Goldmining Completes Acquisition of Yellowknife Gold Project and Big Sky Property
Highlights:
GoldMining has acquired a 100% interest in Tyhee's Yellowknife Gold Project and nearby Big Sky Property covering approximately 35 km of the Yellowknife Greenstone Belt in the Northwest Territories, Canada; Tyhee previously reported a resource estimate for the project of 1,715,000 ounces grading 1.97 g/t gold in the measured and indicated categories and 487,000 ounces grading 2.62 g/t gold in the inferred category (see Table 1). GoldMining will treat this estimate as a historic estimate and has engaged a qualified person to complete the necessary work to verify this estimate and to complete an independent technical report; Approximately 231,609 m of diamond drilling in 1,061 holes as well as 2,400 m of underground development have been completed on the project to date; Over $60 million was previously spent on exploration and acquisition costs by Tyhee; Total consideration of 4,000,000 common shares of GoldMining, which are subject to certain resale restrictions. Such shares represent less than 3% dilution to GoldMining shareholders; and The properties are in the mining-friendly jurisdiction of the Northwest Territories, home to major mining operations run by DeBeers, Rio Tinto, and Dominion Diamonds.
Vancouver, British Columbia- July 21, 2017 - GoldMining Inc. ("GoldMining" or the "Company") (TSX-V: GOLD; OTCQX: GLDLF) is pleased to announce that, further to its news releases dated May 10 and June 13, 2017, the Company has completed the acquisition of the Yellowknife Gold Project ("YGP" or the "Project") and nearby Big Sky Property ("Big Sky"), both located in the Northwest Territories, Canada.
The YGP has been the focus of substantial drilling, underground development and historic gold production. Big Sky represents an earlier stage exploration property package located south of the YGP and only 17 km north of the city of Yellowknife.
Amir Adnani, Chairman of GoldMining, commented: "We are very pleased to have acquired a gold property package of this scale and caliber with low holding costs in Northern Canada, which has witnessed a surge in gold exploration, development and production activity in recent years, led by the likes of Agnico Eagle, TMAC Resources and Goldcorp. Agnico Eagle alone has recently announced plans to invest more than $1.2 billion in Northern Canada over the next three years."
Mr. Adnani concluded: "At GoldMining, our overriding focus continues to be the consolidation of multi-million ounce gold resource assets in favorable mining jurisdictions to maximize gold leverage for our shareholders. We believe that this transaction most certainly fits that description."
The Honorable Herb Dhaliwal, a director of GoldMining, commented: "As the former Canadian Minister of Natural Resources responsible for mining, I am pleased that we are investing in the Northwest Territories. I have first-hand experience working with the Northwest Territories? government and know of the tremendous mining opportunities in the region."
Garnet Dawson, CEO of GoldMining, commented: "Yellowknife Gold Project covers over 30 km of the Yellowknife Greenstone Belt, which is believed to have historically produced over 15 million ounces of gold from the Con, Giant and Discovery mines. The Discovery Mine, located on the YGP land package, operated from 1950 to 1969 and is reported to have historically produced 1 million ounces of gold with an average grade of 28 g/t gold. An independent updated resource estimate for the YGP has been commissioned and the Company is currently reviewing the extensive geological database to evaluate follow-up exploration targets."
The acquisition was completed pursuant to the previously announced asset purchase agreement (the "Agreement") between the Company and a receiver appointed in respect of the assets and undertaking of Tyhee N.W.T. Corp., a subsidiary of Tyhee Gold Corp. ("Tyhee"), under the Bankruptcy and Insolvency Act. RMB Australia Holdings Limited ("RMB"), Tyhee N.W.T. Corp.?s largest creditor, initiated the receivership and supported the transaction.
Total consideration paid by GoldMining under the transaction consisted of 4,000,000 common shares of the Company, which are subject to customary escrow terms and will be released over an eight-month period. Please refer to the Company's news release dated May 10, 2017 for further information regarding the Agreement and the details of the completed transaction.
The Yellowknife Gold Project
YGP is comprised of 19 mining leases and 5 mineral claims with an aggregate area of approximately 18,252 ha. The Project includes five known deposits, being Nicholas, Ormsby, Bruce, Goodwin and Clan Lake, and is located 50 to 90 km north of the city of Yellowknife in the Northwest Territories. It includes a 50-person winterized camp and fuel storage and is accessible by winter road from Yellowknife or by air to a 1,000-m long gravel airstrip located on site.
Diamond drilling completed to date at the YGP includes 141 holes (27,590 m) drilled at the Nicholas Lake deposit, 707 holes (157,570 m) drilled at the Ormsby and Bruce deposits, 28 holes (5,934 m) drilled at the Goodwin Lake deposit, and 185 holes (40,515 m) drilled at the Clan Lake deposit. In 1994, a previous operator developed a decline at Nicholas Lake for 820 m of underground development. More recently, underground development was completed by Tyhee at the Ormsby and Bruce deposits including 959 m of decline, 531 m of level development and 89 m of raise.
The YGP includes the site of the historically producing Discovery Mine, which operated from 1950 to 1969. Historic production at YGP or at nearby mines are not necessarily indicative of the future mining potential of the Project.
The YGP is subject to a 2.25% net smelter return royalty on the Ormsby-Nicholas Lake properties and a 2% net smelter returns royalty on the Goodwin Lake property.
In 2012, Tyhee published a National Instrument 43-101 technical report in respect of the YGP, which included a historic resource estimate setting out resources of 1,715,000 ounces (27.115 Mt grading 1.97 g/t gold) in the measured and indicated categories and 487,000 ounces (5.774 Mt grading 2.62 g/t gold) in the inferred category (Table 1).
