SUDBURY, Ontario, June 09, 2020 (GLOBE NEWSWIRE) -- Manitou Gold Inc. (TSX-V: MTU) (the “Company” or “Manitou”) announces that it has entered into a purchase agreement with private vendors (the “Vendors”) to purchase the property known as the Shihan property, located in Rennie Township, Ontario (the “Property”). The Shihan property is contiguous with the Company’s Goudreau Project lands and the consolidated land package now spans approximately 340 square kilometers.
The property hosts a historic estimate, which was prepared for the previous owners in 2011 and which is detailed in Table 1 of this release.
| Table 1: Shihan Property 2011 Historical Estimate | |||||||
| 3% Zn Block Cut-off | |||||||
| Category | Tonnes | Zn (%) | Pb (%) | Cu (%) | g Ag/t | g Au/t | SG |
| Indicated | 103,124 | 5.57 | 0.28 | 0.12 | 122.17 | 0.36 | 3.04 |
| Inferred | 20,384 | 7.11 | 0.28 | 0.15 | 122.45 | 0.36 | 3.08 |
Mineral resources in Table 1 are reported at a cut-off grade of 3 per cent Zinc. The Indicated Mineral Resource for the Shihan VMS Deposit was classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005) by Iain Kelso, P.Geo, an appropriate independent person for the purpose of National Instrument 43-101. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Company is not treating the historical estimate as current mineral resources.
As disclosed in the 2011 technical report, previous exploration programs around the Shihan property have focused primarily on base metals but also demonstrated the presence of significant structurally controlled gold mineralization, which has not been adequately followed-up and remains to be interpreted in a regional context. Historical intercepts occur as quartz-rich fracture zones adjacent to or within an east-west trending deformation corridor that strikes onto the existing land holding to the west. Historical highlights include:
| Hole_ID | From (m) | To (m) | Width (m) | Au g/t |
| RS07-26 | 23 | 24.15 | 1.15 | 4.9 |
| RS07-06 | 30.5 | 32 | 1.5 | 3.4 |
| 80-9 | 69.7 | 70.6 | 0.9 | 5.1 |
| 80-10 | 53 | 54.2 | 1.2 | 15.8 |
| 84-9 | 79 | 80.8 | 1.8 | 18.2 |
The Company has not independently verified the above noted drill intersections.
In order to acquire its interest in the Property, the Company is required to issue an aggregate of 1,400,000 common shares to the Vendors. The Property is also subject to an existing 2% net smelter royalty in favour of a third party, one-quarter of which may be purchased by the Vendors for $500,000. The acquisition of the Property remains subject to various closing conditions, including the approval of the TSX Venture Exchange.
Richard Murphy, P. Geo is the qualified person responsible for the technical content contained in this release. He has reviewed and approved the content herein.
For further information on Manitou Gold Inc., contact:
Richard Murphy, CEO
Telephone: 1 (705) 698-1962
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Manitou, including with respect to the anticipated receipt of all closing conditions in connection with the acquisition of the Property, and the prospective nature of the Property. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.