February 5, 2021 – TheNewswire – Vancouver, BC – PACIFIC ARC RESOURCES LTD. (the “Company” or “Pacific Arc”) (TSXV:PAV.H) is pleased to provide the following update to shareholders. The Company announced on April 6, 2020 that it had entered into a Letter of Intent (LOI) with 1232123 B.C. Ltd. ("B.C. Ltd.") whereby Pacific Arc would acquire all of the issued and outstanding securities of B.C. Ltd. by way of a share exchange, amalgamation, or such other form of business combination as the parties may determine (the "Transaction"). As part of that Transaction, B.C. Ltd. – now named Faina Goldfields Inc. ("Faina") – would acquire certain mining assets in Brazil, details of which were provided in the April 6th announcement.

 

The Company has been informed by Faina that the documents relating to the acquisition of the Brazilian assets have been executed and released from escrow and the Commercial Registry in Brazil has been updated to reflect the change in ownership of the mining assets to Faina. The Company and Faina expect to sign a definitive agreement in the next few weeks for the Proposed Reverse Takeover (RTO). Pacific Arc will provide further details in respect of the Transaction in due course by way of press release, including with respect to the concurrent financing.

 

About Faina

Faina’s assets principally comprise a large tenement package, located in the central Brazilian State of Goias, covering 215 km2, which encompass the Cascavel, Sertão and Tinteiro Projects, as well as numerous other advanced gold exploration targets including Digo Digo, Española, Antena-Xupé and a highly prospective conglomerate target. In 2021, Faina intends to drill up to 15,000 metres on 3 key targets. Work is being carried out by Chief Geologist Paulo Aguirre, who recently joined Faina from AngloGold Ashanti.

 

Faina’s property package also comprises a formerly operational gold mine called Cascavel. Cascavel was constructed in 2016 and has an existing fully dewatered underground mine and idled mill that includes an In-Line Pressure Jig, Gekko spinners and a Nelson concentrator. The crushing circuit was provided by Simplex. The tailings were dewatered and dry stacked. More than $20 million has been spent on exploration and development at Cascavel.

 

Due to the record local gold price in Brazil of over BRL$9,000 per ounce, management is exploring options to bulk sample the Cascavel ores. On the 3rd of September 2018, previous operators of Cascavel – Orinoco Gold Limited reported on the ASX in Australia "High-Grade panel samples at Cascavel’s Mestre Level 6 grading up to 1,443 g/t Au".  At the time, some 28 samples were taken along an approximate 40 metre length of workings in Level 6 with an average grade of 323.69 g/t. Bulk sampling will focus on the Mestre Zone that appears to offer the best grades in the underground mine.

 

The Sertão Gold Project is located 28 km by road from Cascavel. From 2003 to 2007, Sertão produced 256,000 ounces of gold while under the ownership of Troy Resources at an average mill grade of 29 g/t (open pit). Western Mining Corporation’s maiden discovery hole at Sertão in the late 1980s was GVD002 which intersected 6.1m @ 523 g/t from surface.  Although this hole has since been mined, we believe the Sertão target is highly prospective, and has significant down dip potential. Approximately 1.2 kms due West from the Stage 5 Sertão open pit, SRT001 intersected 2.0m @ 18.7 g/t from a vertical depth of 541 metres.

 

In Q1 2016, ASX-listed Orinoco Gold Limited ("Orinoco") completed a 3,200m drilling programme which was used for a 2017 JORC-compliant technical report which included a Mineral Resource estimate. The Mineral Resource estimate is based on two (2) domains – Oxide and Sulphide as highlighted in Table 1.

