Precipitate to Acquire Dominican Republic
Concession Bordering GoldQuest
Vancouver, B.C., August 16, 2012
- Precipitate Gold Corp
(TSXV: PRG) announces that it has entered into a
Letter Agreement dated August 16, 2012 with the
shareholders of a private BC registered company (“BC
Corp”) to purchase the company. BC Corp holds a
100% interest in the rights to acquire two mineral
Concessions in the Dominican Republic that are
currently under application. The larger concession,
Juan de Herrera (“JDH”), totals 15,020
hectares in area and directly adjoins the Tireo belt
holdings of GoldQuest Mining Corp on their southwest
and south sides. The second concession, Higos
Blancos is 3,231 hectares and covers part of a
large exposure of Tireo formation rocks to the east
of the GoldQuest trend. A
concession map is available on Precipitate’s
website.
Commenting on the news Michael
Moore VP, Exploration states “It’s very impressive
how many new discoveries have come out of the Tireo
belt in such a short time. The area was clearly
subject to a significant regional scale mineralizing
event that has left the Trend with a gold endowment
that is impressive in terms of both broad areal
extent and intensity. There is very little high
quality land available in the Tireo belt and we’re
pleased and excited to be able to acquire over
18,000 hectares of highly prospective concessions.”
The “Tireo Trend”
The Tireo formation is an Upper
Cretaceous aged package of volcanic and sedimentary
rocks that occurs in the western portion of the
Dominican Republic, trending northwesterly and
ending north of the Dominican-Haitian border. These
rocks were largely unexplored until GoldQuest Mining
Corp in joint venture with Goldfields Ltd carried
out regional silt and prospecting programs ten years
ago that highlighted several new areas of gold
mineralization hosted in Upper Tireo volcanic rocks.
Subsequent work by GoldQuest led to the discovery of
several distinct areas of mineralization through the
company’s 35 km long group of concessions, notably
(from north to south) Los Comios, Romero, La
Escandalosa, Loma Viejo Pedro and Jenjibre. Drilling
at Escandalosa Sur has defined a 43-101 complaint
Inferred Resource of 4.88 million tonnes grading 2.6
g/t gold in a flat lying near surface zone (after
GoldQuest website August 15, 2012).
The Romero Discovery
The Tireo Trend recently gained
major prominence when GoldQuest announced its latest
discovery, Romero, north of Escandalosa on the las
Tres Palmas concession. Three holes have been
reported so far from Romero including the following
notable intercepts (after GoldQuest website August
15, 2012):
Hole 90: 231 metres grading 2.41
g/t Gold and 0.44% Copper
Hole 92: 159 metres grading 4.45
g/t Gold and 0.95% Copper
Hole 93: 258 metres grading 4.50
g/t Gold and 1.30% Copper
Mineralization at Romero, like
Escandalosa, is hosted by Upper Tireo dacites.
GoldQuest is continuing its drill program with two
rigs and plans to add a third rig shortly. The
Romero discovery remains open in all directions.
Other Discoveries within
GoldQuest’s Tireo holdings
(After GoldQuest website August 15, 2012)
GoldQuest has made several other
discoveries within its Tireo belt holdings that are
at an earlier stage of exploration. At Loma Viejo
Pedro, GoldQuest discovered a three kilometre long
gold in soil and rock anomaly covering areas of
pyritically and argillically altered Tireo formation
rocks. Grab samples from the area have returned up
to 13.8 g/t gold and several anomalous samples
including at least one 5+ g/t gold sample were taken
on ground now covered by Precipitate’s Juan de
Herrera concession application. This concession
surrounds the Loma Viejo Pedro occurrence on its
west, east and south sides. At Jenjibre at the
southern end of GoldQuest’s Tireo belt holdings
several areas of argillic altered andesitic tuffs
with coarse disseminated pyrite, chalcopyrite,
sphalerite and barite were discovered. Channel
sampling at the principal Jenjibre showing returned
59.5 metres grading 1.58 g/t gold and 55.75 g/t
silver. The Juan de Herrera concession
application borders the Jenjibre area to the west
and partially to the south. Precipitate is in
discussions with GoldQuest for access to their
exploration data for areas covered by the Juan de
Hererra concession application.
