Transition options Sawmill Au-Cu property near Sudbury

Transition Metals Corp has entered into an option agreement to acquire a 100% interest in the Sawmill Au-Cu Property located 40 kilometres northeast of Sudbury within Parkin and Hutton townships. The property consists of 106 contiguous mining claims, two mining leases and five patents totalling approximately 825 hectares. The property encompasses historic high-grade polymetallic gold (Au), copper (Cu), and silver (Ag) showings (see Figure 2); where grab samples collected by the Company in 2017 returned high-grade assays of 25.1 g/t Au and 158 g/t Ag at the A1 zone as well as 3.42 g/t Au, 1,295 g/t Ag and 4.81% Cu at the Galena showing.

CEO Scott McLean commented, "We consider the Proterozoic rocks to the east and south of the Sudbury Basin to be an emerging polymetallic gold district that is very underexplored. Transition has assembled a strategic land position within the area and now controls three properties; the Sawmill, Aylmer and Mongowin that collectively total 7,385 hectares (Figure 1). The newly optioned Sawmill Gold Property hosts numerous high-grade base and precious metal showings associated with zones of intense brecciation and strong carbonate alteration. Sawmill together with Aylmer and Mongowin provide the Company three exciting Sudbury Area polymetallic exploration plays each of which is mineralized and strongly altered."

Figure 1: Sudbury Area Polymetallic Exploration Properties.

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About the Agreement

Transition retains the option to earn a 100% interest in the property by issuing $300,000 in cash ($25,000 on signing) and 1,000,000 shares (100,000 on signing) to the Vendor and completing an aggregate of $1,000,000 in work over a 4-year period. If the Company vests its interest, the Vendor would retain a 2% Net Smelter Return royalty (NSR) with Transition retaining the right to buy back 1% NSR for $1.0 million and a further 0.5% NSR for an additional $1,000,000. 

About the Sawmill Gold Property

The Property is underlain primarily by mafic and felsic volcanics of the eastern Archean Benny greenstone belt that is unconformably overlain to the northeast by sediments of the Proterozoic Huronian Supergroup. Mineralization hosted within the Archean rocks is associated with quartz-carbonate veins in fractures and shears with biotite-chlorite-silica alteration. Mineralization hosted within the Proterozoic rocks is associated with stockwork quartz veins, brecciation of the sediments, and intense carbonatization. The alteration and brecciation of the Proterozoic sediments has similarities to a late stage IOCG-type mineralization adjacent to an area of Archean lode gold style mineralization.

Both styles of mineralization have seen various exploration programs through time. In the area of the lode gold mineralization, the A1 and B1 zones, the historic exploration results include: 

• 34.3 g/t Au over 2.0 metres from a 1979 Midpine Exploration trenching project;
• 29.8 g/t Au and 55 g/t Ag over 0.69 metres in a 1984 Inco drill hole;
• 5.05 g/t Au over a core length of 2.04 metres in a 1988 Longold Resource drill hole;
• 6.89 g Au/t over a core length of 1.37 metres and 6.21 g Au/t over a core length of 0.61 metres from a 1996 Meridian Resources drill program.

Mineralization in the Proterozoic rocks is divided between the Galena and the Calcite showings. Historic work in the Galena showing has returned results that include 24 samples of the felsic tuff with samples averaging 4.05 g/t Au with a high of 32.04 g/t Au from a 2010 Cascadero Resources project. Work at the Calcite Showing has returned results that include 1.54 g/t Au over 1.0 m and 0.58 g/t Au over 1.16 m from a 1986 Raretech Minerals drill project, and 1.56-2.43 g/t Au in 1990 grab samples.

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