Quadro Acquires “Long Lake Gold Option” Adjacent to Marathon Gold’s Valentine Lake Deposits in Central Newfoundland - Untested Gold-in-till Targets Up to 355 Gold Grains (4.53 gpt)
Vancouver, B.C. November 28, 2019. Quadro Resources Ltd. (“Quadro” or the “Company”) (TSXV:QRO) is pleased to announce it has optioned the 192 claim unit Long Lake Gold property. The property is located along the northwest boundary of the Marathon Gold project within an under-explored belt of mineralized volcano-sedimentary and intrusive rocks. Highlights from the property includes two areas of strong gold in soil and tills which have never been followed up. The property provides an opportunity for new gold discoveries in the emerging Cape Ray Gold district and is complimentary to Quadro’s Staghorn claims located 35 km southeast of the newly acquire claims. (See attached compilation/claim sketch on page 3).
Previous work on the property dates back to 2005 when soil sampling outlined a number of gold anomalies. The historic geochemical survey was part of an on-going volcanogenic massive sulphide (base metal) program which kept the ground tied up until recently. No follow-up was carried out during that time and the area came open for staking in early 2019. The claims were staked by the underlying vendors, who took two till samples in the area of the higher gold-in soil anomaly. The samples were processed by Overburden Drilling Management Limited (ODM) with results as follows:
|Sample Number||Visible Gold Grains Total Number||Pristine Gold Grains Total Number||Calculated Gold Grade In Heavy Mineral Conc.|
The recovered gold grains consist of mostly silt-sized pristine and modified grains which suggest that the samples were collected in close proximity to the source mineralization. An exploration program consisting of prospecting, geochemistry and excavator trenching is planned once field conditions allow and permitting is approved.
The Company has not verified the above results as the soil results are historic in nature and the till sampling was completed prior to Quadro’s involvement. The till sample analytical results and comments were provided by Overburden Drilling Management Limited reports dated Nov. 4, 2019 and Nov. 6, 2019.
Pursuant to the terms of the option agreement, Quadro can earn a 100% interest in the Long Lake property by making staged cash payments totaling $100,000 over three years ($10,000 on signing)
and share issuances totaling 5,000,000 common shares over three years (500,000 shares on signing). The vendors will retain a 2% Net Smelter Royalty, half of which can be purchased for
$1,500,000. This agreement remains subject to regulatory approval.
Cape Ray Fault Description and Potential
The northeast trending Cape Ray Fault (CRF) gold structure extends across the island of Newfoundland and hosts a number of development stage and exploration stage programs. The most advanced of these is Marathon Gold’s Valentine Lake deposit located 30 km northeast of the Staghorn property, with total Mineral Resources currently comprised of Measured Mineral Resources of 16.6 million tonnes at a grade of 2.18 g/t containing 1,166,500 oz. of gold, Indicated Mineral Resources of 28.5 million tonnes at a grade of 1.66 g/t containing 1,524,900 oz. of gold and Inferred Mineral Resources of 26.9 million tonnes at a grade of 1.77 g/t containing 1,531,600 oz. of gold (Marathon Gold`s website). Other hot spots along the fault includes Matador Mining Ltd`s Cape Ray deposits, located 100 km southeast of the Staghorn property, with recently published Indicated Resources of 7.69 million tonnes @ 2.7 gpt (660,000 oz) and Inferred Resources of 6.56 million tonnes @ 1.7 gpt (360,000 oz) (Matador’s website) and Sokomon Minerals’ Moosehead Project, located 180 km northeast of Staghorn, where recent drilling intersected 44.96 gpt Au over 11.9m (Sokoman Minerals news release dated Oct 1, 2018). Mineralization hosted on adjacent and nearby properties is not necessarily indicative of mineralization hosted on the Company’s property.
Quadro’s main focus since 2017 has been the Staghorn project which is located 30 km to the southwest of Marathon, along the Cape Ray structure. Drilling is planned for this property in 2020, following up on a number of high priority targets including Ryan’s Hammer (grabs to 27.8 gpt Au) (see Company news release dated Aug 21, 2017) and Mark’s Pond (7000 ppb Au-in-soil anomaly) (see Company news release dated Nov. 6, 2018). The Long Pond Option is complimentary to the Staghorn program and adds high quality targets to the company’s Cape Ray portfolio. Both offer good potential for new gold discoveries.
Wayne Reid, P. Geo., VP Exploration for Quadro and a qualified person as defined in National Instrument 43-101, is responsible for this release and supervised the preparation of the information forming the basis for this release.
About Quadro Resources – Quadro is a publicly traded mineral exploration company. It is led by an experienced and successful management team and is focused on exploring for gold in North America. Quadro has approximately 28 million shares outstanding. The Company’s shares trade on the TSX Venture Exchange under the symbol “QRO”. Quadro owns a 100% interest in the Staghorn and Conche properties in Newfoundland.
On behalf of the board of directors,
Quadro Resources Ltd.
“T. Barry Coughlan”
President and CEO
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