VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 14, 2017) – Abenteuer Resources Corp. (“Abenteuer” or the “Company”) (TSX VENTURE:ABU), through its wholly-owned subsidiary Roughrider Energy Corp., is pleased to announce that it has entered into an agreement to acquire (the “Proposed Acquisition”) the Temiskaming & Fabre Cobalt – Silver property (“the “Property”) located in Quebec’s Fabre Township. The Property is located immediately east of the shores of Lake Temiskaming across from the historical mining-town of Cobalt, Ontario within the eastern extent of the famous Cobalt Silver Mining Camp. The northern portion of the Property, known as Temiskaming, is composed of twenty-seven contiguous claims covering an area of approximately 1577 hectares and the southern portion of the Property, known as Fabre, is composed of eleven contiguous claims covering an area of approximately 643 hectares.
Highlights of the Proposed Acquisition:
- Located in mining friendly jurisdiction of Quebec underlain by geology that is prospective for Cobalt and other minerals;
- Previous historical exploration efforts and government reports identified compelling targets that have not been followed up on;
- Project is road accessible year round by Quebec Highway 101, which runs through the Property;
- The “Fabre Showing”, situated immediately in between Temiskaming and Fabre, was drilled by Techni-Lab Abitibi Inc. in 1995, discovering two high grade zones mineralized with Cobalt, Silver and Bismuth (Cobalt values up to 8%, Silver grades as high as 714 g/t, and Bismuth grades up to 1.1%). (1)
The areas in proximity to the historically significant mining-town of Cobalt, Ontario have recently been the focus of heightened activity and exploration efforts in an attempt at identifying and uncovering new Cobalt discoveries. In what was largely seen as a silver camp during the period 1900 to 2000, the prospective for cobalt occurrences in Ontario and Quebec have sparked renewed interest in these areas. As demand for electric vehicles and energy storage continues to escalate, cobalt (which is a vital component of Lithium-ion batteries – comprising up to 60% of the commodity inputs) is fast becoming a highly strategic and sought after metal. It is estimated that 98% of the world’s cobalt production is produced as a result of by-product mining from copper and nickel operations. By virtue, with curtailments in recent years of copper and nickel production, cobalt production has decreased in lockstep. Further, with approximately 60% of current global cobalt supply coming out the Democratic Republic of the Congo, end users are in search of supply sources that are domiciled in politically stable jurisdictions.
(1)This information is taken from Quebec historical GESTIM report number GM53265. The report is available to purchase on Quebec’s Le SIGEOM a la carte.
The Company is acquiring the Property from arm’s-length vendors in exchange for 4.5 million common shares of the Company (the “Consideration Shares”). The vendors have agreed to a voluntary pooling of the Consideration Shares whereby 50% of the Consideration Shares will be released after expiry of the 4 month plus one day hold period and the remaining 50% of the Consideration Shares will be released nine months after the initial issuance.
The Proposed Transaction is subject to approval from the TSX Venture Exchange.
About the Property
The Property geology is Proterozoic and Archaean in age. On Temiskaming, the bedrock geology is comprised primarily of sedimentary rocks: conglomerate, quartz arenite, arkose and mudstone. These sedimentary rocks have been intruded by gabbro. Further, there is a minor andesite component in the northeastern part of Temiskaming, the rock type that hosts the “Fabre Showing”. The bedrock geology of the southern Fabre block consists of a complex geology in the west. The western portion is a sedimentary package and gabbro intrusive with an accessory amount of volcanic tuff. The central and eastern parts of Fabre are composed primarily of an anorthosite-gabbro intrusive. The margins of the Property are mapped as tonalite. Located immediately in between Temiskaming and Fabre is the Fabre Showing. Drilled in 1995 by Techni-Lab Abitibi Inc., two high-grade zones mineralized with Cobalt, Silver and Bismuth were discovered. The highest grades appear to be present in veins mineralized with sphalerite, chalcopyrite and pyrite set within an altered andesite. The discovery of the Fabre Showing pre-dates National Instrument 43-101 (“NI 43-101”) and as a result this work was not necessarily prepared under the supervision of a qualified person. The Company has not independently confirmed nor verified the historical work.
