Triumph Gold Corp. announces that Rio Tinto Exploration Canada Inc. (RTEC) has entered an option agreement to obtain a 100% interest in Triumph Gold’s Andalusite Peak property located in northwest British Columbia. Under the terms of the option agreement, RTEC will pay Triumph Gold $3,000,000 over a five-year option period and reserve for Triumph Gold a one percent (1%) net smelter returns royalty, which is capped at $50 million. The sum of $25,000 is payable to the Company within 45 days of the agreement date with a further $50,000 payable on or before the first anniversary date of the agreement.
The Andalusite Peak property (31.67 km2) was staked by Triumph Gold in January 2017 to cover an alteration “blow out” (a portion of an alteration zone with increased width and alteration intensity) near the center of a 27-kilometre-long corridor of intermediate to advanced argillic alteration that was identified and mapped in 2016 by B.C. Geological Survey geologist Bram van Straaten. Work by Triumph Gold geologists in 2017 and 2018 verified the alteration zone and identified two trends of high grade copper (Cu), silver (Ag) and gold (Au) mineralization on ridge-tops approximately 1.5 kilometres apart: the Gentleman-Julep Trend is delineated over 550 metres with seven grab samples that grade >0.5% Cu and up to 3.3% Cu, 22.1 grams/tonne (g/t) Ag, and 2.8 g/t Au; the Tennessee Trend is delineated over 1.5 kilometres with fifteen grab samples that grade >0.5% Cu and up to 67% Cu, 500 g/t Ag and 2.8 g/t Au. For details of geochemical sampling results see PR#19-01 dated January 9, 2019 and PR#18-03 dated January 22, 2018.
Paul Reynolds, President and CEO of Triumph Gold, commented: “We are very pleased to have Rio Tinto’s considerable technical expertise and proprietary exploration techniques directed towards advancing the Andalusite Peak Property, while allowing Triumph Gold to focus financial and technical resources on our flagship property, the 100% owned, road accessible, Freegold Mountain Property, in the Yukon Territory. The agreement benefits Triumph Gold in the near term with cash payments and provides exposure to the upside of a potential future mine development through a 1% net smelter returns royalty.”