Ace Project, Newfoundland, Canada

Latest News from Ace

In October 2021 the Company commenced project-wide prospecting and geological mapping program. Initially field crews will focus on the newly identified Ace Zone; a 10 - 20 metre wide alteration and shear zone that trends northeast-southwest, with select grab rock samples up to 5.4 g/t gold. Crews will then expand the exploration focus to cover prospective areas where limited past exploration, including government till samples that reported anomalous pathfinder elements (located approximately 2.5 kilometres north of the Ace Zone) and outcropping rocks on the western side of the project.

The core objective for this phase of work is to utilize detailed prospecting and surface sampling to discover new mineralized zones to complement the existing Ace zone as potential areas for follow up ground geophysical surveying, which ultimately would refine prospective drill targets for an initial first phase of drilling. Additionally, the Company submitted an exploration permit application for project-wide airborne geophysical and geochemical (till and lake) sampling surveys, which the Company intends to initiate as a follow-up to the ground program.

In October 2021, the Company announced it had secured exclusive rights to acquire a 100% interest in three mineral exploration licenses totaling 2,500 hectares making up the Ace Gold Project (the “Ace Project” or the “Project”) located at the northern end of the Exploits Subzone (Dunnage Tectonic Zone) of north-central Newfoundland, Canada.

Ace Project Highlights:

  • Along trend about 13 kilometres Northeast from (i) Ethos Gold Corp’s Toogood Property (reported high grade grab samples included: 7,877, 1,276, 1,113, 226 g/t Au) and (ii) Exploits Discovery Corp’s Quinlan Veins (reported sample results include: 61.3, 59.0, 14.4, 14.2, and 12.6 g/t Au) (1)
  • Historical reported visible gold and select rock grab samples up to 164 g/t gold in ‘Change Island’ mineral occurrence about 1 kilometer to northeast of property border.
  • Recent new discovery of the Ace Zone; a 10-20 metre wide alteration and shear zone with select grab rock samples up to 5.4 g/t gold.
  • Ace Zone trends northeast-southwest and is situated along the projected trends of numerous high grade gold occurrences of nearby exploration projects.
  • Underlain by Exploits Subzone rocks (Dunnage Zone); highly prospective lithologies that host significant gold mineralization across central Newfoundland, including Marathon Gold Corp’s Valentine Project which hosts 3.14 Moz M&I at a grade of 1.72 g/t gold.(2)
  • Paved highway and high voltage electrical power lines bisects island in a north-south direction.
  • Accessible subdued topographical terrain, with excellent outcrop exposure on seashores and local hill tops.
  • Accessible by 20-minute Newfoundland government vehicle ferry departing hourly.

For reference: g/t = grams per tonne, Au = gold, m = metres. Moz = million ounces

Ace Location and Geology

The Ace Gold Project is located on the north-central coast of Newfoundland, covering most of Change Island, approximately 80 kilometers north (via combined road and 20-minute government vehicle ferry departing hourly) from the community of Gander and its international airport. The region is part of an active gold exploration region that includes high profile gold exploration projects such as Queensway (New Found Gold Corp), Kingsway (Labrador Gold Corp), Dog Bay (Exploits Discovery Corp) and Toogood (Ethos Gold Corp).
Project lithologies are part of the major regional Dunnage Tectonostratigraphic Zone, specifically the Exploits Subzone, where claims are dominantly underlain by Ordovician-Silurian age Badger Group sediments and Botwood Group non-marine volcanics, with a general NE-SW trend and sub vertical dip. Project gold mineralization identified to date is associated with possibly orogenic quartz veins, silicification and sulphide minerals pyrite and arsenopyrite, with lesser chalcopyrite and galena; often concentrated within bedding conformable shears and conjugate brittle faults.

Ace Property Option Terms

The Company has entered into a property option agreement granting Precipitate the exclusive right to earn a 100% interest in 2,500 hectares of three property mineral exploration licences (the “Property”) by fulfilling certain elective annual cash and share payments over a 4-year option term, as follows:
Date Cash Precipitate Common Shares
On closing $15,000 200,000
12 month Anniversary $20,000 250,000
24 month Anniversary $25,000 300,000
36 month Anniversary $30,000 350,000
48 month Anniversary $40,000 500,000
In addition, the Company will reimburse the Vendors for staking costs totaling $6,500. Upon completion of the cash and share payments as set out above, Precipitate will have a 100% interest in the Property, subject to certain net smelter returns (“NSR”) of 1.5% granted to the Vendors by Precipitate. Precipitate will have the exclusive right to purchase up to 1.0% of the NSR from the Vendors at any time for $500,000 per 0.5% and retain a right of first refusal to purchase the balance of all NSRs at any time.

The property option agreement is subject to TSX Venture Exchange approval.

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