Evolving Gold Acquires 56 km2 Lithium Lakes Project Near Nemaska Lithium's Whabouchi Deposit
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Evolving Gold Corp. /
Evolving Gold Acquires 56 km2 Lithium Lakes Project Near Nemaska Lithium's
Whabouchi Deposit
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The issuer is solely responsible for the content of this announcement.
VANCOUVER, British Columbia, June 16, 2016 (GLOBE NEWSWIRE) -- Evolving Gold
Corp. (CSE:EVG) (FSE:EV7) (OTCPK:EVOGF) (the "Company") announces that it has
executed a Purchase and Sale Agreement ("Agreement") with an arm's length party
to acquire 105 mineral claims in four blocks, in Quebec. The Lithium Lakes
Property (the "Property") is located about 10 kilometres ("km") north of the
"Route du Nord" and between 8 and 30 km from Nemaska Lithium's Whabouchi
Project. The Lithium Lakes main claim block extends 15 km in a NE-SW direction
and 6 km in a NW-SE direction. The Property has 8 high priority targets
prospective for lithium-bearing pegmatite bodies, including two that are
approximately 3.5 km long that were selected based on a geological
interpretation of historical magnetic, spectrometric and geochemical surveys and
their association with topographic features.
Evolving Gold's Chief Executive Officer, Mr. R. Bruce Duncan stated, "We look
forward to beginning the initial exploration phase of the Lithium Lakes Project,
which is in the same geological formation as Nemaska Lithium Inc.'s Whabouchi
Deposit. Evolving Gold currently has approximately CAD $1,100,000 on hand, and
continues to hold a promissory note due from GFG Resources on July 28(th), 2016
for USD $600,000, thereby eliminating any need for financing at this time. The
Company is currently developing plans for a field exploration program, which
will be initiated as soon as possible.
According to a Canaccord Genuity report issued May 17(th), 2016: "We forecast
the lithium market to grow by 81% to 347kt lithium carbonate equivalent (LCE) by
2020, and by 259% to 687kt LCE by 2025, representing a Compound Annual Growth
Rate of 14% across all demand sectors. We anticipate Li-ion battery-based
electric vehicles (passenger vehicles & electric buses) to be a key driver of
demand over the next decade, accounting for 38% of all lithium demand by 2025
(from ~6% in 2015). Similarly, we also anticipate significant demand for lithium
from the grid storage sector, which we forecast will account for 13.6% of all
demand by 2025."
Terms of the Agreement
Pursuant to the Agreement, the Company has agreed to issue to the Vendor a total
of 300,000 common shares upon the approval of the transaction by the TSX Venture
Exchange. The Company has also agreed to pay the Vendor CAD$40,000 with
CAD$10,000 already paid in advance as a non-refundable deposit.
The Lithium Lakes Claims are subject to a one percent net smelter returns
royalty (1% NSR) whereby EVG will have the right, at any time, to acquire one-
half of the Royalty (0.5% NSR) by paying $500,000 to the royalty holder.
About the Lithium Lakes Property
The Lithium Lakes Property is located about 10 km north of the "Route du Nord"
and between 8 and 30 km from Nemaska Lithium's Whabouchi Project. To view the
Property location map, please click here http://www.evolvinggold.com/i/img/evg-
figure1.jpg. The road originates from the town of Chibougamau, approximately
250 km to the SSE, and connects the village of Nemiscau and the Route de la
Baie-James. The Lithium Lakes main claim block extends 15 km in a NE-SW
direction and 6 km in a NW-SE direction. A network of Hydro-Québec access roads
crosses the eastern part of the Property. Several prospective areas may require
the construction of ATV trails for local ground access.
The Lithium Lakes Property is comprised of 4 blocks of claims, totalling 105
active claims located on public land. To view a map of the Lithium Lakes claim
locations, please click here http://www.evolvinggold.com/i/img/evg-figure2.jpg.
The Property has a total area of 5,596.5 ha or 55.965 km(2).
Geology
The Property geology is similar to that found at the Whabouchi Deposit, owned by
Nemaska Lithium, which is located a few kilometres to the south-west. To view a
map of the regional geology, please click
here http://www.evolvinggold.com/i/img/evg-figure3.jpg. The main basement rocks
are Archean gneiss, overlain by a volcano-sedimentary belt, metamorphosed into
biotite-silimanite schists to the south and adjacent to a granodioritic porphyry
to the north. Fragmented horizons of amphibolitized ultramafic and Archean
granitic intrusions are also part of the Property. Pegmatite sills and dykes are
thought to originate from the granitic intrusions.
