April 20, 2023 TSXV: ZON
Zonte Metals Inc (TSXV: ZON) (“Zonte” or the “Company”) is pleased to announce the discovery of several new gravity anomalies from its recently completed survey; and has completed its previously announced non-brokered private placement.
The recently completed gravity survey covered a number of areas with specific objectives throughout the program. Previously, in 2019 a gravity survey was carried out between the K6 and K8 targets, which identified several open-ended gravity anomalies. To validate these anomalies, a portion of the 2023 grid was designed to cover the areas not previously covered in 2019. The combined data was processed to obtain the residual data, which resulted in the identification of:
1. A residual gravity anomaly located south of K6 target,
2. A residual gravity anomaly located west of the K7 target,
3. A residual gravity anomaly located at the K8 target.
Terry Christopher, President and CEO comments, “The initial gravity grid has helped defined several new anomalies, sitting within the Cross Hills Structural Zone, between the known K6 and K8 targets. Each of these new targets sit in portions of magnetic disturbances which could represent magnetite destruction, often associated with hydrothermal systems, and/or deposition of sulphides. This is particularly noted in the new K6 South anomaly, making it a high-priority target. To date, these new targets have been covered by magnetics, gravity, structural analysis, mapping and rock and soil geochem. The next step is to infill and expand upon the soil geochem coverage to assist in defining the initial targets for drilling. The remaining exploration will be carried out over the next few months, and it’s anticipated this area will become a priority for the Company.”
A new residual gravity anomaly was discovered several hundred metres south of the drill ready K6 target. The proximity suggests the two anomalies may be related, however, until further exploration and drilling can confirm this relationship, it will be called K6 South. The K6 South gravity anomaly sits in a zoned magnetic profile, which shows a suppressed centre surrounded by a partially circular magnetic high. These patterns may suggest magnetic destruction and/or sulfide precipitation making it a high-priority target. This target also sits within the structural corridor defining the Cross Hills Fault system. Soil sampling through this area is spotty, however, elevated copper is noted spatially associated with this new gravity target. Additional soil sampling is required.
The new target just west of the K7 target sits adjacent and to the west of the K7 gravity anomaly. It sits in a cross-cutting structural zone, perpendicular to the Cross Hills Fault system. The newly identified target and original K7 target appear to be related and collectively measure 1500m in strike length and up to 600m at its widest portion. These anomalies are associated with strong Cu-in-soils, with additional soil sampling required to cover the anomaly. The original K7 gravity anomaly was drill tested on its south-east side in 2020. The two drill holes intersected anomalous intervals of Cu, RRE’s and Zr. Since that drill program, Zonte has completed additional structural and geochemical surveys, and with the new gravity data, this target is much larger and sitting in an attractive geological setting.
The anomaly defined at the K8 target is a large, measuring 1km in length, and open to the south. The strongest part of the gravity anomaly sits on the north end of the K8 magnetic anomaly, where there is a clear change and disturbance in the magnetics. Previous exploration has discovered copper-in-rocks throughout the target area, with the copper mineralization haloed by a zone of pyrite. The Cu-in-soils is elevated throughout the target area where covered. Additional soil sampling is required to narrow down the area of interest.
Additional processing of the 2023 gravity is continuing and will be released once received and compiled. A map showing the targets can be found on the Cross Hills Copper project webpage at; https://www.zontemetals.com/projects/cross-hills-copper-property. Inserted below.
The Company is also announcing that it has completed its previously announced non-brokered private placement and, subject to TSX Venture Exchange (the “Exchange”) approval, has issued 1,022,000common share units at a price of $0.10 (the “Offering”) for total proceeds of $102,200. Each Unit consists of one common share and one share purchase warrant, expiring April 5, 2026, entitling the holder to acquire one additional common share at a price of $0.18. Following completion of the Offering, the Company has 69,579,961 shares issued and outstanding.
In connection with securities sold pursuant to the Offering, the Company paid $6,132 in cash and issued 61,320 Finders’ Warrants to one Eligible Finder who was at arm’s length to the Company. Each Finders’ Warrant is exercisable until April 5, 2028, to purchase one common share of the Company at a price of $0.20 per share. Finders’ Fees paid in connection with the Offering were subject to and in accordance with Exchange and regulatory policies.
All securities issued pursuant to the Offering will be subject to a four-month and one day statutory hold period.
The Company intends to use the net proceeds of the Offering for working capital purposes and exploration at the Cross Hills Iron Oxide Copper Gold Property, in Newfoundland and Labrador.
Qualified Person
Dean Fraser, P.Geo. is the qualified person as defined by NI 43-101 and has reviewed and approved the contents and technical disclosures in this press release.
Image illustrates the K6-K8 structural corridor with gravity contours superimposed on the magnetic profile through the target area. For additional information including rock geochem, please see the Cross Hills webpage.
About Zonte
Zonte Metals Inc. is a junior explorer focused on gold and copper. The Company owns 100% of the MJ project, in the Tintina Gold Belt, located in the Yukon Territory, the Wings Point project in the new Central Newfoundland Gold Belt, and the Cross Hills IOCG project located in Newfoundland and Labrador. In Colombia; the company has a 25% carried interest in Project X where historic drilling intersected significant gold mineralization and the Company and partner have an application over open areas sitting on top of the open pit outline of the Gramalote Deposit in Colombia, which is held by AngloGold Ashanti (NYSE:AU) and B2Gold (TSX:BTO, NYSE:BTG). The title issuance is being contested by the state governing the application and the Company has started legal action to protect its rights.
Forward-Looking Information
This news release contains forward-looking statements which include statements regarding the Corporation’s future plans, as well as statements regarding financial and business prospects and the Corporation’s future plans, objectives or economic performance and financial outlooks. The Corporation believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements. In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof, and unless otherwise required by applicable securities laws, the Corporation does not intend nor does it undertake any obligation to update or revise any forward-looking statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
For further information contact:
Terry Christopher
CEO and President
902-405-3520
info@zontemetals.com
www.zontemetals.com