FOCUSED ON EXPLORING ATLANTIC CANADA
(FRA: PH01) (OTCBB: PRZCF)
VANCOUVER, British Columbia – October 26, 2016 – Great Atlantic Resources Corp. (TSXV: GR) (the “Company” or “Great Atlantic”) is pleased to announce it has entered into a letter of intent (“LOI”) with Unity Resources Inc. (“Unity”), whereby Great Atlantic and Unity will negotiate and settle the terms of a definitive option agreement (the “Option Agreement”) that will provide Great Atlantic with an option (the “Option”) to acquire a 100% interest in Unity’s right, title and interest in and to the mineral claims compromising three mineral exploration and development projects known as the “Southern Golden Promise Project”, the “Pilley’s Mine Project”and the “Point Leamington Property”, all located in central Newfoundland (collectively, the “Property”) (the “Transaction”).
The Option will be exercisable by Great Atlantic making certain cash option payments and share option payments of common shares in the capital of Great Atlantic to Unity.
In the event that Great Atlantic exercises the Option and acquires a 100% right, title and interest in and to the Property, Unity will thereafter be entitled to a 3% net smelter returns royalty (the “Royalty”) to be determined and paid in accordance with the terms and conditions of the Option Agreement, payable upon the commencement of commercial production. Great Atlantic will be entitled to buy down up to 2% of the Royalty at any time in consideration for the payment of $500,000 to Unity for each 1%.
South Golden Promise:
The project is centred upon the Linda/Snow White Showing. Trenching has exposed sulphide-bearing quartz veining over a length of 170m and width of up to 5m. Samples include 105.28 g/t Au and 41.66 g/t Au. Best diamond drill result consists of 19.5 g/t Au over 1.15m including 63.3 g/t Au over 0.35m. Gold mineralization exhibits a nugget effect.
The Linda/Snow White Showing is located 22km southwest of Jaclyn/Golden Promise Deposit, also under option with Great Atlantic (NR May-31-2016) with a 43-101 compliant inferred resource of 921,000 tonnes grading 3.02 g/t Au. The mineralizing style is similar to that observed at the Linda/Snow White Showing.
An additional 86 claims were staked adjacent to the showing to cover an 8000ppb Au-in-soil sample where subsequent trenching discovered quartz vein float within the till that contained visible gold. A further 16 claims in the area cover an area of quartz veining cutting carbonatized gabbro that returned grab samples of 2.62 g/t Au and 10.04 g/t Au.
“The Company cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the South Golden Promise property or the newly staked ground”
A past producing mine with an historic estimate reserve of 1.159 million tonnes grading 1.23% Cu ( Grimley, 1968) or 627,373 tons at 2.34% Cu and 0.01 oz/ton (Walker, 1976). The volcanogenic massive sulphide deposit is analogous to Kuroko/Buchans style mineralization.
Other areas of interest on the property include:
A massive sulphide intersection from a vertical diamond drill hole that assayed 12.45% Zn, 5.5% Pb, 0.94% Cu and 0.102 oz/ton Au over 2.5m at a depth of 50.8m to 53.2m.
The Bull Road Showing with an historic estimate of approximately 200,000 tons with main trench assays of 12.4% Zn, 3.8% Cu, 0.9% Pb, 22 g/t Ag over 4.6m (Walker, 1976).
The Fragmental Zone with a drill intersection of 7.3% Zn, 1.4% cu, 0.7% Pb, 20 g/t Ag over 5.5m.
Several other massive pyrite showings are also located on the property.
This property surrounds most of the mining lease held by Callinex Mines Inc., which contains a volcanogenic massive sulphide deposit with a 43-101 inferred mineral resource of 14.1 Mt grading 1.86% Zn, 0.42 % Cu, 1.07 g/t Au and 17.12 g/t Ag.
“The Company cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Point Leamington property”
The scientific and technical information contained in this news release has been reviewed ans approved by Paul Delaney, a “Qualified person” as defined in national Instrument 43-101-Standard of Disclosure for Mineral Projects.
About Great Atlantic Resources Corp.: Great Atlantic Resources Corp. is a Canadian exploration company focused on the discovery and development of mineral assets in Atlantic Canada. Great Atlantic is currently building the company utilizing a project generation model, with a focus on antimony, tungsten and gold.
On Behalf of the board of directors
This News Release may contain forward-looking statements including but not limited to the Transaction, receipt of property titles, execution of the Option Agreement, the making of cash payments and share payments, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. Actual results may differ materially from those currently anticipated in such statements and Great Atlantic undertakes no obligation to update such statements, except as required by law. The reader is cautioned not to place undue reliance on any forward-looking information. There can be no assurance that the proposed Transaction will be completed or, if completed, will be successful.
Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including that: the current price of and demand for minerals being targeted by the Company will be sustained or will improve; the Company’s current exploration programs and objectives can be achieved; the Company will be able to obtain required exploration licences and other permits; general business and economic conditions will not change in a material adverse manner; financing will be available if and when needed on reasonable terms; the Company will not experience any material accident; and the Company will be able to identify and acquire additional mineral interests on reasonable terms or at all. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including: that resource exploration and development is a speculative business; that the Company may lose or abandon its property interests or may fail to receive necessary licences and permits; that environmental laws and regulations may become more onerous; that the Company may not be able to raise additional funds when necessary; potential defects in title to the Company’s properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; potential inability to find suitable acquisition opportunities and/or complete the same; and other risks and uncertainties listed in the Company’s public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither 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.
Great Atlantic Resource Corp
888 Dunsmuir Street – Suite 888, Vancouver, B.C., V6C 3K4