About Nemaska Lithium's Whabouchi Project
The Whabouchi lithium and beryl deposit owned by Nemaska Lithium is located 8 km
south-west of the western boundary of the Lithium Lakes Property. Nemaska
Lithium's Whabouchi Updated Feasibility Study Shows a Pre-Tax NPV at 8% Discount
Rate of $1.9 B (After-Tax $1.16 B) and a Pre-Tax IRR of 37.7% (After-Tax
30.3%). NI 43-101 resources were evaluated by SGS in 2014 and were reported as
follows:
Table 1: Whabouchi, NI 43-101 Resource Estimate
Category Tonnage Li2O %
--------------------------------------------------
Measured 12,998,000 1.60
Indicated 14,993,000 1.54
Measured and Indicated 27,991,000 1.57
Inferred 4,686,000 1.51
Most of the historical work in the area surrounding the Whabouchi Deposit was
performed beyond the boundaries of the Lithium Lakes Property, in the greenstone
belt located south of the Property. The Property was subject to historical
electromagnetic, magnetic, and spectrometric surveys, along with a geological
reconnaissance survey and lake sediment elemental analysis.
Target Generation
The five different historical surveys were used to generate high probability
targets for lithium exploration. The specific parameters observed at Nemaska
Lithium's Whabouchi Deposit are similar to the geophysical and geochemical
anomalies observed at various locations on the Lithium Lakes Property.
Magnetic Survey:
The 2008 magnetic survey was examined to find areas of low magnetic intensity,
which could correspond to the location of granite and pegmatite due to their
expected contrast with the surrounding paragneiss. Topographic highs are also
indicators of rock units resistant to erosion, such as pegmatite and granite.
Areas with low magnetism associated with an elevated topography were considered
significant targets and 22 such anomalies were defined.
Spectrometric Survey:
The 2009 spectrometric survey was then analysed to find areas of high emission,
which could indicate the presence of minerals that may be associated with
pegmatite complexes and potential lithium mineralization. The high
spectrometric emission areas that correlate well with the magnetic survey
results indicate that there are 8 anomalies that meet the combined high
topographic, low magnetic and high spectrometric criteria, and could potentially
be mineralized pegmatites.
Lake Sediment Survey:
Interpretation of the regional lake bottom sediment analysis data enabled the
definition of exploration targets on the Property. The elements identified in
the lake sediment assays were considered anomalous when they exceeded twice the
background value of the sediment population. The population was determined by
selecting the lake sediment assays located in the gneiss geological formation.
The background was calculated using the mean value for each element in that
population. The source of the lake sediment anomalies could be mineralization
proximal to the lakes, or could also be derived from transported glacial till.
Most of the material in the lake sediments is derived from glacial till.
Exploration targets were considered high priority if lake sediment anomalies
were found down ice to the targets generated by the topographic, magnetic, and
spectrometric analysis. All 8 of the high-priority targets defined following
spectrometric analysis are associated with lake sediment anomalies, while 9
additional lake sediment anomalies are related to the targets defined by the
magnetic survey alone.
RESULTS
The combination of topographic, magnetic, spectrometric and lake sediment
analysis allowed the definition of 8 anomalous areas which are highly
prospective for lithium mineralization hosted in pegmatite bodies. To view a map
of the Whabouchi pegmatite associated lake sediment anomalies, please click here
http://www.evolvinggold.com/i/img/evg-figure4.jpg. To view a map of the highly
prospective targets on the Lithium Lakes Property, please click
here http://www.evolvinggold.com/i/img/evg-figure5.jpg. Table 2, below, provides
a summary of the data leading to the selection of the high priority Lithium
Lakes Property targets. Table 3, below, provides a comparison of observed
parameters seen at the Lithium Lakes targets and the Whabouchi deposit. Readers
should be cautioned that the mineralization hosted on Nemaska Lithium's
Whabouchi Project is not necessarily indicative of the mineralization hosted on
the Company's Lithium Lakes Property.
