Metalquest receives OK to acquire West Cameron project

Executive Summary

• Metalquest Mining Inc. has received TSX Venture Exchange approval to acquire a 100% interest in the West Cameron gold project in Northwestern Ontario through an option agreement with Gallik Explorations Inc.
• The transaction involves earning the full interest by paying $500,000 in cash, $75,000 in aggregate cash payments, and $75,000 in share issuances, while reducing a 2% Net Smelter Return (NSR) royalty to 1%.
• The project is located adjacent to First Mining Gold Corp.'s Cameron gold project (acquired by Fiore Group) and hosts historical gold values up to 9.18 g/t Au, with a new porphyry intrusive target identified for exploration.

Key Details

• Transaction Structure: Metalquest can earn a 100% interest in the West Cameron gold project from Gallik Explorations Inc.
• Financial Consideration:
  • $500,000 cash payment to Gallik.
  • Aggregate cash payments of $75,000.
  • Aggregate share issuances valued at $75,000.
  • Share issuance price based on a 10-day trading average prior to issuance, subject to a minimum deemed issue price of 24.75 cents per share.
• Royalty Terms: The agreement includes a 2% Net Smelter Return (NSR) with a buy-down right to 1% NSR upon completion of the earn-in commitments.
• Termination Rights: Metalquest may terminate the agreement any time after the first year's commitments have been completed.
• Project Location & Size: Approximately 1,700 hectares (4,200 acres) in the Kenora mining district, Northwestern Ontario, approximately 10 km south of Sioux Narrows and 60 km south of Kenora.
• Infrastructure: Benefits from year-round road access via Highway 71, logging roads, and established trails.
• Geological Context:
  • Adjacent to First Mining Gold Corp.'s Cameron gold project (recently acquired by Frank Giustra's Fiore Group).
  • Gold mineralization hosted in shear zones, quartz-carbonate veining, altered felsic intrusions, and structurally deformed rock units.
  • Interpreted regional Cameron Lake fault trend extends across the property.
  • New porphyry intrusive target identified as a key focus for follow-up exploration.
• Historical Data:
  • Surface sampling returned gold values up to 9.18 g/t Au from sheared mafic volcanic rocks.
  • Grab samples from the new porphyry intrusive target returned values up to 1.9 g/t Au.
• Adjacent Property Resources (Cameron Lake):
  • Pit-constrained (0.55 g/t Au cut-off) Measured & Indicated: ~3.5 million tonnes at 2.45 g/t Au (~274,000 oz Au).
  • Pit-constrained Inferred: ~35,000 tonnes at 2.45 g/t Au (~3,000 oz Au).
  • Underground (2.00 g/t Au cut-off) Measured & Indicated: ~2.0 million tonnes at 2.90 g/t Au (~190,000 oz Au).
  • Underground Inferred: ~6.5 million tonnes at 2.54 g/t Au (~530,000 oz Au).
• Exploration Plans: Finalizing 2026 program including geological mapping, sampling, geophysical surveys, and targeted drilling to validate and expand known mineralization.
• Regulatory Status: Transaction subject to TSX Venture Exchange approval and a four-month-plus-one-day hold period.
• Qualified Person: Troy Gallik, PGeo, reviewed and approved the technical information. Note: Mr. Gallik is the underlying vendor and a geological consultant to Metalquest, thus not independent for NI 43-101 purposes, though considered at arm's length per TSX Venture Exchange policies.

Notable Quotes

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