VAL D’OR, QUEBEC–(Marketwired – July 12, 2016) – Hinterland Metals Inc. (TSX VENTURE:HMI) (“Hinterland”) is pleased to announce that it has signed a Letter of Intent (“LOI”) with Beaufield Resources Inc. (TSX VENTURE:BFD) (“Beaufield”), whereby Hinterland may earn an interest in the “Lithium Rights”, defined as all elements, metals and minerals excluding precious metals (i.e., gold, silver, platinum and palladium), and base-metals (i.e., cobalt, copper, lead, nickel and zinc), attached to Beaufield’s 92-claim (4441-hectare) Troilus property (the “Property”) located in the Frotet-Evans area of Quebec, approximately 100 kilometres north of Chibougamau. An all-season gravel road starting from Chibougamau passes through the western part of the Property.
As a result of an internal review, Hinterland is retracting the mineral resource table that was included in the original press release issued earlier today. The resource table was obtained from the Perilya Ltd. website, and is not detailed enough to accurately represent the actual mineral resource estimate for the Moblan Lithium deposit prepared by Roscoe Postle Associates Inc. (“RPA”) as of May 1, 2011. To clarify, the following table below more accurately summarizes the stated RPA mineral resource estimate (Perilya Press Release, May 31, 2011).
|Measured + Indicated||9,334,000||1.54||–||–|
|*PEG1: Main Pegmatite body, **PEG2: Footwall Pegmatite body|
The RPA mineral resource estimates were prepared according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“the JORC Code”). The RPA mineral resources were estimated within Whittle pit shells at cut-off grades of 0.60% Li2O, and using an average price of $US350 per tonne of spodumene concentrate and a $US/$C exchange rate of 1:1.00. The RPA mineral resource estimate is not publically available and therefore has not been reviewed or verified by a qualified person on behalf of Hinterland.
The Troilus claims completely surround the Moblan lithium development project held by Perilya Ltd. (60%) and Soquem Inc. (40%). Although documented lithium mineralization is present on the Moblan project in several zones immediately adjacent to the boundary with the surrounding Troilus property, very little previous exploration work has been completed on the Troilus claims. Hinterland cautions that the resource for the Moblan deposit is not necessary indicative of the mineralization that may be identified on the Troilus property, and there is no certainty that future exploration on the Troilus property will result in a resource being defined. Hinterland plans to commence work immediately with a compilation of available geological data and generation of lithium exploration targets. A map of the Property can be viewed at http://www.hinterlandmetals.com/s/TroilusLi.asp
Pursuant to the LOI, Hinterland can earn a 50% interest in the Lithium Rights by issuing to Beaufield an aggregate of 2,000,000 shares (500,000 upon closing) and completing work expenditures of $1,000,000 ($200,000 in the first year) over a three year period. Upon completion of the 50% earn-in, Hinterland and Beaufield will form a joint venture with initial respective participating interests to be 50%. The transaction is subject to completion of due diligence, final documentation and approval of the TSX Venture Exchange.
Mark Fekete, P.Geo is the designated “qualified person” as defined in Section 1.2 in and for the purposes of National Instrument 43-101 that reviewed and approved the technical content of this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company’s periodic reports including the annual report or in the filings made by the Company from time to time with securities regulators. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of an unanticipated event.
Hinterland Metals Inc.