Toronto, Ontario – TheNewswire - July 9, 2020 – Frontline Gold Corporation (TSXV:FGC) (“Frontline” or the “Company”) is pleased to announce that it has entered into an option to earn up to 100% interest in hundred sixty-four (“164”) claim units, approx. 35 square kms, located in Northwestern Ontario within the Thunder Bay Mining District of Ontario (“Crooked Pine Property”).
The Crooked Pine Property is approximately 135 km west of Thunder Bay, Ontario. The claims are road accessible via Trans Canada Highway 11. Good Infrastructure includes highway access, rail, and power (see map).
The Crooked Pine Property is located within the Marmion batholith, between Agnico Eagle’s Hammond Reef Deposit of approx. 4.5 M oz Au, (Source: www.agnicoeagle.com) and Wesdome’s indicated resource of 1.4 M oz Au at its Moss Lake Deposit (Source: www.wesdome.com). Note the deposits mentioned are not necessarily indicative of the potential mineralization, if any, hosted on the Crooked Pine Property.
To exercise its option and acquire a 100% interest in the Crooked Pine property claims, Frontline must pay the Optionor a total of $150,000 (of which a total of $95,000 is due in years 2 and 3 of the option agreement), with $15,000 due on signing and $10,000 due within 3 months of the signing day, and issuing 1,000,000 common shares of Frontline. The Optionor will retain a 2.0% net smelter returns royalty. Frontline may repurchase one-half of the 2.0% royalty for $1,000,000. The transaction is subject to TSX Venture Exchange (“TSX-V”) approval.
Crooked Pine Gold Project Highlights
The property hosts a well-defined gold-bearing structure along a northeast splay of the Quetico Fault.
There are a number of gold occurrences on the property which will be followed up on later this summer (see map - Showings).
Option Agreement rationale
The Transaction benefits for Frontline shareholders are:
- Potential ongoing exploration of an Ontario focused gold exploration property with a prospective land package and with the capability to accelerate exploration;
- Compelling Valuation for Frontline Shareholders: The large exploration property comprises over approx. 3500 hectares with value that is adjacent to active and historic mining and exploration properties;
- The cost of the property is significantly below current market value of similar projects.
- Frontline continues to maintain significant Exposure to Exploration Success: Not only on the Crooked Pine Property but related to success by others in the area, including Bold Ventures – Traxxin Gold Property adjacent to the western boundary, Falcon Gold’s Central Canada Project to the west and Agnico Eagles’s Hammond Reef Deposit approx. 40 kms to the west.
- Preliminary evaluation of the Crooked Pine Property has revealed pre-existing assessment reports including drilling reports which can be compiled to develop an exploration program.
Frontline’s President and CEO, Mr. Walter Henry, said, “The low acquisition cost of the sizeable land package combined with the fact that there is no minimal property expenditure requirements on the property affords us the flexibility to evaluate the exploration potential and whether to strategically grow further our position in this area of Northwestern Ontario. Lastly we have begun working with the Optionor for exploration work later this summer. In addition, Frontline will begin preparing compilations of the extensive work done in the past on the property.“
Frontline has not completed any work required to verify the historical mining estimates noted above and is not treating these historical estimates as being compliant with current standards under NI 43-101 and as such these historical estimates should not be relied upon. Caution should be used when evaluating these resources as they were calculated prior to NI 43-101 existing and a qualified person has not done work to classify the historical estimate as a current mineral resource.
"We will be providing more detailed information along with a corporate update in the near term on all our properties, existing option agreements, and new option agreements entered into." said Walter Henry CEO and President of Frontline.
Frontline continues to actively seek projects, and additional investor/partner(s) in order to continue to build upon it property and net smelter return royalties.
About Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company. The Company's properties include the optioned gold projects in Red Lake area of Ontario, Cameron Lake Gold Project (Ontario), Abbie Lake (Ontario), Abitibi Region of Quebec and Menderes gold project in the Izmir province of Western Turkey. Other Canadian exploration properties include other gold property groups in Ontario and include the Whitehorse Island Mining Patents. In addition Frontline has a large NSR package on four separate gold property groups in Red Lake, which are currently under option to the Pacton Gold.
Further information about the Company is available on the Company’s website, www.frontlinegold.com , or our social media sites listed below:
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.-------------------------------------------------------------------- | “Walter Henry” | |Contact: Walter Henry | | | |Telephone: (416) 861- 9090 | | | |Email: email@example.com| | | |Website: www.frontlinegold.com | | | | | | | |Frontline Gold Corp. (TSX-V: FGC) | | | |372 Bay Street, Suite 301 | | | |Toronto, Ontario M5H 2W9 | |----------------------| | | |Walter Henry, | | | |President&CEOFRONTLINE| | | |GOLD CORP. | | | --------------------------------------------------------------------
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