Sky Gold Corp Acquires the Imperial Project Located Contiguous to Amex Exploration’s Perron Project
Expanding Precious and Base Metal Exploration PortfolioVANCOUVER, May 27, 2021 - Sky Gold Corp. (TSX-V:SKYG) (OTC PINK:SRKZF) ("Sky Gold" or the "Company") is pleased to announce that it has signed two definitive agreements (collectively the "Agreement") for two contiguous claim blocks (the "claims" or "Projects") comprising the Imperial Property ("Imperial" or the "Property") which shares 4.7 kilometers of it's northern border with Amex Exploration's (TSX-V: AMX) Perron Property in Quebec, where high-grade gold has been intersected in three zones along a 3.2 kilometre corridor. To the east, the claims adjoin Generic Gold Corp. (CSE: GGC) who are set to commence 7,500 metres of drilling in the coming weeks, targeting both orogenic gold and gold-rich volcanogenic massive sulfides (VMS) style mineralization. The two Projects, named La Reine and Le Roi, comprise a combined 228 claims covering approximately 6,575.84 hectares in the gold and VMS-prospective Abitibi Greenstone Belt region of Ontario and Quebec. Refer to maps in Figures 1 & 2.
Mike England, CEO & President, commented: "The acquisition of the Imperial Property is a result of over 12 months of discussions and negotiations, and we are most excited to finally get this deal done. New geological interpretations in Quebec have now been leading to very exciting discoveries, such as Amex and Starr Peak have seen, and we are eager to begin exploring for gold and base metals in very similar geological units in Quebec as well as on trend across the border into Ontario."
The Imperial Property
The Imperial Property is located to the Southwest of, and contiguous with Amex Exploration Inc.'s (TSX-V: AMX) Perron project, which has made several significant high-grade gold discoveries. Recently announced noteable gold intersections at Perron include 70.92 g/t Au over 3.90 metres, including 367.50 g/t Au over 0.60 metres, at 160 metres vertical depth, and 70.92 g/t Au over 3.90 metres, including 367.50 g/t Au over 0.60 metres, at 190 metres vertical depth (refer to AMX news release May 26, 2021). Further to the Northeast is the past-producing Normétal mine, currently held by Starr Peak Exploration (TSX-V: STE), which was mined periodically from the 1930's through to 1975 from surface to a depth of 2.4 km (SIGEOM-Mine Normétal).
The Property is underlain by a mafic-intermediate metavolcanics belt of the Stoughton-Roquemaure Group and the Hunter Mine Group, bordered to the North by a greywacke Unit of the Chicobi Group and to the South by the Abitibi Lake syn-tectonic pluton. The Property is crossed east-west by the Abitibi Thrust Fault, which dips 70 degrees to the South. The overall lithological package strikes east-west and deeps steeply to the South and is contiguous to the Amex Exploration property to the North East.
Historical exploration efforts across the Property have resulted in the discovery of 10 mineral showings (Mineral Deposit Inventory Record - Ontario Government) across the project. Historical exploration works include diamond drilling, overburden drilling, airborne magnetics, ground geophysics including magnetics and electromagnetics, surface geochemistry, geological mapping, and prospecting. Companies that conducted the work include but are not limited to Kennco, Canadian Superior Ltd., Asarco, Cominco, Eastern Mines Inc., Seal River Exploration, and East West Resources Corp. Mineralization at showings range from anomalous copper and zinc associated with disseminated to massive sulfide layers (pyrrhotite/pyrite), gold in till from overburden drill sampling with a high amount of delicate gold grains (indicating a proximal source), as well as trace to anomalous gold and copper in diamond drilling.
Figure 1: Sky Gold Corp.'s Imperial Property with respect to neighbouring projects including Amex Exploration, Starr Peak Mining, and Generic Gold Corp.
* Mineralization hosted on adjacent and nearby properties is not necessarily indicative of mineralization hosted on the Company's properties.
Figure 2: Sky Gold Corp.'s Imperial Property underlain by geology as mapped by the Ontario Geological Survey and Ministère de l'Énergie et des Ressources naturelles of Quebec
Definitive Agreement Terms
The Agreements set out proposed transactions (the "Proposed Transaction") pursuant to which Sky Gold will acquire a 100% interest in two separate vendor's (collectively the "Vendors") Projects, collectively called the Imperial Property. The proposed transactions are subject to TSX Venture Exchange (the "Exchange") approval.
To purchase a 100% interest in the two Projects the Company will pay cumulative payments, within 5 days of TSX Venture approval, of 10,500,000 shares of the Company, $150,000 cash and grant the Vendor's a 3% Net Smelter Return (NSR) for each of the two agreements, of which one (1%) can be purchased by the Company from each Vendor at any time for $1,000,000.
Qualified Person - Catherine Fitzgerald, P.Geo., a Qualified Person under National Instrument 43-101, and Independent Director of Sky Gold, is the Qualified Person responsible for reviewing and approving the technical contents of this news release as they pertain to the Imperial Project.
About Sky Gold Corp.
Sky Gold Corp. is a junior mineral exploration company engaged in acquiring and advancing mineral properties in Canada and the USA. In addition to the Company's Newfoundland properties, the Company also owns the Evening Star property, located 12 km southeast of Hawthorne, NV, which is prospective for gold mineralization and Carbonate Replacement Deposit (CRD) base and precious (silver and gold) mineralization.
ON BEHALF OF THE BOARD
"Mike England"
Mike England, CEO & Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Tel. 1-604-683-3995
Toll Free. 1-888-845-4770
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.
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at WWW.SEDAR.COM).
SOURCE: Sky Gold Corp.
