NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
TORONTO, April 22, 2020 (GLOBE NEWSWIRE) -- Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF) (FSE: B4IE) (the “Company or “Goliath”) is pleased to announce it has closed a non-brokered private placement of units for gross proceeds of $480,950 and its 2020 exploration program planned at its 100% controlled Golddigger Property is fully funded.
The placement was priced at $0.10 per unit that included one common share, plus one five year warrant to purchase an additional common share at $0.15 for a total of 4,809,500 units being issued. The Company paid a finder's fee of 7% cash and 7% finders units from a portion of the financing to Canaccord Genuity Corp., Haywood Securities Inc. and PI Financial Corp. totaling $9,450 and 94,500 finders units respectively having the same terms of the units sold. The proposed private placement and finder's fees are subject to TSX Venture Exchange acceptance. All units and underlying securities issued pursuant to this offering are subject to a four-month hold plus one day period from the closing date.
An officer of the Company purchased or acquired direction and control over a total of 100,000 Units under the private placement. The placement to those persons constitutes a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 -Protection of Minority Security Holders in Special Transactions (“MI 61-101”) adopted in the Policy. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25% of the Company's market capitalization (as determined under MI 61-101). Further details will be included in a material change report to be filed by the Company. The material change report will not be filed more than 21 days prior to closing of the placement due to the timing of the announcement of the amended private placement and closing occurring in less than 21 days.
Golddigger Property – 2020 Exploration Program
A portion of these proceeds have been earmarked for delineating drill targets on its newly discovered high-grade polymetallic gold zone at its 100% controlled Golddigger property located Southeast of Stewart, British Columbia within the prolific Golden Triangle (See Video Link - Golddigger 2020 Update).
The property is next to Auryn Resources’ Homestake Ridge high-grade gold-silver deposit (See Map Image) who recently announced a Preliminary Economic Assessment (PEA) and updated mineral resource estimate of 166,000 oz @ 7.02 g/t Au, 1.8M oz @74.8 g/t Ag Indicated and 816,700 oz @ 4.58 g/t Au, 17.8 oz @100 g/t Ag Inferred (see their news April 15, 2020).
The Dolly Varden Mine access is road is located 7 km to the East of the property and 10 km to deep water barge access, providing good access to infrastructure in Alice Arm, BC.
An exploration program for extensive bedrock channel cutting is planned at the Sure Bet Zone to test the extent of multiple polymetallic gold mineralized structures and their surrounding halos of disseminated gold mineralization that will assist in delineating drill targets. The Sure Bet Zone was discovered in 2019 and measures ~1550m by 1130m containing multiple gold mineralized Northwest trending structures; the zone remains open in all directions. Sample highlights can be viewed in the charts below.
A 2019 inaugural test channel cut on the discovery outcrop assayed 7.37 g/t AuEq over 8.4m including 3.4m of 17.68 g/t AuEq and 0.4m of 102.16 g/t AuEq true width. The channel started and ended in gold mineralization, 2.15 g/t Au and 1.44 g/t Au respectively, confirming the surrounding wall rock of flooded silica Hazelton group sediments are mineralized as well.
Table 1 - 2019 Sure Bet Channel Sample Results
| Channel I/D | Sample Type | Interval (m) | Gold (gpt) | Silver (g/t) | Copper (%) | Zinc (%) | Lead (%) | Gold Eq (gpt) |
| SURE BET ZONE | ||||||||
| Sure Bet 1 | Channel | 8.4 | 5.37 | 114.80 | 0.01 | 0.28 | 1.10 | 7.37 |
| Including | Channel | 3.4 | 12.74 | 299.68 | 0.02 | 0.58 | 2.47 | 17.68 |
| Including | Channel | 0.4 | 71.30 | 1685.00 | 0.06 | 4.27 | 19.70 | 102.16 |
1.AuEq metal values are calculated using Au $1490.80/oz, Ag $17.54/oz, Cu $2.60/lb, Pb $0.97/ln, Zn $1.11lb. All values are reported in USD and do not consider metal recoveries.