 

Table 1: Sertão Mineral Resource estimate as at May 30, 2017

 

Domain

 

Category

 

Cut-off

(g/t Au)

 

Tonnage

(tonnes)

 

Grade

(g/t Au)

Contained Gold

(ounces)

Oxide

Measured

1.0

9,490

3.65

1,114

Indicated

1.0

24,030

6.96

5,377

Inferred

1.0

38,979

4.94

6,191

Sulphide

Measured

3.0

–

–

–

Indicated

3.0

57,824

8.03

14,928

Inferred

3.0

92,788

7.26

21,658

Total

Measured

 

9,490

3.65

1,114

Indicated

 

81,854

7.72

20,305

Inferred

 

131,767

6.57

27,849

Total

 

223,111

6.87

49,268

A qualified person has not performed sufficient work to classify the historical JORC estimate as NI 43-101 compliant mineral resources or mineral reserves, and the Company is not representing any historical estimate as mineral resources or mineral reserves.  

 

The Mining Assets are located south of established greenstone belts, largely occupied by mineral tenements surrounding AngloGold Ashanti’s Serra Grande Mine and Equinox Gold’s Pilar Mine. Collectively, Goiás’ northern greenstone belts have delivered total past gold production of 5.7 million ounces of gold.  However, the host greenstone belt remains largely unexplored.  

 

Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Mining Assets.  

  • – Tinteiro – a polymetallic prospect that also appears to be mineralized in the middle of Cascavel gold system. Highlights of the 52-hole drill program include a drill intersection of 17.6m @ 1,292 g/t silver on the 8th of May 2013 by previous operators Orinoco Gold Limited in a report to the ASX entitled "Thick High-Grade Silver Discovered at Cascavel". The then company also reported rock chip samples grading up to 4,200 g/t of silver and 7 g/t gold in June 2014 and reported cobalt rock chip samples up to 1.75% in June 2018 in a sampling program consisting of 54 samples. At the time of the May 2013 silver discovery, the assay was initially only tested for gold.  The silver target has not been worked on to any extent since 2013.  

    – The Antena-Xupé cluster of 5 dormant open pits. In March 2018, a drill program consisting of 12 holes included a highlight of 21.7m @ 4.49 g/t at Xupé.

An existing 25 km private haul road runs between Cascavel, Antena-Xupé and Sertão. The processing plant complex includes a fully licensed state-of-the-art modular laboratory with a sample preparation section designed and commissioned by SGS Labs Brazil. The laboratory is fully licenced by the CRQ (Conselho Regional de Química) and by the Brazilian military for the storage and usage of cyanide and acids. The laboratory is complemented with the latest computerized analysing technology and will be central to future exploration drilling programmes and allow fast result turnaround. This is especially important given the backup the assay industry is experiencing, at the moment, due to strong demand from exploration companies globally.  

 

Completion of the Transaction is subject to a number of conditions, including but not limited to, TSX-V acceptance and if applicable, disinterested shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

 

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Pacific Arc should be considered highly speculative.

 

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Transaction and neither approved nor disapproved the contents of this news release.

 

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.

 

ON BEHALF OF THE BOARD OF DIRECTORS

PACIFIC ARC RESOURCES LTD.

 

s/ “John MacPhail”

John MacPhail, President, CEO and Director

  

For further information, please contact:

 

John MacPhail, President, CEO & Director
Phone: (778) 688-7411

 

Qualified Person

Nick Revell, P.Geo, a qualified person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects and a consultant to Faina through his company Spur Geological Services, has reviewed and approved the scientific and technical disclosure in this press release. Mr. Revell has visited the properties, now owned by Faina as part of his consulting work.

  

This news release does not constitute an offer to sell and is not a solicitation of an offer to buy any securities in the United States. The securities of the Company and Faina 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 or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws unless pursuant to an exemption from such registration.

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements. These risks and uncertainties include but are not limited to: liabilities inherent in mine development and production; geological risks, risks associated with the effects of the COVID-19 virus, the financial markets generally, the results of the due diligence investigations to be conducted by the Company, the ability of the Company to complete the Transaction or the Offering or obtain requisite TSX-V acceptance and, if applicable, shareholder approvals. There can be no assurance that forward-looking statement will prove to be accurate, and actual results and future events could differ materially from those anticipate in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

  

Copyright (c) 2021 TheNewswire – All rights reserved.