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February 18, 2020 (ACCESSWIRE via COMTEX) — TORONTO, ON / ACCESSWIRE / February 18, 2020 / Minkap Resources Inc. (KAP) (“MinKap” or the “Company”) is admiring to advertise that it has entered into an arm’s-length non-binding letter of absorbed ()LOI”) anachronous February 3, 2020 with DG Resource Administration Ltd. ()DGRM”). The LOI sets out the acceding of a proposed transaction pursuant to which the Company will access a 100% absorbed absorption in the Breccia Gold Property ()Breccia” or the “Property”) amid in Idaho, USA ()Proposed Transaction”).



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The Property

The Property is amid about 40 km southwest of Salmon, Idaho and is attainable via paved artery and a arrangement of well-maintained alluvium roads. The Property hosts the celebrated Gahsmith Gold Abundance (the “Gahsmith Gold Mine”), which is axial to a cogent low-sulphidation epithermal gold system. The Property consists of 80 claims accoutrement about 1,650 acreage aural the Blackbird Mining District, and while host to the Gahsmith Gold Mine, is additionally abutting to the south of the celebrated Musgrove Creek Mine.



Gold mineralization on the Property occurs aural an about 1,800 m allocation of the Meadows Fault Area (“MFZ”) (Figure 1), with the northernmost assuming referred to as the Lee Prospect, and the Breccia Gold Area aural the southern portion. Celebrated and contempo assay has apparent the gold mineralization to be aural an almost 500 m connected by 8 to 20m advanced area (the “Breccia Gold Zone”) of awful brecciated and breakable host lithologies, adjacent to the MFZ.

Image: https://www.accesswire.com/users/newswire/images/576875/image.png



Figure 1 Location of Meadows Fault Area and Celebrated Work.

The Breccia Gold Area was exploited via at atomic eight adits during the 1930’s and aboriginal 1940’s, with several thousand accoutrements of mineralized actual extracted, targeting high-grade gold mineralization aural quartz veins, hosted by a advanced area of brecciation. Shipments of hand-cobbed actual from the Gahsmith Gold Abundance reportedly ran as aerial as 34.3 g/t Au (1.0 oz/ton Au), with a blow brand of about 8.23 g/t (0.24 oz/ton Au), about the Company has not been able to affirm this abstracts beneath the conforms of NI 43-101 standards.

The Property underwent some assay in the mid- 1980’s that included metallurgical testing and bound drilling, as able-bodied as apparent and underground sampling. In 1987 a accumulated sample of 4,621 accoutrements of gold address actual was calm from a annoyer cut forth a 200 ft area of the Breccia Gold Area arctic of the South Adit. The actual was appear to accept had an boilerplate brand of 0.335 oz/t Au, about the Company has not been able to affirm those assays beneath the altitude of adhering to NI 43-101 requirements.

Two assignment holes completed in 1985 activated the area at depth, arctic of the South Adit. Though appraisal abstracts for these holes is unavailable, absorbed aperture DH-1 intersected the Breccia Gold Area from 200 to 300 ft, while vertical DH-2 connected aural the Breccia Gold Area for its absolute 100 ft length.

Prospecting and apparent sampling agitated out by DGRM in 2018 and 2019, suggests the gold grades are almost connected beyond the Breccia Gold Zone, with college grades associated with quartz attitude and replacements, which about action abreast the centermost of the zone. In total, 39 grab samples were calm from the Breccia Gold Area in 2018, these alternate an addition boilerplate of 6.33 g/t Au and 3.01 g/t Ag. Added sampling in 2019 included a absolute of 52 dent and grab samples, these alternate an addition boilerplate of 4.44 g/t Au and 4.83 g/t Ag (see Table 1 aloft for ranges and boilerplate grades). The Company cautions investors that grab samples are called samples and not necessarily adumbrative of mineralization hosted on the Property.

Table 1: Summary of Gold agreeable for the 2018 and 2019 Grab Samples, Breccia Gold Zone

Au (g/t) Range

2018 Totals

2019 Totals

<0.1

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6

12

0.1 – 1.0

10

12

1.0 – 5.0

12

14

5.0 – 10

2

8

>10

9

6

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Aloft accomplishment of the 2018 program, samples were palletized and alien via bales by Salmon River Stages to ALS in Reno, Nevada. Samples were bagged in the acreage appliance bolt bags, recorded and assigned a sample number. Assay consisted of multi-element ICP (ME-ICP61) and gold by blaze appraisal (Au-ICP22 and Au-GRA22).

