MONTREAL, QUEBEC–(Marketwired – June 16, 2016) – J.A.G. Mines Ltd. (JAG) (TSX VENTURE:JML) and its subsidiary Olitra welcome with great interest the recent announcement made by the Minister of Energy and Natural Resources, Mr. Pierre Arcand, offering his support to a new oil project in the region of Témiscouata (Lower St-Lawrence). Specifically, it is a project of the company Squatex Energy and Resources Inc., and it is located near Rimouski.
JAG and its subsidiary are strongly involved in this region, unexplored prior to their arrival in 2006. Since then, JAG and Olitra have made important exploration works to assess the conventional hydrocarbon potential of this vast region of the MRC of Témiscouata. These works were directed by the geologist Marc Richer-Laflèche, Ph.D. of the “Institut National de la Recherche Scientifique (INRS)”. Because of their geographical position between the three borders (Quebec, Maine and New Brunswick), the JAG properties are situated close to transportation infrastructure (roads, port, etc.), and they cover 222 606 hectares (556 515 acres). They are also located immediately south of the discovery of oil, condensates and natural gas by Squatex Energy and Resources Inc. in the Rimouski sector. (Well Massé #2).
The geologist Marc Richer-Laflèche wrote: “Scientific studies demonstrate that the source of the hydrocarbons found in various deposits of the Bas St-Laurent and Gaspésie would be located in Ordovician units rich in organic material in depth. Conceptually, the presence of coral reefs and coarse sandstone related to Gaspé sandstones observed on the properties of JAG and Squatex would potentially be hydrocarbon reservoirs. To support this hypothesis, JAG and Olitra conducted Soil-gas surveys on its properties and from a database of over 3264 samples, of a high resolution gravimetric survey, of a radiometric gamma survey, of audio-magnetotelluric surveys and of a structural study, three exploration targets have been prioritized and one of them runs along the Squatex property which is the host of the well Massé #2.
Considering that the stock market is not currently very favourable for the financing of important exploration works, JAG and its subsidiary favour rather an association with financial partners for the resumption of the works on its Temiscouata properties, which are at an advanced stage of exploration.
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J.A.G. Mines Ltd.