Vancouver, British Columbia, Canada, May 6, 2019 – TROUBADOUR RESOURCES INC. (the “Company”) (TSX VENTURE: TR) (OTCQB: TROUF) is pleased to provide an update on the Company’s ongoing activities during its due diligence period as part of its right to acquire a 100% interest in the Privateer Gold Property located on the northwest coast of Vancouver Island, B.C., near the town of Zeballos.
The Company’s geologists have conducted an initial site visit of the property to confirm drill collar, portal and access locations, and have taken selective check samples to validate analytical results. The results from these replicate samples compare well to and reinforces confidence in the original data set. This, combined with the exceptional exploration potential and targets that have been identified thus far by the Troubadour technical team, supports the continued progression towards completing the proposed transaction by the end of May 2019.
In collaboration with the Company, Surespan Construction crews are at site rehabilitating existing access roads and constructing a series of new roads. The network of roads is designed to provide unprecedented access to the highly prospective exploration targets while improving access to areas hosting the pronounced 2017 and 2018 drill results, which included:
- An intercept of 1,386.50 g/t gold (Company news release dated March 5, 2019) over 0.30 metres from 85.30 metres downhole at the newly discovered 88 Vein;
- A 50 metre step-out to the northeast of the past-producing Prident Mine of 5.81 g/t gold over 7.12 metres, including 67.50 g/t gold over 0.37 metres; 23.10 g/t gold over 0.40 metres and 18.40 g/t gold over 0.39 metres from 51 metres downhole; and
- An 80 metre step-out to the Southwest of the past-producing White Star Mine of 24.20 g/t gold over 0.55 metres from 61.50 metres downhole.
* Drill intercept lengths disclosed herein are expressed along drill core axis and do not represent true thickness of mineralization. There has been insufficient work to determine true thickness and further work is needed to determine the relationship between core intercept length and true thickness. For a summary of the significant intersections reported from the 2017 and 2018 drill campaigns, refer to Company news release dated March 11, 2019.
The modern-day Privateer Gold property is a consolidation of several discrete high-grade gold mining operations that witnessed a short but fervent production period from the late 1930’s through to a premature cessation in the late 1940’s (see Company news release dated March 5, 2019 for further details). These past producers are single points in a broader and interrelated mineralizing system that remains essentially un-exploited and which the Privateer Gold property now encompasses.
Troubadour is in a unique historic position with control over the majority of Zeballos gold mining camp’s sites of past production and all the prospective unexplored intervening land. The first steps towards unlocking the value hidden there is to:
- Develop an integrated model of the historical workings and geological data, which has never been performed, to extrapolate high priority target areas; and
- Establish a road network to access all the prominent target areas, which has never been developed, in preparation of a comprehensive drill program.
Both of these initial pursuits are well underway.
“The Privateer Gold Property has delivered remarkable historical gold production and more recently exceptional, shallow high-grade gold drill intercepts. We are keen to get to work and explore the property-wide potential of this asset,” states Geoff Schellenberg, President and Director.
The road work is being funded through a $250,000 loan arrangement between Surespan and Privateer Gold Ltd. Upon signing of the definitive agreement, the Company will assume this loan with the added condition that the lender will have the right to convert the loan into common shares of Troubadour. The convertible loan will bear interest at 8% per annum and be convertible until common shares of the Company at a price of $0.10 per share provided that the Company exercises the Option.
About Troubadour Resources Inc.
The Company has signed a letter of intent (LOI) (Company news release March 5, 2019) to acquire a 100% interest in the Privateer Gold Project, located 3km north of the town of Zeballos on Northern Vancouver Island, British Columbia, Canada. The Company is also engaged in the preliminary exploration of its 100% owned Amarillo Project located approximately 30 kilometres west of the town of Peachland and 71 kilometres northeast of the town of Princeton, in southwestern British Columbia.
The Privateer Gold Project consists of six (6) mineral tenures and 84 crown grants encompassing the historic Zeballos gold camp, which is home to significant past producing mines. Under the terms of the LOI, the Company has an exclusive 90-day due diligence period allowing it to complete a comprehensive review of all available data and evaluate the exploration potential of the Property before entering into a definitive purchase agreement with the vendor.
The Amarillo Project consists of seven (7) mineral tenures totalling 4,178 hectares and is situated within the heart of a major mining district. The multi-element geochemical signature of the Amarillo Project is consistent with a large multi-phase mineralizing system and is acutely similar to some of the neighbouring mining operations; such as the Brenda Cu-Mo-Ag-Au porphyry mine located 10 kilometres to the north that produced 278,000 tonnes of copper, 66,000 tonnes of molybdenum, 125 tonnes of silver and 2 tonnes of gold over a twenty-year mine life (source: Brenda Mines website).
Patrick McLaughlin, P. Geo., a Qualified Person as defined by NI 43-101, has reviewed and approved the contents of this news release.
- Zeballos Camp Historic Production Source: Hanson and Sinclair, Geological Fieldwork 1982 Summary, Province of British Columbia Ministry of Energy, Mines and Petroleum Resources.
For further information please contact:
Troubadour Resources Inc.
625 Howe Street, Suite 488
Vancouver, BC V6C 2T6
Geoff Schellenberg, President
Office: (604) 681-0221
Forward Looking Information
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. Readers are cautioned not to place undue reliance on forward looking statements.
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