Tickers: XTSX:GBR
Tags: Mining
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March 18, 2015 / TheNewswire.ca / Vancouver, BC, Canada. - Great Bear Resources Ltd. (the "Company" or "Great Bear", TSX-V: GBR) and Osisko Exploration James Bay Inc., a wholly owned subsidiary of Osisko Gold Royalties Ltd. ("Osisko", TSX: OR) are pleased to announce the signing of a new Option and Joint Venture Agreement on the Lac Pau gold project located in the James Bay Lowlands of Quebec, wherein Great Bear can earn a 50% interest.
Key features of the Lac Pau project are:
-Very large gold mineralized system defined by drilling, till geochemistry and geophysics, spanning 12 km2
-Drill results include both high grade structurally controlled gold mineralization returning up to 69.78 g/t gold over 1.5 m and bulk tonnage gold returning 0.97 g/t gold over 69 m
-Year-round road access and close proximity to other critical infrastructure in central Quebec
Andre Gaumond, Senior Vice President of Osisko stated, "We are pleased to join forces with the team at Great Bear, who share our vision of the exploration potential of the Lac Pau gold project. Past work was focused on certain targets on the property, but our partners came to us with a desire to focus on exploring the high grade targets."
Chris Taylor, CEO of Great Bear stated, "Quebec is one of the top mining destinations in the world and the Company is eager to get to work in such a favorable jurisdiction. The opportunity to join forces with the newly merged team that found and developed the Canadian Malartic mine and Eleonore discovery is a unique opportunity for a junior exploration company like Great Bear. We are eager to follow up on the high grade gold discoveries at Lac Pau, and anticipate the year-round road access and at-surface gold mineralization will support a successful and cost-effective exploration campaign."
Both Great Bear and Osisko believe several high priority targets warrant immediate follow-up work. In particular, structurally-hosted high grade gold targets have been drilled and sampled along more than 20 km of strike and remain open along strike and at depth. Great Bear looks forward to working with Osisko's highly qualified exploration team, whose track record of discovery and mine development speaks for itself through the recent merger of Virginia Gold Mines Inc. and Osisko.
Highlights of historical drill results are presented in Table 1.
-------------------------------------------------------------- |Hole** | |Width (m)*|Au (g/t)|Area | |------------------------------------------------------------| |PAU-10-028ext| |1.50 |5.86 |Jedi | |------------------------------------------------------------| |PAU-11-044 | |1.20 |69.78 |Hope Showing| |------------------------------------------------------------| |PAU-11-044 |including |0.70 |112.50 |Hope Showing| |------------------------------------------------------------| |PAU-11-040 | |5.50 |3.56 |Jedi | |------------------------------------------------------------| |PAU-11-040 |including |1.25 |12.05 |Jedi | |------------------------------------------------------------| |PAU-11-040 |and |1.50 |5.89 |Jedi | |------------------------------------------------------------| |PAU-11-34 | |10.90 |1.26 |Jedi | |------------------------------------------------------------| |PAU-11-34 |including |1.50 |4.20 |Jedi | |------------------------------------------------------------| |PAU-13-062 | |1.50 |11.50 |Jedi | |------------------------------------------------------------| |PAU-12-058 | |69.00 |0.97 |Jedi | |------------------------------------------------------------| |PAU-12-058 |including |31.50 |1.74 |Jedi | |------------------------------------------------------------| |PAU-12-058 |and including|1.50 |5.91 |Jedi | --------------------------------------------------------------
* Width is measured as downhole core length and does not indicate true width
** Sources: http://minesvirginia.com/en/index.php/press-en/virginia-mines-inc-update-on-winter-2011-drilling-programs-in-james-bay/ for Holes 028Ext, 044, 040,34
2014_Pau_July2014.ppt (Internal document) for holes PAU-062 and 058
The Agreement
Under the terms of the Agreement, Great Bear must issue 1,000,000 shares and complete $4 million dollars of exploration expenditures over five years to earn a 50% interest in the Lac Pau project as follows:
-Issue 200,000 shares annually over the course of the earn-in, and
-Complete $1,000,000 in exploration expenditures over the first two years of the agreement
-Complete $500,000 in exploration expenditures over the third year of the option, and
-Complete $750,000 annually in exploration expenditures over the next two years of the option, and
-Complete $1,000,000 in exploration during the final year of the option
During the course of the earn-in, Osisko will be the operator and Great Bear will have final say on exploration decisions. After earning its 50% interest, a Joint Venture will be formed to continue advancement of the project. If at any time subsequent to earning-in, should Great Bear's interest be reduced to under 10%, Great Bear will retain a 2.5% Net Smelter Royalty on the property, 1.5% of which can be purchased by Osisko for $1M.
Management Changes
Great Bear is also pleased to announce that Mr. R. Bob Singh, P.Geo has joined the board of directors of the company and will be taking on the role of Vice President of Exploration. In addition, Mr. Allan Barry Laboucan has been appointed as Special Advisor.
Mr. Singh has over 25 years of mineral exploration experience with a number of publicly traded mining companies, specializing in mesothermal and orogenic gold systems, and is also an expert in advanced geological modeling. Since early in his career, Mr. Singh has applied a high level of science and technology to mineral exploration which has resulted in numerous discoveries of gold and base metal systems. Mr. Singh's combination of public company management experience, strong geological modeling skills and exploration project management experience in several gold belts make him an ideal addition to the Company's management team as Great Bear begins exploration at Lac Pau.
Mr. Laboucan is a frequent guest on various business television programs and is the founder of Allan Barry Reports, a leading multi-media resource focused on analyzing commodities, resource stocks and market trends. Mr. Laboucan also holds the position of Chief Market Commentator at Agoracom.com, a leading small to mid-cap investment forum. Mr. Laboucan is a proud member of Canada's First Nations and will also assist the Company with building a strong partnership with local First Nations.
Great Bear would also like to announce the resignations of Mr. Dave Antony, and Mr. Borden Putnam as Directors of the Company, due to other time commitments. Mr. Putnam will remain a Technical Advisor to the Company moving forward. The Company thanks both gentlemen for the time they've devoted to the Company thus far and wishes them great success in their future endeavors.
Mr. R. Bob Singh, P.Geo, is the Qualified Person as defined by National Instrument 43-101 responsible for the accuracy of this news release.
For further information please contact Mr. Chris Taylor, M.Sc. P.Geo, President and CEO at 604-681-0037, or Allan Barry Laboucan, Special Advisor, at 604-505-4753.
ON BEHALF OF THE BOARD
"Chris Taylor"
Chris Taylor, President and CEO
Inquiries:
Tel: 604-681-0037
Fax: 604-681-0094
Neither 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 o this release.
This new release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.
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