commander also retains royalties from properties that have been partnered, optioned or sold.
On behalf of the Board of Directors,
Robert Cameron, P. Geo.
President and CEO
For further information, please call:
Robert Cameron, President and CEO
Neither 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.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.