Table 1: The Fabre Cobalt-Silver Showing Drill Intercept (taken from report: GM53265) (2)
Interpretations and Exploration Targets on Temiskaming
Previous historical exploration work was conducted by SOQUEM, a government agency founded in 1965 with a mandate to explore, discover and develop mining properties in Quebec. SOQUEM noted a thin syenite intrusive and suggested that instrusives are a key factor leading to mineralization in the thick sedimentary package when they drilled the Property in 1966. This is the case across the lake in Cobalt, Ontario. Analysis of historical drill logs has indicated that chalcopyrite and pyrite mineralization is most common near veins and or alteration zones. These alteration zones seem to be present near veins as well as intrusives. As a result, these alteration zones and contact points are the key exploration targets on the Property. Initial geological interpretation and analysis has identified five key prospective targets for the Company to focus on as outlined in Table 2. All quoted historical data, drilling and core logging pre-dates NI 43-101 and as a result was not supervised by a qualified person as defined by NI 43-101. The Company has not independently confirmed nor verified the historical work.
(2) Refer to a news release by Tres-Or Resources at www.tres-or.com/announcements/tres-or-exploration-update-and-drill-program-in-quebec.
Table 2: Key Exploration Targets on Temiskaming
|DDH B-3.20-61||The drill log describes a sandstone mineralized with pyrite and chalcopyrite. The sandstone also had accessory amounts of mudstone, conglomerate and syenite. The drill log also suggests alteration could be due to a proximal gabbro intrusion.|
|DH 293||The drill log described mineralized bands of chalcopyrite and pyrite within sediments appearing to be present along bands that display different grain sizes in the sedimentary package.|
|Geological Contacts||Significant focus on where the gabbro contacts sedimentary rocks.|
|Nickel Potential in Gabbro||In 1998 Pro Or conducted Nickel exploration in the area (including the Property). Samples with grades up to 1.74% Nickel and 5.33% Chrome in a magnetic gabbro were observed. Canadian Cobalt production is primarily associated with Nickel mining. It is uncertain what exact nickel and chrome sample values were taken on the Property. Future work will aid in determining if there is any potential for such mineralization on the Property.|
|Gold potential||Pro Or also sampled for Gold in the Fabre area (including on the Property). A series of 7 samples with anomalous Gold values over 1 g/t were noted with the highest grade being 23.69 g/t. It is uncertain what gold sample values were taken on the Property.|
Interpretations and Exploration Targets on Fabre
A total of five diamond drill holes were drilled on the Property by the Quebec government between 1962 and 1975. Although the historical reports did not contain assay values, the drill holes intercepted arkose mineralized with chalcopyrite as well as conglomerates, siltstone, argillite and granodiorite. It appears that the best exploration targets are located on the western portion of the Property in the general area of historical drilling. Targeting the contact points between sedimentary or volcanic rocks against intrusives appears to offer the most prospective geological environment for mineralization. All quoted historical data and drilling pre-dates NI 43-101 and as a result was not supervised by a qualified person as defined by NI 43-101. The Company has not confirmed nor verified the historical work.
Table 3: Key Exploration Targets on Fabre
|DDH 1 (Report GM27945)||Drilled proximal to the contact of the gabbro and conglomerate. A mineralized quartz vein was noted in the drill log and is a target.|
|DDH 2 (Report GM27945)||Like DDH 1, this hole was drilled proximal to the contact of the gabbro and conglomerate. A mineralized quartz vein was not noted in the drill log. Either the hole was stopped early or the vein is not present in this location.|
|Gabbro and Volcanic Rocks||Gabbro and volcanic rocks dominate the central portions of the property. These rocks, especially the interface between gabbro and volcanics, are key targets.|
|Sedimentary – Gabbro Contact||This contact appears as an additional target to examine in future work programs on the Fabre property.|
The technical content of this news release has been reviewed and approved by Thomas Clarke P.Geo., Pr.Sci.Nat., a qualified person as defined by NI 43-101.
About the Company
Abenteuer is an energy company that currently has stable oil production through operations in southeastern Saskatchewan. The Company is focused on adding, creating and increasing value through the acquisition, development and production of conventional oil and gas assets as well as alternative energy sources such as cobalt and lithium, particularly in North America.
Neither the 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.
Cautionary Statements regarding Forward-Looking Information:
Certain statements contained in this press release constitute forward-looking information as defined by law including without limitation Canadian securities laws and the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995 (“forward-looking statements“). These forward-looking statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. All statements including, without limitation, statements relating to the potential mineralization and geological merits of the Temiskaming-Fabre area and the Company’s properties and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to the actual results of current or future exploration activities, fluctuating commodity prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.