Table 2 - 2019 Prospecting Sample Highlights
| Sample ID | Sample Type | Interval (m) | Gold (gpt) | Silver (g/t) | Copper (%) | Zinc (%) | Lead (%) | Gold Eq (gpt) |
| SURE BET ZONE | ||||||||
| A0600609 | Chip | 1.0 | 49.50 | 862.00 | 0.06 | 1.71 | 6.07 | 63.30 |
| A0601413 | Grab | 46.00 | 846.00 | 0.08 | 2.16 | 3.82 | 58.86 | |
| A0600606 | Grab | 45.50 | 695.00 | 0.04 | 4.36 | 12.30 | 60.44 | |
| A0600659 | Chip | 1.0 | 38.20 | 167.00 | 0.07 | 3.09 | 2.51 | 42.94 |
| A0600663 | Grab | 36.70 | 82.40 | 0.01 | 0.08 | 1.76 | 38.51 | |
| A0600654 | Grab | 32.60 | 1460.00 | 0.04 | 1.21 | 10.65 | 55.20 | |
| A0601033 | Grab | 29.00 | 340.00 | 0.03 | 9.19 | 6.77 | 40.75 | |
| A0600657 | Talus | 18.30 | 280.00 | 0.03 | 6.70 | 4.33 | 26.99 | |
| A0600652 | Float | 17.85 | 59.70 | 0.87 | 0.14 | 0.01 | 19.67 | |
| A0601418 | Grab | 9.74 | 1665.00 | 0.07 | 4.69 | 4.00 | 33.48 | |
| A0600603 | Float | 9.59 | 111.00 | 0.01 | 0.06 | 1.33 | 11.53 | |
| A0601036 | Grab | 5.83 | 653.00 | 0.11 | 1.96 | 1.25 | 15.20 | |
| A0600662 | Grab | 5.82 | 73.30 | 0.02 | 0.18 | 1.20 | 7.33 | |
| A0600655 | Chip | 1.0 | 5.34 | 1150.00 | 0.04 | 0.84 | 14.05 | 25.62 |
| A0600608 | Chip | 2.0 | 4.40 | 49.20 | 0.00 | 0.05 | 0.28 | 5.13 |
| A0601414 | Grab | 3.76 | 206.00 | 0.03 | 0.35 | 1.50 | 7.07 | |
| A0600658 | Talus | 3.58 | 773.00 | 0.03 | 7.00 | 10.90 | 21.14 | |
| A0600653 | Grab | 2.90 | 126.00 | 0.01 | 1.46 | 1.31 | 5.72 | |
| A0600661 | Grab | 2.51 | 2580.00 | 0.20 | 2.62 | 5.78 | 37.02 | |
| A0600656 | Grab | 2.06 | 1200.00 | 0.09 | 4.62 | 3.89 | 20.38 | |
| A0600664 | Grab | 1.93 | 10.20 | 0.11 | 0.03 | 0.03 | 2.20 | |
| A06001415 | Grab | 1.89 | 2360.00 | 0.24 | 4.83 | 6.30 | 35.22 | |
| A0600665 | Grab | 1,41 | 20.00 | 0.05 | 0.42 | 0.14 | 1.98 | |
1Grab samples are selective in nature and collected to determine the presence or absence of mineralization and are not intended to be representative of the material sampled. 2.AuEq metal values are calculated using Au $1490.80/oz, Ag $17.54/oz, Cu $2.60/lb, Pb $0.97/ln, Zn $1.11lb. All values are reported in USD and do not consider metal recoveries.
Lucky Strike Property - Lorne Creek Porphyry System
The Company announced it drilled wide mineralized gold zones near surface at its newly discovered Lorne Creek Porphyry System October 28, 2019 (See News Release). The inaugural exploratory diamond drilling in 2019 was designed to test the outcropping Lorne Creek Au-Cu-Mo porphyry target to depth. The drilling intersected widespread sulfide mineralization, potassic alteration, key porphyry texters with several polymetallic intervals. Drill hole LS-19-01 intersected 20.7 meters of 0.39 g/t AuEq, including 3.7m of 1.18 g/t AuEq near surface and Drill hole LS-19-02 intersected 45m of 0.14 g/t Au, 1.35 g/t Ag and 0.05% Cu near surface.
The three holes were drilled from one single drill pad location totaling 1741 meters. The exploratory drill program confirmed the presence of Au, Ag, Cu, Mo mineralization within a pyritic alteration zone containing potassic alteration, key textures and geologic units consistent with a porphyry system from the surface and to the bottom of all drill holes; it remains open (See Video Link - Lucky Strike 2020 Update). The results suggest that all three holes intersected a pyritic alteration zone in the porphyry system adjacent to the ore zone (see Lowell & Guilbert, 1970).
A recent High Resolution Magnetic and Radiometric survey has defined several geophysical anomalies interpreted to be indicative of hitherto unidentified porphyry systems (Total Magnetic Intensity Map Image) and (Potassium Alteration Map Image). These new geophysical targets are expected to be developed into multiple drill targets at a future date.
Lucky Strike currently remains the material property for the Company with a confirmed porphyry system near surface. Due to COVID-19 and future uncertainties that could potentially affect this year’s exploration programs, management has decided to assemble a smaller exploration team with the intention of advancing its Golddigger property to a drill ready status for 2021. Goliath will revisit the Lucky Strike property next year.
Qualified Person
Rein Turna, P. Geo, is the qualified person as defined by National Instrument 43- 101, for Goliath Resources projects, and supervised the preparation of, and has reviewed and approved, the technical information in this release.
About Goliath
Goliath Resources Limited is a project generator of precious metals projects focused in the prolific Golden Triangle and surrounding area of northwestern British Columbia. It has four separate option agreements to acquire 100% two highly prospective properties that include the Golddigger and Lucky Strike properties covering over 50,000 hectares.
Further information regarding Goliath Resources Limited can be found at:
www.goliathresourcesltd.com
Contact Information:
Roger Rosmus
Chief Executive Officer
roger@goliathresources.com
+1-416-488-2887 x222
General Disclaimer
Goliath Resources Limited "Goliath" has taken all reasonable care in producing and publishing information contained in this news release and will endeavor to do so on a periodic basis. Material in this news release may still contain technical or other inaccuracies, omissions, or typographical errors, for which Goliath assumes no responsibility. Goliath does not warrant or make any representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information on this site. Under no circumstances, including, but not limited to, negligence, shall Goliath be liable for any direct, indirect, special, incidental, consequential, or other damages, including but not limited to, loss of programs, loss of data, loss of use of computer of other systems, or loss of profits, whether or not advised of the possibility of damage, arising from your use, or inability to use, the material from this news release. The information is not a substitute for independent professional advice before making any investment decisions. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information on this site, except for personal use unless you have obtained our express written permission.
Forward-Looking Statements
This news release contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.
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