Delta, British Columbia--(Newsfile Corp. - September 24, 2019) - Desert Gold Ventures Inc. (TSXV: DAU) (FSE: QXR2) (OTC Pink: DAUGF) ("Desert Gold" or "the Company") is pleased to announce that the Company has secured the right to acquire a 95% interest in the Linguekoto Concession, which is contiguous to the Company's flagship Senegal Mali Shear Zone gold project (the "SMSZ Project") in Western Mali.
The Linguekoto property ("Linguekoto") acquisition is another step in Desert's Gold's regional strategic consolidation plan (see Figure 1), which is to build one of the largest, if not the largest, non-producer, contiguous exploration land package over the prolific Senegal Mali Shear Zone.
ABOUT THE LINGUEKOTO PERMIT
The Linguekoto concession is 27km2 in size and is contiguous to the southern border of the Company's SMSZ Project (see Figure 1). A brief summary of the concession follows:
- Linguekoto encompasses an additional 3.6 km portion of the Senegal Mali Shear Zone ("SMSZ") and spans 4km east and 3.2km west of the SMSZ.
- Upon completion of this acquisition, Desert Gold's SMSZ Project will total 407km2 in size, have a strike extent of 37.6km along the SMSZ, host 18 known gold zones and contain 537 >100 ppb gold-in-soil anomalies and 1,589 >50 ppb gold-in-soil anomalies. Most of which are untested.
- Linguekoto contains 95, untested, >50 ppb gold-in-soil anomalies with values up to 10,290 ppb Au, a group of which lie within and proximal to the same northeast-trending structural corridor, which hosts the Companies' Barani East gold deposit
Linguekoto has seen little previous exploration with only four groups of five shallow RC holes that tested only three soil anomalies >200ppb Au. Based on Desert Gold's experience with the recent discovery of numerous gold zones on its SMSZ Project, management strongly believes the systematic exploration of Linguekoto will lead to the discovery of new gold zones.
Desert Gold's President Jared Scharf remarked, "The acquisition of Linguekoto on commercially viable terms, is consistent with our strategy of creating an unparalleled regional gold exploration project in one of the most prolific jurisdictions in Western Africa. As soon as practical, our exploration teams will be on the ground mapping and prospecting with a goal to developing drill targets, in an area, which should host significant amounts of gold mineralization."
TERMS OF THE OPTION AGREEMENT
- Desert Gold to pay SUD Mining SARL (SUD) USD$150,000, of which USD $50,000 will be paid upon closing of the transaction with the balance of USD $100,000 to be paid over a three (3) year period;
- Incur exploration expenditures of USD $120,000 over a three (3) year period;
- During the three (3) year option period, Desert Gold shall be responsible for maintaining the permit in good standing and perform any and all obligations required by law;
- Bonus shares; In the event that, within 60 months from the transaction date, 100,000 oz Au, NI 43-101 compliant reserves are discovered at Linguekoto, the Company will issue 250,000 common shares to SUD. The Company will issue an additional 250,000 common shares for every additional 100,000 oz Au, NI compliant 43-101 reserves declared at Linguekoto, up to a maximum aggregate amount of 1,250,000 shares.
- SUD will retain a 5% carried interest, in the concession, before any interest retained by the government of Mali.
ON BEHALF OF THE BOARD
CEO & Director
ABOUT DESERT GOLD
Desert Gold Ventures Inc. is a gold exploration and development company which holds 3 gold exploration projects in Western Mali (SMSZ, Segala West and Djimbala) and its Rutare gold project in central Rwanda. For further information please visit www.SEDAR.com under the company's profile. Website: www.desertgold.ca
Jared Scharf, President and Director
Tel. No.: +1 (858) 247-8195
Don Dudek, P.Geo. is a director of Desert Gold and a Qualified Person under National Instrument 43-101, has reviewed and approved the Desert Gold scientific and technical information contained in this press release.
This news release contains forward-looking statements respecting the Company's ability to successfully complete the Offering. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements, including the inability of the Company to successfully complete the Offering. These uncertainties and risks include, but are not limited to, the strength of the capital markets, the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. The Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law. 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 or accuracy of this release. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.