FINALLY A PROJECT TO BE DEVELOPED
"Discovery Harbour Resources Corp. has entered into an exclusivity agreement to negotiate terms to acquire the Hawkins gold project, located in Ontario. The period of exclusivity grants the Company 60 days to negotiate the terms of the acquisition, which, if completed, would be a major acquisition and would be the focus of the Company's time and resources.
Hawkins Gold Project
The Hawkins Gold Project is located in the Hawkins and Walls townships, in the Sault Ste. Marie and Porcupine Mining Divisions, Ontario. The Project covers one contiguous claim block comprising approximately 524 claim units or 8,384 hectares (83.8 sq. km) covering over 40 kilometers of a major regional fault and favourable geology prospective to host gold mineralization. It represents an advanced exploration gold project, with a NI 43-101 Inferred Mineral Resource Estimate of 239,100 ounces of gold (4,957,000 tonnes at 1.50 grams per tonne gold (g/t Au), at a cut-off grade of 0.5 g/t Au). Initial due diligence indicates there is good potential to expand existing higher grade gold occurrences, grow the currently outlined gold resource and discover new zones of gold mineralization.
P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario completed a Technical Report and Resource Estimate, dated May 31, 2016, titled "Technical Report and Initial Mineral Resource Estimate on the McKinnon Gold Project, Hawkins and Walls Townships, Sault Ste. Marie and Porcupine Mining Divisions, Ontario". This Technical Report was prepared by Eugene Puritch, P.Eng., President of P&E, an independent "Qualified Person", for the purposes of NI 43-101. P&E has estimated that the Hawkins Gold Project has an Inferred Mineral Resource of 4,957,000 tonnes at 1.50 g/t Au (239,100 ounces of contained gold) at a cut-off grade of 0.5 g/t Au. The NI 43-101 Technical Report can be viewed at www.paveyarkminerals.com.
The P&E Technical Report is not current in that a recent site visit was not made and therefore, the Company is treating the estimates as historical. Additionally, since May 2016, ten additional drill holes were completed. The Company does consider the historical estimate relevant and reliable and intends to get an update of the Technical Report, including having a Qualified Person conduct a site visit, if it appears that an agreement will be reached with the vendor of the Hawkins Gold Project.
The Hawkins Gold Project is owned 100% on title by Pavey Ark Minerals Inc. ("Pavey Ark"), a private Ontario company owned 100% by Richard Sutcliffe, with a 50% beneficial ownership of the Hawkins Gold Project being held by Wabassi Resources ULC ("Wabassi"). Wabassi is 100% owned by Richard Gilliam, a Related Party to Discovery Harbour. If an agreement is reached with Pavey Ark, Multilateral Instrument 61-101 respecting related party transactions would apply, and the Company may be required to have the transaction approved by a majority of the shareholders who are unrelated to Mr. Gilliam. TSX Venture Exchange approval would also be required.
As part of the proposed transaction, should terms be agreed upon, it is contemplated that Richard Sutcliffe would be appointed as the Company's President and CEO and would assist the Company in raising a minimum of $750,000 in equity financing at an expected price of $0.05 per share or unit. Richard Sutcliffe, PhD (Geology), is a professional geologist with over 35 years of experience in geological surveys, mineral exploration and mining projects, including executive management and director positions with publicly traded mineral exploration and mining companies. He is currently a non-executive director of two public companies.
Eugene Puritch, P.Eng., an independent Qualified Person as defined by NI 43-101, has reviewed and approved the technical contents of this news release.
About Discovery Harbour Resources Corp.
Discovery Harbour is a Canadian TSX Venture Exchange listed company (TSXV: DHR) focused on sourcing, exploring and developing mineral properties, with a strategic focus on gold projects, in order to enhance shareholder value. It's current focus is the Caldera low sulphidation epithermal gold project in southern Nevada.