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Coronet to acquire 3,888 claims in Meguma by staking

May 18, 2018

Mr. Theo van der Linde reports
CORONET METALS INC. ACQUIRES CRITICAL MASS LAND POSITION IN MEGUMA GOLD BELT

Coronet Metals Inc. has entered into an agreement that will allow the company to gain a 100-per-cent interest in a large land position in one of Canada’s historical gold districts. The company will acquire 3,888 mineral claims totaling over 62,000 hectares becoming one of the province’s largest single mineral claim holders and a leading gold exploration company in Nova Scotia. These claims were staked along the underexplored trends of known gold producing anticlinal structures, and the company estimates that it will control approximately 242 kilometers (total strike length) of gold-prospective anticlines.

Through this acquisition, the company believes it has a unique opportunity to control the largest strike length share of projected anticlines in the province and will employ state-of-the-art clean technology exploration that will assess the true gold potential. To better define these anticlinal trends and to focus an aggressive phase 1 exploration program, the company has initiated a 12,342-kilometre aeromagnetic and radiometric survey along with 1,110 square kilometers of lidar survey.

Theo van der Linde, president of the company, stated: “The awakening of Nova Scotia’s goldfields due to a recognition that an economic disseminated gold exploration and production model exists in the Meguma gold belt offers our shareholders a rare opportunity to participate in a regional-scale gold exploration platform. On behalf of shareholders, I extend my appreciation to Coronet’s talented technical team, who have helped to position our company with this exciting project.”

Nova Scotia — a gold-rich past and future
Nova Scotia has a rich history of gold discovery and production and has been one of Canada’s first gold mining camps with production dating back to 1861. Between 1862 and 1927, 966,241 ounces of gold were mined from 2,184,850 tons of crushed material (G. Malcolm, 1929 memoir). Historical exploration has focused on narrow-vein high-grade gold deposits, but the discovery in the 1980s of significant disseminated gold within argillite shales at the Touquoy deposit and the opening of a new mine by Atlantic Gold has renewed interest in Nova Scotia’s historic gold districts.

The company’s mineral claims are adjacent and along trend from Atlantic Gold’s Touquoy disseminated open-pit gold deposit. Atlantic Gold has outlined a measured plus indicated resource of 10.1 million tonnes grading 1.5 grams per tonne for a total of 480,000 ounces of gold, plus an inferred resource of 1.6 million tonnes and 77,000 ounces of gold (Atlantic Gold, August, 2014).

Coming exploration work
In conjunction with this new project acquisition, the company has initiated a multiphase exploration program aimed at defining and drill testing numerous targets moving forward. Phase 1 exploration will include:
• A detailed (100-meter line spacing) 12,000-kilometre airborne geophysics and lidar (light detection and ranging) program, which is one of the largest modern-day airborne initiatives in Nova Scotia;
• Reinterpretation of past geophysical work of known deposits to develop a proprietary fingerprint model for identifying new deposits within the project;
• Reprocessing and modeling of new aeromagnetic, radiometrics and lidar;
• Development of a 3-D perspective model to identify geology, structures and alteration that will be vectors to new gold mineralization;
• The introduction of clean technology field methods and assessment tools to allow geologists to focus exploration on the most prospective ground.

The company intends to follow up phase 1 with a 10,000-metre comprehensive drill program to be completed prior to the end of calendar 2019. The N.S. exploration team is composed of some of the most experienced geologists within the N.S. gold districts, and it will continue to use modern exploration methods and develop new exploration techniques to better define prospective gold targets.

The company is well financed and able to execute on its aggressive exploration plans in Nova Scotia, as well as across its broader project portfolio.

Terms
In conjunction with the acquisition, the company will purchase all of the shares from an arm’s-length vendor by issuing 15.5 million common shares of the company. The vendors shall retain a 2-per-cent gross royalty on the project. Finders’ fees of $200,000 in cash and 8 percent in common shares will be paid to qualified arm’s-length parties in connection with the acquisition.
Qualified person

Fred Tejada, PGeo, a director of the company, is a qualified person under the meaning of Canadian National Instrument 43-101 and is responsible for the technical information contained in this news release.

 

About Meguma Gold
Meguma Gold is engaged in the business of acquiring, exploring and developing natural resource properties, with a focus on precious mineral properties/projects which have the potential for both near-term cash flow and significant exploration upside potential. Meguma’s White Caps gold project is near the town of Manhattan in Northern Nye county.