Atlin West Project Optioned to New Partner

RNS Number : 1032J

Cloudbreak Discovery PLC

19 August 2021

 

19 August 2021

Cloudbreak Discovery Plc

("Cloudbreak" or the "Company")

Atlin West Gold-Silver Project Optioned to New Partner

Cloudbreak Discovery Plc (LSE: CDL), a natural r esource project generator, is pleased to announce that it has identified an exploration partner, 1315843 BC Ltd, for its recently staked Atlin West Project (the "Project"), which targets gold and silver mineralisation in polymetallic vein systems.

The Project is located 14 kilometres west-northwest of Atlin, British Columbia northwest of Tagish Lake and covers an area of covering 3,125 hectares. Planned exploration work will focus on evaluating the potential for structurally controlled, intrusion related and polymetallic vein systems, which are known to host economic mineralisation in the area. Previous work has provided initial information on the geological potential of the project. Regional analogues include the Engineer Mine, Yellowjacket Mine and the Imperial Vein showing.

The partnership will see 1315843 BC Ltd spending up to CAD $700,000 in exploration expenditure on the property, with at least $150,000 to be spent during the first year. In addition, 1315843 BC Ltd will issue 8,000,000 common shares and make aggregate payments of $325,000 over a three year period to Cloudbreak. Upon completion of these option agreement obligations, Cloudbreak will transfer 100% interest in the property to 1315843 BC Ltd. Cloudbreak will retain a 2% net smelter royalty[1].

Kyler Hardy, CEO of Cloudbreak Discovery, commented, "We are excited to explore the promising Atlin West Project with this group. Using Cloudbreak's expertise, coupled with that of 1315843 BC Ltd.'s, we believe that modern exploration applied to this claim group could further expand on the geologic picture and understanding of the potential currently only highlighted by limited prospecting to date. The 2% NSR that Cloudbreak retains on the property as part of the agreement is demonstrative of how our business model allows us to work with great partners and share in exploration success".

About the Atlin West Project

The Atlin West Project is underlain by undivided sedimentary and volcanic rocks of the Cache Creek Complex, which have been subsequently intruded by late Cretaceous felsic volcanic and intrusive rocks.  The area is bounded by the Nahlin fault and cross-cut by east-west and northwest trending faults.

These structures are known to be associated with base and precious metals in the region, specifically the aforementioned projects. Mineralisation on the property includes the Dundee/Table Mountain showing, which is comprised of northeast trending veins with galena and chalcopyrite, assaying 2.58 ounces per tonnes of silver, 26% lead and 13.9% copper in 1967. Limited work has been reported on the property and additional exposures are as yet untested as glacial recession has progressed in the past several decades since this work was last conducted.

Additional details about the exploration targets can be inferred from known mineralisation in the regional analogues.

The Engineer Mine was in production in the 1920's and 1930's, and produced in excess of 18,000 ounces of gold and 9,000 ounces of silver. Production was at realised grades exceeding 39 grammes per tonne of gold and 20 grammes per tonne of silver. A mineral resource estimate published in 2018 stated the Engineer Mine contains an inferred resource of 41,000 tonnes grading 19.0 grammes per tonne of gold, using a five gramme per tonne cut-off grade, which equated to 25,000 ounces of gold.

At the Yellowjacket Mine, an historic estimate stated 133,000 tonnes at 5.8 grammes per tonne of gold, totalling 24,000 ounces of gold at a 1.5 gramme per tonne of gold cut-off (Price, B.J. and Dandy, L., 2009; Technical Report on the Yellowjacket Gold Project; 43-101 Report). The 2009 Yellowjacket Inferred resource estimate was done for a previous operator according to NI 43-101 standards at that time. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and neither the current owner, nor the Company is treating the historical estimate as a current mineral resource.

The Imperial Vein showing is a quartz vein that saw limited production in the early 1900's and is documented to contain materials that assayed 27.1 grammes per tonne of gold and 26.47 grammes per tonne of silver. The Imperial Vein is considered an exploration prospect at this point.

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For additional information please contact:

Cloudbreak Discovery PLC	Tel: [phone]
	Kyler Hardy, CEO	[e-mail]
	Henrik Mikkelsen, VP Corporate Development	[e-mail]
Novum Securities Financial Adviser and Broker	Tel: [phone]
	David Coffman / Lucy Bowden Colin Rowbury
Blytheweigh (Financial PR/IR-London)	Tel: [phone]	[e-mail]
	Tim Blythe
	Megan Ray
Stellium Services (Investor Relations)	Tel: [phone]	[e-mail]
www.StelliumServices.com	Andrew Wilson
	Claire Bowden

About Cloudbreak

Cloudbreak Discovery PLC is a leading natural resource project generator, working across a wide array of mineral assets that are being developed and managed by an experienced team with a proven track record. Value accretion within the projects being developed by Cloudbreak's generative model enables a multi asset approach to investing. Diversification within the mining sector and amongst resource classes is key to withstanding the cycles of natural resource investing. 

 

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[1]1315843 BC ltd, may, for the sum of $1,500,000 buy back up to 50% of the NSR

 

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