July 9, 2015
Troymet Options Redhill Project from Homegold
July 9, 2015 - Troymet Exploration Corp. (TSXV:TYE) (“Troymet” or the Company”) is pleased to report that it has entered into an arms-length option agreement with a private company, Homegold Resources Ltd. (“Homegold”), on the Redhill copper-gold-zinc-silver volcanogenic massive sulphide (“VMS”) project in British Columbia, whereby Troymet can earn a 100% interest in the project. The transaction is subject to regulatory filings and acceptance. The Redhill property, which covers 3,689.75 hectares, is located approximately eighty (80) kilometres west of Kamloops and ten (10) kilometres south of Ashcroft, British Columbia. Access to the property is via the Trans-Canada Highway Number 1 that runs across the central part of the property in a north-south direction. A series of dirt roads and trails give access to various sectors of the property.Troymet believes there are unrecognized and untested copper-zinc-gold targets that can be quickly and cost effectively identified and drill tested in the “Redhill” and “Feedlot” zones, as well as in extensions to the south. In its evaluation of the property, Troymet identified potential settings for mineralization in the stratigraphic hanging-wall west of the Redhill zone. Soil geochemistry shows base metal and gold anomalies offset from the Redhill zone that have not been tested and there are also some strong EM conductors in the Feedlot zone that have not been drilled. The mineralization in the Redhill zone is a very prominent gossan developed on a VMS exhalative, stockwork feeder zone. Mineralization in the Feedlot zone appears to be a more akin to exhalative iron formation. Past drilling of electromagnetic conductors in both zones returned encouraging intersections including:- 2.54% copper, 2.78% zinc, 77.0 g/t silver and 0.37% gold over 7.75 metres; 2.08% copper, 7.5 g/t silver over 1.35 metres; 0.56% copper, 0.79g/t silver over 2.95 metres; and 0.59% copper, 1.6% zinc, 1.91g/t silver and 0.39g/t gold over 2.58 metres (British Columbia Assessment Report Indexing System Report #28371).
The volcanic sequence of the Redhill sector is exposed in a five (5) kilometres-wide, NNW-striking, thrust slice over a distance of at least twenty (20) kilometres. The geology is interpreted to be chemically analogous and age equivalent to the Permo-Triassic age Kutcho Assemblage that hosts the Kutcho Creek Cu-Pb-Zn-Ag VMS deposit in northern British Columbia. The potentially analogous Kutcho deposit currently owned by Capstone Mining Corp. reportedly hosts measured and indicated resources (using a 1.5% copper cut-off) of 11.2 million tonnes grading 2.19% copper, 3.28% zinc, 37g/t silver and 0.39 g/t gold (Capstone Mining Corp. website). Management of Troymet is not aware of a NI 43-101 resource on the Redhill project and analogous deposits such as the Kutcho deposit should not be considered an indication that a resource is contained or will be discovered on the Redhill project.
Under the terms of the option, Troymet may acquire a 100% interest in the Redhill project by making option payments as follows: $5,000 on signing; $5,000 on the first anniversary of the agreement; $5,000 on the second anniversary of the agreement; $10,000 on the third anniversary of the agreement; $40,000 on each of the fourth to and including the ninth anniversaries of the agreement; and $235,000 on the tenth anniversary of the agreement. As well, Troymet must spend $500,000 on exploration as follows: $20,000 on or before the first anniversary of the agreement; $50,000 on or before the second anniversary of the agreement; $150,000 on or before the third anniversary of the agreement; $30,000 on or before each of the fourth to and including the ninth anniversaries of the agreement; and $100,000 on or before the tenth anniversary of the agreement. If Troymet exercises the option, Homegold will retain a 2% NSR, half ( 1%) of which can be purchased by Troymet for $1 million at any time. Homegold will receive a bonus payment of $500,000, in cash or shares at the election of Homegold, in the event of commercial production or sale of 100% of the property. Expenditures can be accelerated at Troymet’s election and excess expenditures in any year will be credited towards future years.
Kieran Downes, President and CEO of Troymet, comments: “The Redhill project is a unique and highly prospective project with easy access and a great database “to mine”. With a modest expenditure, we believe we can identify high quality drill targets and rapidly advance the project.”
Qualified Person
Kieran Downes, P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.
About Troymet Exploration Corp.
Troymet Exploration Corp. is a junior exploration company with a solid treasury and with projects in British Columbia (Golden Eagle), Manitoba (McClarty Lake) and Utah (Wildcat). Troymet operates the Wildcat and Golden Eagle projects. Hudbay Minerals Inc. is the operator of the McClarty Lake joint venture and must contribute $1,151,052 in joint venture expenditures before Troymet is required to fund its participating interest. Troymet retains a 2% net smelter returns royalty (NSR) on the Key property, British Columbia, which was sold to New Gold Inc. in 2013. Troymet is continuing to evaluate mineral properties for acquisition.
TROYMET EXPLORATION CORP.
Kieran Downes, Ph.D., P.Geo.
President, CEO & Director
For further information, contact: Anthony Zelen
Investor Relations
Tel: 888-456-4952
Cel: 778-388-5258
Email: anthony@senergyir.com
Website: www.troymet.com
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 news release.
This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. In particular, this news release contains forward-looking information in respect of: the Redhill Project, including the potential exercise and earning of the Option and possible exploration and development expenditures on the Redhill Project; the exploration potential and analogous deposit potential of the Redhill Project; future data analysis, sampling plans and exploration plans on the Redhill Project; the timing for exploration and drilling on the Redhill Project; exploration targets and the potential of such exploration targets; and the ability and the timeframe within which the Redhill Project can be advanced. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. This forward-looking information reflects Troymet’s current beliefs and is based on information currently available to Troymet and on assumptions Troymet believes are reasonable. These assumptions include, but are not limited to: the current share price of Troymet’s common shares and the ability to raise future equity financing, if needed, at prices acceptable to Troymet; Troymet’s current and initial understanding and analysis of the Redhill Project; the ability of Troymet to discover viable exploration targets and the results of exploration on the Redhill Project; the cost of exploration, including sampling and drilling, on the Redhill Project; Troymet’s general and administrative costs remaining constant; and the market acceptance of Troymet’s business strategy. Forward-looking information is subject to known and unknown risks, uncertainties and other factors which may cause the actual results, level of activity, performance or achievements of Troymet to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of Troymet and its projects, and in particular, the Redhill Project; general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities, junior market securities and mining exploration company securities; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting Troymet; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of other assumptions used to develop such forward-looking information and a description of other risk factors that may cause actual results to differ materially from forward-looking information can be found in Troymet’s disclosure documents on the SEDAR website at www.sedar.com. Troymet does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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