Table 2 - Property Exploration Targets
+-----------------+------------+------------+--------------------+-------------+
|Target |Magnetism |Spectrometry|Lake Sediment |Length of the|
| | | |Anomalies | Anomaly (m)|
+-----------------+------------+------------+--------------------+-------------+
| | | |S, As, Bi, Co, Hg, | |
|Whabouchi Deposit|Close to low|N/A |Li, Nb, Re, Sb, U, | |
| | | |V, W, REE | 2,000|
+-----------------+------------+------------+--------------------+-------------+
|T1 |Low |High |S, Re, Cu, Ni | 3,500|
+-----------------+------------+------------+--------------------+-------------+
|T2 |Low |High |U, Re, REE, Cu, Zn | 3,500|
+-----------------+------------+------------+--------------------+-------------+
|T3 |Low |High |As, Co, V, Mo, Ag | 1,000|
+-----------------+------------+------------+--------------------+-------------+
|T4 |Low |High |Re, Pt | 1,500|
+-----------------+------------+------------+--------------------+-------------+
|T5 |Low |High |Re, Pt | 1,500|
+-----------------+------------+------------+--------------------+-------------+
|T6 |Low |High |REE, Re, Be, Th, Cu,| 1,500|
| | | |Zn | |
+-----------------+------------+------------+--------------------+-------------+
|T7 |Low |High |REE, Be, Th | 1,500|
+-----------------+------------+------------+--------------------+-------------+
|T8 |Low |High |Re, REE, Cu, Zn | 1,500|
+-----------------+------------+------------+--------------------+-------------+
Table 3 - Similarities Between the Lithium Lakes Targets and the Whabouchi
Deposit
+--------------+---------------+-----------------+---------------+-------------+
| | | |Geochemical |Length of the|
|Target |Geology |Lithium Host |Anomalies |Pegmatite |
| | | | |Complex(m) |
+--------------+---------------+-----------------+---------------+-------------+
| |Paragneiss of | |S, As, Bi, Co, | |
|Whabouchi |the Champion |Complex Pegmatite|Hg, Li, Nb, Re,| |
|Deposit |Lake Formation | |Sb, U, V, W, | |
| | | |REE | 2,000|
+--------------+---------------+-----------------+---------------+-------------+
|T1 | | |S, Re, Cu, Ni | 3,500|
+--------------+ | +---------------+-------------+
|T2 | | |U, Re, REE, Cu,| 3,500|
| | | |Zn | |
+--------------+ | +---------------+-------------+
|T3 | | |As, Co, V, Mo, | 1,000|
| | | |Ag | |
+--------------+Paragneiss of |Complex Pegmatite+---------------+-------------+
|T4 |the Champion |Revealed by Low |Re, Pt | 1,500|
+--------------+Lake Formation |Magnetism and +---------------+-------------+
|T5 | |High Spectrometry|Re, Pt | 1,500|
+--------------+ | +---------------+-------------+
|T6 | | |REE, Re, Be, | 1,500|
| | | |Th, Cu, Zn | |
+--------------+ | +---------------+-------------+
|T7 | | |REE, Be, Th | 1,500|
+--------------+ | +---------------+-------------+
|T8 | | |Re, REE, Cu, Zn| 1,500|
+--------------+---------------+-----------------+---------------+-------------+
Remi Charbonneau, Ph.D., P. Geo #290 (an Associate of Inlandsis Consultants
s.e.n.c.) is an Independent Qualified Person under National Instrument 43-101,
and has reviewed and approved the technical information provided in this news
release.
On Behalf of the Board of Directors
EVOLVING GOLD CORP.
"R. Bruce Duncan"
President, CEO and Director
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations:
Tel: 604.685.6375
TF: 866.604.3864
info(at)evolvinggold.com
Neither Canada Stock Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the Canada Stock Exchange) accepts responsibility
for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS: This news release contains forward-looking
statements, which relate to future events or future performance and reflect
management's current expectations and assumptions. Such forward-looking
statements reflect management's current beliefs and are based on assumptions
made by and information currently available to the Company. Investors are
cautioned that these forward looking statements are neither promises nor
guarantees, and are subject to risks and uncertainties that may cause future
results to differ materially from those expected. These forward-looking
statements are made as of the date hereof and, except as required under
applicable securities legislation, the Company does not assume any obligation to
update or revise them to reflect new events or circumstances. All of the
forward-looking statements made in this press release are qualified by these
cautionary statements and by those made in our filings with SEDAR in Canada
(available at www.sedar.com).
This announcement is distributed by GlobeNewswire on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Evolving Gold Corp. via GlobeNewswire
[HUG#2021085]
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Datum: 16.06.2016 - 17:00 Uhr
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