A further update from management. Shows a significant discussion of the potential of the Nevada project and also the financial problems that must be overcome to provide the sums to do the drilling that is necessary.
It won't happen overnight, but management realizes the problems.
Hope remains our only option
""Discovery Harbour") is pleased to announce that it has submitted an Exploration Plan of Operations ("the Plan") to the United States Forest Service ("USFS") in furtherance of the Company's planned drill program at the Caldera gold project, Nevada. The Plan includes up to 10 drill targets in five separate mineralized areas.
Mark Fields, the Company's President and CEO, states, "The work we have completed to date represents a major step towards drill testing the potential of the Caldera project. We have selected 10 targets from no less than 33 targets within five of the eight distinct gold mineralized areas at Caldera. Figure 1 attached to this news release outlines the locations of the 10 drill sites, each having the potential to deliver a high grade intersect. I would like to thank our consultants who have helped prioritize these targets."
Mark Fields continues, "Our plan is to drill 100 to 300 metres deeper than any previous drilling on the Caldera project. Figure 2 to this news release is a conceptual construction of historical drill results and interpretation of where high grade gold mineralization is believed to exist, illustrating the need to drill deeper. We believe the high-grade gold occurrences historically drilled at or near surface were deposited by a deeper low sulphidation epithermal gold system. All of the data we have analyzed support our theory that the gold system should be intact."
The Company commenced the drill permitting process late last year. Since then, it has selected the specific drill sites and engaged a Nevada contractor to conduct the baseline studies required for the environmental impact analyses of the Plan. The contractor is prepared to initiate field work as soon as ground and weather conditions allow.
Once complete, the USFS will review the Plan for conformance to regulatory requirements. Future drilling is subject to USFS and other regulatory approvals as well as financing.
Drill Targets
Each of the five mineralized areas (Adara, Calista, Darius, Faustus and Gemina) selected for drill site permitting are described in detail in our January 9, February 10 and March 4, 2020 news releases. Figure 1 provides the location of the 10 drill sites submitted for permitting and Figures 2 and 3 provide a conceptual cross section and selected historical drill hole highlights respectively.
The 100% Discovery Harbour-optioned Caldera property was generated by Don Merrick and John Zimmerman of Genesis Gold Corporation, a private Utah company specializing in gold exploration in the Western United States (www.genesisgoldcorp.com), the foundation of which are the claims first staked by Zsolt Rosta.
Mark Fields, P.Geo., is the Qualified Person for Discovery Harbour as defined in NI 43-101 and has reviewed and approved the technical contents of this news release.
Financing Update
Pursuant to the Company's news release dated March 12, 2020, the Company has made the decision to terminate the remainder of its non-brokered tranche-structured private placement (the "Offering") of an aggregate of $1,000,000 through the issuance of 10,000,000 units priced at $0.10 per unit (each a "Unit"). The Company closed the initial and only tranche of the Offering in the amount of $187,500, consisting of 1,875,000 Units, pursuant to a news release dated February 25, 2020. Each issued Unit consists of one common share and one half of one share purchase warrant, with each whole warrant exercisable into one additional common share at a price of $0.15 for a period of two years, subject to an acceleration clause. It is anticipated that the proceeds of the financing will allow the Company to continue with its permitting process until such time as the financial markets stabilize or recover from the conditions caused in part from COVID-19."
