VANCOUVER, British Columbia, Nov. 29, 2017 (GLOBE NEWSWIRE) -- Cameo Resources Corp. (TSX-V:CRU) (OTC:SIDNF) (the “Company” or “Cameo Resources”) is pleased to announce that it has entered into an agreement to acquire the Silver King North Project, a district-scale exploration property contiguous to New Nadina Explorations Ltd.’s Silver Queen Project.
“The Silver King North Project is a fantastic opportunity for Cameo Resources and its shareholders. Unlike others, we will be an actual neighbour of New Nadina Explorations and their Silver Queen Project. Moreover, past geological mapping and geophysical work on the property has shown it to host significant target areas of immediate interest. By securing a district-scale land position, Cameo is well positioned to benefit from upcoming exploration on our new project as well as ongoing market interest in this historically-rich and prospective mineral district,” stated Akash Patel, President of the Company.
About the Silver King North Project
The Silver King North Project is located south of Houston, BC and is contiguous with the Silver Queen Project owned by New Nadina Explorations Ltd. It consists of two blocks containing 14 mineral licenses covering more than 16,273 ha (40,194 acres). In addition to a property border with New Nadina, the Silver King North Project also shares contiguous claims with publicly traded Tasca Resources Ltd. and most recently Resolve Ventures Inc.
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Historic exploration on the property and new compilation work has identified numerous target areas of immediate exploration interest to Cameo Resources across the geographic breadth of the project.
In the western portion of the property, past geological mapping has identified the rare presence of Equity Mine Dacite. Equity Mine Dacite occurs infrequently in the region and is the ore-hosting unit at the Equity Silver Mine. The past-producing Equity Silver Mine delivered cumulative production of 33.8 million tonnes with an average grade of 64.9 g/t silver, 0.4% copper and 0.46 g/t gold (see MIN FILE No 093L 001). Equity Mine Dacite consists of flow banded to massive felsic flows, pyroclastic breccias, lapill tuff and dust tuff. The Silver King Project is accessible via a well-established and regularly maintained logging road.
In the central portion of the property, which is located due north of New Nadina’s recent Silver Queen Project discovery, past exploration has delineated a concentrated area of exploration targets. Following a comprehensive magnetic survey conducted over a large portion of what now comprises the Silver King North Project, a Hunter Dickinson company (“HDI”) identified a 12km long north-south and 6km east-west oval shaped magnetic feature believed to reflect the potential location of a caldera (“the “Caldera Prospect”) (see BC Geological Survey Assessment Report 34048). HDI noted that two internal magnetic highs within the Caldera Prospect as being suggestive of resurgent intrusive centers warranting follow-up. The majority of the southern and northern mag intrusive target areas are held within the Silver King North Project:
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The presence of a potential caldera structure within the Silver King North Project is particularly relevant to note as recent exploration and knowledge developments in the area by New Nadina Explorations Ltd. have now determined the critically of an interpreted caldera as having a role in the recent discovery on their adjacent project. Of note, “[r]ecognoscente geological work has shown that the Silver Queen vein system and the recently drilled target are located within a caldera, which formed during repetitive explosive eruptions producing pyroclastic volcanic (tuffs)” (see New Nadina Explorations Ltd. news release dated October 27, 2017).
Subsequent to a due diligence review of regional technical materials by the Company, Cameo Resources has been able to also verify the presence of a magnetic structure that has remarkable shape similarity to one situe at the past producing Equity Silver Mine (see above) within the southern zone of the Caldera Prospect. Recent geophysical work at the Equity Silver Mine to the east of the Silver King North Project has identified that mineralization at that mine formed along a structural or stratigraphic break and was introduced by a monzonitic intrusion in close proximity to that break (see Alldrick, D. J. (2007): Geology of the Equity Silver Mine area, central British Columbia (NTS 093L / 01W); BC Ministry of Energy, Mines and Petroleum Resources, Open File 2007-9.)
The presence of a similarly shaped intrusion to the Equity Silver Mine within a prospective caldera (the “Caldera Target”) is viewed by the Company as area for immediate exploration follow-up; including as a prospect for a potential drill program in early 2018.
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The eastern portion of the Silver King North Project continues to share a contiguous property border with New Nadina Explorations Ltd. and trends towards the Equity Silver Mine. It offers a substantial area of tenure which has seen little modern-day exploration. A geophysical survey by the Company will assist in determining prospective targets within this specific portion of the project.
Terms of the Silver King North Project Transaction
The Company has agreed to acquire the Silver King North Project from arm’s-length vendors in exchange for four million common shares, cash payments totalling $200,000 and the granting of a 2% gross royalty. No finders fees are payable. The transaction is subject to the approval of the TSX Venture Exchange and all shares issued under the transaction are subject to a four-month hold period.
Technical disclosure in this news release has been reviewed and approved by Lorne Warner as defined by National Instrument 43-101.
On behalf of the Board of Directors,
CAMEO RESOURCES CORP.
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