|March 06, 2017|
Roughrider Announces Acquisition of Sabin Zinc Property, Ontario
|Vancouver, BC, March 6, 2017 - Roughrider Exploration Limited (TSX.V: REL) ("Roughrider") -- is pleased to announce that it has entered into a letter agreement with Commander Resources Ltd.("Commander") allowing Roughrider to acquire up to a 100% interest in Commander's Sabin zinc-copper-silver volcanogenic massive sulphide (VMS) project (the "Sabin Zinc Property") located in northwestern Ontario, Canada, some ten kilometres north of the community of Savant Lake. The Sabin Property is in the Sturgeon Lake greenstone belt, host to significant polymetallic VMS deposits including the Sturgeon, Mattabi, Lyon and "F' VMS mines. Mining ceased in the belt in 1991. Please see the presentation regarding the Sabin Zinc property for more details on Roughrider's web site at: http://www.roughriderexploration.com/i/pdf/presentation/presentation.pdf|
The Sabin Zinc Property was first worked by Union de Miniere Exploration (UMEX) in the 1970's. Initial work by UMEX led to the discovery of the Marchington Zone where shallow drilling on 15 metre centres outlined a small historical resource from 15 metres to 61 metres depth.
123,000 tonnes 2.9% Zn 0.7% Cu 1.3 % Pb 56 gpt Ag.
The Marchington Zone resource was defined by UMEX (based on internal company documents dated June 19, 1980), is historic in nature, is the most recent resource estimate currently available and is not to be relied upon except to provide an indication of exploration potential on the property. It was defined by exploration professionals working for major companies widely repudiated as competent, utilizing methodology accepted and relied upon as standard industry practice at the time, but that is not now compliant with National Instrument 43-101. The reader is cautioned that a qualified person has not done sufficient work to classify this historical estimate as current resources and Roughrider is not treating it as a current mineral resource.
In addition to the Marchington Zone horizon, three additional partially drill tested zones have been identified including the Kash, South and S-23 zones. Summary of geological highlights of the Sabin Zinc Property are presented below:
• Four sulphide enriched horizons indicated from drilling: Marchington, Kash, South and S-23.
• Zinc and silver-rich with low conductivity.
• Gold not consistently assayed for.
• Intermediate to felsic flows and tuffs.
• Extensive "VMS-style" alteration: Na-depletion (the presence of garnet and staurolite).
• Large historical database of drilling, litho-geochemistry and geophysics.
• No previous comprehensive compilation of data.
• Kash Zone, associated with a 990 metre Ontario Government airborne geophysical electromagnetic conductor, has be tested by a single drill hole:
• 1978 Hole SA-43 0.7metre @ 3.96% Zn, 0.15% Cu, 1.43% Pb, 18.7 g/t Ag, 0.35 g/t Au
Commander acquired the property through a purchase agreement with UMEX in 1990 and holds a 100% interest in the property except for two small internal claim parcels that are subject to a participating interest with Glencore Canada Corporation who currently hold 41.5% and 33.3%. UMEX retains a 2.5% NSR over the property that will be reduced to 1% following $225,000 of royalty payments.
Sabin Zinc Property Letter Agreement
Under the terms of the Letter Agreement, and subject to requisite regulatory approvals, Roughrider may earn up to 100% in Commander's interest in the Sabin Zinc Property by paying Commander aggregate cash payments of $1.1 million, completing $4.5 million in exploration expenditures and issuing Commander an aggregate of 4.4 million shares as follows:
• Upon signing of a Definitive Agreement on or before May 31, 2017 - a cash payment of $20,000 and issuance of 100,000 shares
• To earn a 51% interest - by the 4th anniversary, Roughrider must make additional cash payments totaling $380,000 ($400,000 in total), spend an aggregate of $1.5 million on exploration ($200,000 before the first anniversary) and issue Commander 1.3 million shares (1.4 million in total)
• To earn a 70% interest - by the 6th anniversary, Roughrider must make additional cash payment of $200,000, spend $1.5 million on exploration and issue Commander 1.0 million shares.
• To earn a 100% interest - by the 9th anniversary, Roughrider must make additional cash payments totaling $500,000, spend an aggregate of $1.5 million on exploration and issue Commander 2 million shares.
• Commander retains a 1% Net Smelter Royalty (NSR) on claims where the aggregate NSR held by all other parties is not greater than 2%.
The Sabin Zinc Property acquisition is subject to certain customary conditions including without limitation, completion by Roughrider of satisfactory due diligence in respect of the property, execution of definitive transaction documents and receipt of all necessary regulatory and third party approvals, including the approval of the TSX Venture Exchange.
David Tupper, P. Geo. is a qualified person within the context of National Instrument 43-101, and has read and takes responsibility for the technical aspects of this release.
About Roughrider Exploration Limited
Acquisition of the Sabin Zinc Property broadens Roughrider's exploration focus and marks a new opportunity for the company.
With a work program budgeted for 2017, Roughrider is continuing exploring the 131,412 hectare (324,728 acre) Genesis uranium project located in the Wollaston-Mudjatik geological trend extending northeast from Saskatchewan's Athabasca Basin. Roughrider has the option to earn an 85% interest in Genesis from Kivalliq Energy Corporation.
For further information, please contact:
Chief Executive Officer
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 of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements." All statements, other than statements of historical fact, are to be considered forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the company, are inherently subject to significant business, economic, geological and competitive uncertainties and contingencies. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include but are not limited to: fluctuations in market prices, exploration and exploitation successes, continued availability of capital and financing, changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and general political, economic, market or business conditions. Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance and, therefore, readers are advised to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in this press release, or incorporated by reference, are qualified by these cautionary statements. We do not assume any obligation to update any forward-looking statements.
UNITED STATES ADVISORY
The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), have been offered and sold outside the United States to eligible investors pursuant to Regulation S promulgated under the U.S. Securities Act, and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the United States Securities Act) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available. Hedging transactions involving the securities must not be conducted unless in accordance with the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.
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