TORONTO, July 07, 2020 (GLOBE NEWSWIRE) -- Q-Gold Resources Ltd (TSXV: QGR) (“Q-Gold” or the “Company”) is pleased to provide the following 2020 work plan update for its claims in the Mine Centre area. This work plan is funded by from the proceeds of the exercise of warrants announced last week.
“Given the recent strength in the price of gold along with its favorable outlook, our team has decided to conduct a thorough review of Q-Gold’s claims in the Mine Centre area to determine the best approach to unlocking shareholder value,” commented Evan Veryard, Chief Executive Officer of Q-Gold. “While today’s market is often in search for ‘elephant’ deposits, we believe this creates an opportunity to find value in smaller, overlooked deposits.”
2020 Mine Centre Area Work Plan
- Data Review: Since 2008, over $3.5M has been spent developing the properties in Mine Centre, however no site work has been completed since 2012. Given today’s strength in precious metals pricing and an associated positive outlook, management has determined that these properties warrant further consideration and will conduct a thorough review of all past work in order to determine the best opportunity to unlock value for shareholders. This includes previous work at the Foley gold mine, the Golden Star gold mine, and the McKenzie-Grey property, among others.
- Site Reclamation and Inspection: Based on information recently brought to management’s attention, Q-Gold will carry out reclamation work that includes fencing of test pits, trenches and other openings, and the removal of historical hazards in order to maintain the claims in accordance with Ministry requirements. This ensures we operate in an environmentally conscious manner and remove potential barriers to receiving any necessary exploration permits. Further, based on historical infrastructure development (mine shafts, drifts, etc.) along with more recent development work (dewatering, drilling, etc.), the Foley mine presents the best immediate opportunity to unlocking value for shareholders. Since no work has been completed on-site since 2012, an evaluation of the current infrastructure is required to determine the feasibility of further development based on Q-Gold’s available resources.
“Based on prior work, there is an opportunity to define a resource across Q-Gold’s claims in the Mine Centre area,” commented Mr. Veryard. “With a more favorable economic environment for the gold mining industry, as well as Q-Gold’s recent cash inflow, we are now better positioned to grow the Company’s assets.”
About Q-Gold’s Mine Centre Area Claims
Q-Gold owns claims to historic gold mines and prospects contained in more than 10,000 acres of contiguous properties in the Mine Centre area. Over 100 gold‐bearing surface quartz veins have been already identified in this classic high‐grade Archean lode gold system, and Mine Centre area sits in the middle of two major discoveries: Rainy River and Osisko Mining (90 km on either side).
Of note in the Mine Centre Area are two historic gold mines, Foley and Golden Star, as well as a silver/gold discovery on the McKenzie Gray property. Since 2005, over 5,900 m of drilling was completed at the Foley gold mine with the goal of delineating veins. Since 2009, over 6,500 m of drilling was completed at the McKenzie Gray deposit with the goal of defining the mineralized zone at depth and at edges. The Golden Star mine has not yet been drilled by Q-Gold. Further exploration drilling is required on all claims to determine the size of the deposits and define a resource.
About Q-Gold Resources Ltd.
Q-Gold is a publicly traded Canada-based mineral exploration company currently exploring for precious and base metals on its Ontario mineral claims.
For further information, contact:
Evan Veryard
Chief Executive Officer
+1 416 571 9037
evan.veryard@qgoldresources.com
Cautionary Notes
Certain statements in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding the use of proceeds from the exercise of warrants, the Company’s work plan and beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. In particular, the company cautions that the completion of the proposed acquisitions cannot be predicted with certainty, and that there can be no assurance at this time that the proposed acquisitions will be completed in the manner noted above or at all. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, as well as other factors beyond the Company's control. The Company does not undertake to update any forward looking information, except in accordance with applicable securities laws.
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