TRI-RIVER VENTURES ENTERS INTO AN OPTION AGREEMENT ON BLUE CARIBOU COPPER PROPERTY IN NUNAVUT
Vancouver, British Columbia, December 23, 2021 – Tri-River Ventures Inc. (“Tri-River” or the “Company”) (TSX-V: TVR.H) is pleased to announce that it has entered into a definitive option agreement (the “Option Agreement”) with Tao Song. (“Optionor”), whereby the Company has the right to initially earn up to an 80% interest in the “Blue Caribou” copper/gold mineral exploration property (the “Blue Caribou Property” or the “Property”) situated in Nunavut by paying the Optionor C$0.275 million and issuing 150,000 common shares of the Company and incurring C$1.5 million exploration over a period of three years (the “Option”). The Company also has the option to acquire the remaining 20% interest in the Blue Cariboo Property by paying the Optionor C$150,000 and issuing 100,000 common shares of the Company.
On the approval of the Agreement by the TSX Venture Exchange (the “Exchange”), it is anticipated that Tri-River will resume trading on the Exchange as a Tier 2 issuer.
About Blue Caribou Property
The Blue Caribou Property is situated in the Kitikmeot Region of Nunavut, 480 km northeast of Yellowknife. It can be accessed via fixed wing aircraft landing on the Sage Lake Esker in the center of the property. The Property consists of 484 units in a contiguous block totaling 82.2 square kilometers.
In 2008 and 2009, Skybridge Development Corporation, then a wholly-owned subsidiary of Mega Precious Metals Inc., organized a comprehensive exploration program to investigate the mineralized showings and airborne geophysical anomalies identified in previous exploration activities on the Property. The comprehensive exploration program consisted of a surface exploration program and a diamond drilling program. The surface exploration program included reconnaissance grab sampling, geochemical soil sampling, and ground geophysical surveys over the historical mineralized showings and geophysical anomalies. The diamond drilling program including test drilling and exploration drilling was carried out on the prioritized exploration targets in the Blue Caribou Copper Zone and the Blue Caribou Gold Zones.
A total of 4311.8 meters in 41 diamond holes were drilled on the Blue Caribou Copper Zone and the Blue Caribou Gold Zone in the 2008-2009 drilling program. 3480.8 metres in 35 exploration holes were drilled on the Blue Caribou Copper Zone (Figure 1 and Table 1) and all of the completed holes intersected copper mineralization zones (Table 2). Results from the exploration drilling on the Blue Caribou Copper Zone have confirmed a continuous mineralization zone of 1000 metres along strike and 700 metres down dip (Figures 2 and 3). The mineralization zone is a shallow-dipping sulfide-rich brecciated quartz vein structure striking 110º to 130º and dipping approximately 30º south. The average true width of the vein from all drill intercepts is 7.4 metres (with a cutoff of 0.1% copper) and the average grades of the mineralized intercepts are 1.68% copper, 0.04% molybdenum, 19 grams per tonne silver, and 0.12 grams per tonnes gold. The drill-delineated mineralization zone is open along strike and down dip.
Based on drilling results of the 33 completed holes in 2008, an inferred mineral resource of 4.8 million tonnes at grades of 2.03% Cu, 0.04% Mo, 22.72 g/t Ag, and 0.15 g/t Au was delineated by using a 0.35% cut-off grade for copper and a minimum true width of 2 metres. The average true width of the mineralization at the 0.35% cut-off grade for copper is 6.54 meters.