Regional Tireo Trend Discoveries
In addition to the GoldQuest
discoveries recent work by Unigold Inc (UGD-V) has
led to several discoveries on its Neita project
located to the northwest of GoldQuest within similar
geology. Unigold is drilling at Neita in advance of
preparation of a maiden 43-101 compliant resource
calculation for the Candelones zone. Further to the
northwest on the Haitian side of the border JV
partners Eurasian Minerals (EMX-V) and Newmont (NEM-T)
are drilling at the Savane La Place prospect on
their La Miel project. La Miel is described as
epithermal mineralization occurring in the same
Tireo rock sequence where previous trenching has
returned up to 243 metres grading 1.71 g/t gold
(After Eurasian Minerals website August 15, 2012).
However, it should be noted that there is no
certainty that future exploration will result in
discovery of mineral deposits similar to the
foregoing descriptions, or in any mineral deposits.
BC Corp Agreement
Precipitate can earn a 100%
interest in BC Corp by meeting the agreement terms
which include cash payments totaling $450,000,
issuance of an aggregate of 3 million common shares
and the completion of $1.0 million in aggregate
exploration expenditures. A $60,000 cash payment, as
part of the total payments, is due upon execution of
a formal agreement and with all other obligations
due up to three years after the anniversary date of
the final concession being fully granted by the
Dominican Republic authorities. A 3% NSR is payable
to the BC Corp shareholders, 1.5% of which can be
purchased by Precipitate for $2.0 million.
Precipitate’s management
continues to review multiple acquisition
opportunities in the Dominican Republic and
elsewhere seeking out other projects that can
enhance shareholder value.
Michael
Moore, VP Exploration of the Company and Qualified
Person for purposes of National Instrument 43-101
has reviewed the technical information in this news
release.
On Behalf of the Board of
Directors For
further information contact:
“Darcy Krohman”
Investor Relations
President &
CEO
Tel: 604-558-0338
Precipitate Gold Corp.
Toll Free:
1-855-558-0335
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responsibility for the adequacy or accuracy of this
release.
This
press release may contain "forward-looking
information" within the meaning of applicable
Canadian securities legislation. All statements,
other than statements of historical fact, included
herein are forward looking information. Generally,
forward-looking information may be identified by the
use of forward-looking terminology such as "plans",
"expects" or "does not expect", "proposed", "is
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anticipate", or "believes", or variations of such
words and phrases, or by the use of words or phrases
which state that certain actions, events or results
may, could, would, or might occur or be achieved.
This forward-looking information reflects
Precipitate Gold Corp.’s (“Precipitate” or the
“Company”) current beliefs and is based on
information currently available to Company and on
assumptions it believes are reasonable.
Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that
may cause the actual results, level of activity,
performance or achievements of Precipitate to be
materially different from those expressed or implied
by such forward-looking information. Such risks and
other factors may include, but are not limited to:
the exploration concessions may not be granted on
terms acceptable to the Company, or at all; general
business, economic, competitive, political and
social uncertainties; the concessions acquired by
the Company may not have attributes similar to those
of surrounding properties; delay or failure to
receive governmental or regulatory approvals;
changes in legislation, including environmental
legislation affecting mining; timing and
availability of external financing on acceptable
terms; conclusions of economic evaluations; and lack
of qualified, skilled labor or loss of key
individuals. Although Precipitate has attempted to
identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other
factors that cause results not to be as anticipated,
estimated or intended. Accordingly, readers should
not place undue reliance on forward-looking
information. Precipitate does not undertake to
update any forward-looking information, except in
accordance with applicable securities laws.
