Dixie Gold Inc. - Red Lake Gold Project Update
Vancouver, July 10, 2024 - Dixie Gold Inc. (TSX VENTURE: DG)("Dixie Gold" or the "Corporation") is pleased to report that it has divested four (4) mining claims (the "Claims"), deemed by the Corporation to be non-core and representing less than 0.4% of the claim count of its Red Lake Gold Project, for purposes of helping to facilitate anticipated regional infrastructure developments that involve corresponding surface area overlying the Claims (such surface title not being owned by the Corporation)(the "Claim Sale"). The Claim Sale was conducted by way of a purchase-and-sale agreement dated July 9, 2024 with Great Bear Resources Ltd. ("GBR"), an arm's-length party and a subsidiary of Kinross Gold Corp., on terms described herein. Subsequent to any applicable approvals and from the day forward of this news release, the Corporation's Red Lake Gold Project is expected to consist of one-thousand and eleven (1,011) mining claims, with ordinary course forward-moving change to project claim count anticipated. In connection with the Claim Sale, the Corporation received cash consideration of $100,000 and was granted a 2.5% production royalty (NSR) on any mineral production from the four divested mining claims to the extent any gold or other metal production occurs therefrom, and GBR assumed existing royalty responsibility.
The Corporation is also scheduled to benefit from certain exploration activity undertaken by GBR at its adjoining project which is expected through an assessment sharing arrangement to result in a one-time forward-year of Crown-granted anniversary extension on approximately 437 mining claims selected and held by the Corporation, such area presently comprising portion of the Red Lake Gold Project most proximal to the activities of GBR and viewed by Dixie Gold as having elevated interest to the Corporation.
The Corporation continues to assess, and where appropriate, prioritize areas of its Red Lake Gold Project, noting that the Claim Sale recovers more than all of the original project acquisition costs spent by the Corporation for the entire project (then originally 1,241 claims). Dixie Gold remains committed to refining project scope and project size by evaluating past exploration work (see also news release by the Corporation dated April 17, 2024) and the project's forward-moving composition by way of various claim management activities, with a corporate goal to refine a project scale that is practical for any potential future field activity, optimized to recognize the carrying-costs imposed by the Crown on an annual-basis, and for the project to hold prospectivity for potential discovery and/or external interest.
About Dixie Gold Inc.
Dixie Gold Inc. (TSXV: DG) is a publicly traded exploration company holding a portfolio of exploration projects in Canada.
For more information, please visit www.dixiegold.ca
Signed,
Ryan Kalt
Chief Executive Officer
Dixie Gold Inc.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Canadian securities laws. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words "anticipate," "expect," "suggest," "plan," "believe," "intend,", "intention" "estimate," "target," "project," "should," "could," "would," "may," "will," "forecast" and other similar expressions are intended to identify forward-looking statements. Without limitation, forward-looking statements may relate to matters corresponding to the Corporation's Red Lake Gold Project, the composition of the Red Lake Gold Project and/or its standing and/or exploration plans thereon, as well as to the Claim Sale and/or matters therewith related and/or as otherwise referenced herein. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently expected or forecast in such statements.
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.
Contact Info:
Ryan Kalt
Chief Executive Officer
Dixie Gold Inc.
T: 604.687.2038
E. info@dixiegold.ca
W. www.dixiegold.ca
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