- Leviathan receives the net proceeds from the
upsized $12.9 million subscription receipt
financing
- drill permits in place to allow for immediate
exploration
- trading to commence February 10, 2021 with symbol
LVX on the TSX Venture Exchange
VANCOUVER, BC, Feb. 10, 2021 /CNW/ - Fosterville South
Exploration Ltd. ("Fosterville South") (TSXV: FSX)
(OTC: FSXLF), (FWB: 4TU) and Leviathan Gold Ltd.
("Leviathan" or the "Company") ("LVX") are pleased to
announce that further to the press release issued on December
9, 2020 in respect of the upsized subscription receipt financing
of $12.9 million (the "Offering"), the escrow
release conditions under the Offering have been satisfied. The
total net proceeds to Leviathan under the Offering, after deducting
the commission and expenses of the agents, was $12.1 million,
of which $387,000 was released on the closing of the
Offering and the remaining net proceeds of the Offering, in the
amount of $11.68 million, have now been released to
Leviathan.
Leviathan and Fosterville South are also pleased to announce
that Leviathan has completed the acquisition of the Avoca and Timor
projects from a wholly-owned subsidiary of Fosterville South.
As previously announced on February 1, 2020, Leviathan has
received approval from the TSX Venture Exchange ("TSXV") to
list its common shares on the TSXV under the symbol "LVX", with
trading to commence on Wednesday, February
10, 2021.
Leviathan Gold Chief Executive Officer, Luke Norman, states, "As I have stated
previously, we are all excited with what we have managed to put
together; asset, capital and teamwise. We look forward to updating
our shareholders in the coming days of our interpretations of the
historical workings and their host environment, and how we believe
they are merely symptomatic of a very large mineral system that
could host multiple deposits analogous to some of the famed
orebodies in the region."
Avoca Project
The Avoca project is centred on mesothermal quartz-vein-hosted
gold and related placer-style "deep lead" gold mineralization.
There is a considerable local history of mining both kinds of
deposit. The term "deep lead" refers to buried auriferous river bed
deposits. The Avoca goldfield produced approximately 750,000 ounces
of gold largely from alluvial gold deposits.
The Avoca project is located approximately 183 kilometres west
northwest of the Victorian state capital Melbourne, with good
road access. Geologically, the Avoca project occurs within the
Stawell zone, west of the Bendigo and Melbourne zones of
the Lachlan Fold Belt.
Having previously been mined with a significant amount of gold
production from both alluvial and hardrock high-grade sources,
Fosterville South considers the Avoca project is highly prospective
for hardrock structurally controlled gold deposits. A number of
major fault zones have been recognized with strike lengths of ten
or more kilometres. Gold mineralization within the Stawell zone is
generally base metal sulphide related, which Fosterville South sees
as an opportunity for disseminated or fine-grained gold
mineralization.
The significant hard rock historic mines within the Avoca
licence include the high-grade:
- Pyrenees reefs -- 16,199 tons mined for 16,602 ounces of gold
to 130 metres at an average recovered grade of 32 g/t gold, worked
from 1860 to 1912;
- Excelsior reef -- 13,200 tons mined for 9,260 ounces of gold to
100 metres at an average recovered grade of 22 g/t gold, worked
from 1909 to 1915;
- Vale's reefs -- 1,444 tons mined for 1,388 ounces of gold to 52
metres at an average recovered grade of 29.4 g/t gold, worked from
1865 to 1883; and
- Monte Christo reefs -- 2,795 tons mined for 937 ounces of
gold to 30 metres at an average recovered grade of 10.3 g/t gold,
worked from 1872 to 1877.
The production noted above was obtained from State of Victoria
Mining Surveyors and Registrar's quarterly reports from 1860 to
1891 and annual reports issued thereafter. All the production from
these reefs occurred within the Avoca licence.
Defined mineralization shoots are present at both the Pyrenees
reef and Excelsior reef, as shown from the underground mine plans
held for both deposits.
In terms of alluvial gold deposit potential, the Avoca subbasin,
located within the Avoca project, is also projected to contain one
of the largest unmined deep lead alluvial gold deposits
within Victoria.
Timor project
The Timor project occurs immediately east of the Avoca project
and occurs within the Bendigo zone of the Lachlan fold belt.
The Timor project area contains numerous hardrock and alluvial
gold deposits evidenced by significant historical workings.
Historical alluvial production within the Timor project area
is in the region of 640,000 ounces of gold.
Around 20 hardrock workings can be considered to have been
significant producers. These include the Leviathan group of mines,
with recorded gold production of 56,474 ounces of gold from 189,085
tonnes, equating to a recovered grade of approximately 9.14 g/t
gold. The Leviathan structural corridor hosts several parallel
quartz veins with most of the production coming from one mine
active in the early 1900s. Significant potential occurs within the
various other veins and faults within the corridor to the
north.
In addition, Shaw's reef produced 16,881 tons mined for 12,623
ounces of gold to 130 metres at an average recovered grade of 22.9
g/t gold, worked from 1883 to 1891. Along strike of this fault zone
arsenopyrite and stibnite mineralization is recorded in association
with the gold mineralization indicating possible epizonal
Fosterville-style gold mineralization.
Both these former mines lie on separate large regional
north-south structures known to occur for tens of kilometres with a
number of hardrock workings over their length. Neither of these two
major structures have had significant drilling within the tenement.
Only one diamond drill hole and one traverse of RC drilling has
been carried out across the Leviathan structure. No drilling has
occurred on the Shaw's reef fault zone and numerous other
prospective areas within the tenement. These two mineralized
structures are a primary focus for exploration within the
project.
Qualified Person
The technical content of this news release has been reviewed,
verified and approved by Keith Whitehouse, AusIMM (CP), of
Leviathan Gold (Australia) Pty.
Ltd., a qualified person as defined by NI 43-101.
On behalf of the Leviathan Gold,
Luke Norman, Chief Executive
Officer and Director
On behalf of Fosterville South Exploration,
Bryan Slusarchuk, Chief Executive
Officer and Director
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. No securities regulatory authority has
either approval or disapproved of the contents of this press
release.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the
United States. The securities have
not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act") or any state securities laws and may not be offered or
sold within the United States unless registered under the
U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
Forward-Looking Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release, including with respect to the timing of
the listing of the Leviathan common shares on the TSXV and
the geological prospects of Leviathan's and Fosterville South's
mineral projects. These statements reflect their respective
management's current estimates, beliefs, intentions and
expectations. They are not guarantees of future performance. Each
of Fosterville and Leviathan
cautions that all forward looking statements are inherently
uncertain and that actual performance may be affected by many
material factors, many of which are beyond their respective
control. Accordingly, actual and future events, conditions and
results may differ materially from the estimates, beliefs,
intentions and expectations expressed or implied in the
forward-looking information. Except as required under applicable
securities legislation, neither Fosterville nor Leviathan undertakes to
publicly update or revise forward-looking information.
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SOURCE Leviathan Gold Ltd