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TerraX to acquire additional claims at Yellowknife City gold project

EBR Staff Writer Published 21 January 2016

TerraX Minerals announces that it has entered into a purchase agreement with two arm's length parties for the purchase of two mining claims totaling 235 hectares (2.35 sq km) that will be incorporated into TerraX's Yellowknife City gold project.

The claims adjoin TerraX's Southbelt claim block and cover the mafic volcanic-granite contact immediately west and south of the Con Mine leases. The claims have potential strike extensions of gold bearing structures sampled by TerraX on its Southbelt property in the summer of 2015, where six of these structures returned gold values of greater than 0.5 g/t, with a high value of 94.9 g/t Au (see our news release of September 23, 2015).

Subject to acceptance for filing by the TSX Venture Exchange, TerraX will issue to the vendors 15,000 common shares each (a total of 30,000 shares) as consideration for the claims. The common shares will be subject to a four-month hold period in accordance with applicable securities laws. Each vendor will retain a 1.5% net smelter return on their claim, 1% of which can be purchased for $1,000,000.

The Yellowknife City Gold Project ("YCG") now encompasses approximately 118 sq km of contiguous land immediately north and now south of the City of Yellowknife in the Northwest Territories. Through a series of acquisitions, TerraX now controls one of the six major high-grade gold camps in Canada. Being within 15 km of the City of Yellowknife, the YCG is close to vital infrastructure, including transportation, service providers, hydro-electric power and skilled tradespeople.

The project lies on the prolific Yellowknife greenstone belt and the combined Southbelt and Northbelt properties cover 23 km of strike length on the southern and northern extensions of the shear system that hosts the high-grade Con and Giant gold mines.

The project area contains multiple shears that are the recognized hosts for gold deposits in the Yellowknife gold district, with innumerable gold showings and high grade drill results on the Northbelt property this past year that serve to indicate the project's potential as a world-class gold district. Since February 2013, TerraX has consolidated the project area by acquiring, optioning and staking numerous properties including: Northbelt, Goodwin, Ryan Lake, Walsh Lake, U-Breccia and Southbelt, as well as staking additional contiguous lands.

Source: Company Press Release