Upon accomplishment of the 2019 program, both bedrock and clay samples were confirmed, put into pails and labelled for shipping. Samples were calm in polyurethane sample bags, recorded and assigned a sample number. Clay samples were alien out of Cutbank, Montana via FedEx arena carriage to ALS in Reno, Nevada for multi-element aqua regia assimilation (AuME-ST43). Bedrock samples were apprenticed aback to Edmonton, Alberta (DGRM’s arch office) and again alien via Purolator arena carriage to Actlabs in Ancaster, Ontario for aqua regia multi aspect (1E3 (ICP-OES)) and blaze appraisal (1A2-ICP)

ALS and Actlabs are bartering laboratories and absolutely absolute of DG Resource Administration Inc. ALS in Reno, Nevada and Actlabs in Ancaster, Ontario are both ISO/IEC 17025 accredited.

Image: https://www.accesswire.com/users/newswire/images/576875/Fig202182020.png

Figure 2: 15 m west of Adit 6. View to Southeast (sample y099086:84.3 g/t Au).

“The befalling to access and beforehand a cogent gold asset such as Breccia, puts MinKap in the different position of actuality able to analyze a accomplished bearing gold abundance at a time back adored metals are seeing abreast unparalleled interest. Celebrated assignment at Breccia has articular a significant, low sulfidation, epithermal gold system, which was activated by alone a few assignment holes, and several accumulated samples; with the better accumulated sample accepting alternate an boilerplate brand of 0.335 oz/ton Au,” declared Jonathan Armes, President of MinKap Resources Inc. “We are attractive advanced to the admission of a spring/summer assay affairs at Breccia, which will accommodate a cogent assignment affairs aimed at acknowledging celebrated grades and widths of the gold mineralization.”

The attributes and appearance of mineralization empiric at the Breccia Gold Area is appropriate of low sulfidation epithermal gold deposits. Some notable examples of this drop blazon accommodate Hishikari Japan, Round Mountain Abundance Nevada, and Fruta del Norte, Ecuador.

Immediate assay affairs for the Property accommodate arena geophysics and clay sampling, to be followed by a assignment affairs advancing to booty abode during summer months (permitting appliance has been submitted).

Proposed Transaction

Under the acceding of the LOI, the Company may access a 100% absorption in the Property by commutual the afterward over a 4-year period:

The accomplishment of the Proposed Transaction is accountable to the beheading of a absolute acceding and the cancellation of all accumulated and authoritative approvals, including that of the TSX Venture Exchange (the “TSXV”).

Circumstantial Financing

The Company additionally announces a circumstantial non-brokered clandestine adjustment of up to 10,000,000 units (each, a “Unit”) of the Company at a amount of $0.075 per Unit for accumulated gross gain of up to $750,000 ()Offering”). Anniversary Unit shall abide of one accepted allotment ()Common Share”) of the Company and one Accepted Allotment acquirement accreditation ()Warrant”). Anniversary Accreditation shall baptize the holder thereof to access one added Accepted Allotment at an exercise amount of $0.15 for a aeon of twenty-four (24) months from the date of issuance.

The Proposed Name Change

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The Company additionally intends to change its name in affiliation with the Proposed Transaction to “Ophir Gold Corp.” or any such added name that is accustomed by the lath of directors.

The TSXV has in no way anesthetized aloft the claim of the Proposed Transaction and has neither accustomed nor banned the capacity of this account release.

Further capacity of the transaction advised by the LOI will be included in consecutive account releases and acknowledgment abstracts to be filed by the Company.

QP

Mr. Garry Clark P.Geo, (Exploration Manager and a administrator of the Company), a Qualified Person (“QP”) as authentic by National Instrument 43-101, has accustomed the accurate and abstruse acknowledgment in this account absolution and able or supervised its preparation.

On account of the Lath of Admiral

MinKap Resources Inc.

For added information, amuse contact:

Jonathan Armes President & CEO Phone 1 (416) 708-0243

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that appellation is authentic in the behavior of the TSX Venture Exchange) accepts albatross for the capability or accurateness of this columnist release.

This columnist absolution contains advanced statements aural the acceptation of applicative Canadian and U.S. balance laws and regulations, including statements apropos the approaching activities of the Company. Advanced attractive statements reflect the accepted behavior and expectations of administration and are articular by the use of words including “will”, “anticipates”, “expected to”, “plans”, “planned” and added agnate words. Actual after-effects may alter significantly. The accomplishment of the after-effects bidding in advanced statements is accountable to a cardinal of risks, including those declared in the Company’s administration altercation and assay as filed with the Canadian balance authoritative authorities which are accessible at www.sedar.com. Investors are cautioned not to abode disproportionate assurance aloft advanced statements.

SOURCE: MinKap Resources Inc.

Copyright 2020 ACCESSWIRE

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