Highlights of selected drill hole intercepts from the 2008-2009 drilling programs (see Table 2 for details):
- Hole BC0803 intersected an 18.3m interval from 43.8m to 62.1m, 15.9m true width, grading 1.89% copper (“Cu”) and 18 grams per tonne (g/t) silver (“Ag”);
- Hole BC0806 intersected an 8m interval from 26.6m to 34.6m, 7.8m true width, grading 2.84% Cu and 28 g/t Ag;
- Hole BC0808 intersected a 12m interval from 43.0m to 55.0m, 11.7m true width, grading 2.72% Cu and 30 g/t Ag;
- Hole BC0824 intersected a 7.1m interval from 88.1m to 95.2m, 6.3m true width, grading 2.88% Cu and 45 g/t Ag; and
- Hole BC0934 intersected a 2.4m interval from 83.6m to 86.0m, 2m true width, grading 1.73% Cu and 11 g/t Ag, and a 4.2m interval from 268.5m to 272.7m, 3.6m true width, grading 3% Cu and 40 g/t Ag.
Table 1 Survey Data of Exploration Holes on Blue Caribou Copper Zone
|Hole ID||Grid Name||Easting||Northing||Elevation (m)||Azimuth (°)||Dip (°)||Length (m)||Core Size|
|BC0812||Trench Lake||Aborted before intersecting target zone||38.0||NQ|
Table 2 Assay Results for 34 Exploration Holes
|Hole ID||Line||Inclination (degree)||From (m)||To (m)||Interval (m)||True Width (m)||Cu (%)||Mo (%)||Ag (g/t)||Au (g/t)|
Figure 1 Drill Hole Locations on the Blue Caribou Copper Zone
Figure 2 Map showing completed holes and potential resource area
Figure 3 Typical Cross Section L1195E (View West)
Key Terms of the Option Agreement
The table below summarizes the key terms of the Option Agreement
|Payment and exploration expenditure||Cash Payments||Share Payments||Exploration Spending||Interest earned|
|On Approval by the Exchange||$35,000|
|On or before the 1st Anniversary of the Approval Date||$60,000||50,000 Shares||$200,000|
|On or before the 2nd Anniversary of the Approval Date||$80,000||50,000 Shares||$500,000||49%|
|On or before the 3rd Anniversary of the Approval Date||$100,000||50,000 Shares||$800,000||80%|
|Within 120 days after the 3rd Anniversary of the Approval Date||$150,000||100,000 Shares||100%|
After 49% or 80% interest in the Blue Cariboo Project has been earned by the Company, both parties can elect to enter into a joint venture agreement. Following the formation of the joint venture, dilution below 10% will result in a deemed surrender of a participating interest in the joint venture, and conversion of such interest to a 2.0% net smelter returns royalty (“NSR”). The Company has the right to purchase each 1% of the NSR for C$1 million.
Closing of the transaction is subject to Exchange approval.
Ruijin Jiang, P. Geo., who is a Qualified Person for the purposes of NI 43-101, reviewed the exploration data and prepared the scientific and technical information regarding exploration results contained herein. All the technical data and information are compiled solely based on the 2009 NI 43-101 Technical Report on Inferred Resource Estimate on the Blue Caribou Property, Kitikmeot Region, Nunavut authored by G. A. Harron, P.Eng., and filed with SEDAR and the Report of 2009 Exploration Work authored by Robert T. Chataway, P.Geo., Project Manager of Mega Precious Metals Inc. and examined and approved by the Nunavut Mineral Resource Section.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved of the contents of this news release. Neither the TSX Venture Exchange, nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
The Transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable, shareholder approval. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Tri-River Ventures Inc. should be considered highly speculative.
This news release contains certain “forward-looking statements” and certain “forward-looking information” as defined under applicable securities laws (“forward-looking statements and information”). Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “continue”, “plans” “anticipates” or similar terminology. Forward-looking statements and information include, but are not limited to, statements with respect to the Transaction, the requisite regulatory and shareholder approvals in respect thereof. Although Tri-River (the “Company”) believe that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in the Company’s periodic filings with the Canadian securities regulators, and assumptions made with regard to: the Company’s ability to complete the proposed Transaction; the Company’s ability to secure necessary shareholder, legal and regulatory approvals required to complete the Transaction; Furthermore, the forward-looking statements and information contained in this news release are made as at the date of this news release and neither of the Company’s undertake to update and/or revise any forward-looking statement or information contained herein, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.