VANCOUVER, Jan. 14, 2020 /CNW/ - Dixie Gold Inc. (TSX
VENTURE: DG) ("Dixie
Gold" or the "Corporation) is pleased to announce
that it has expanded its district-scale exploration project
situated in the emerging Dixie Gold District near Red Lake, Ontario. The Corporation has
purchased a total of 197 mining claims covering approximately 4,011
ha (9,907 acres) of additional exploration rights, all of which are
contiguous to Dixie Gold's recently
announced Red Lake Project (https://dixiegold.ca/redlake).
As a result of the transaction announced today, Dixie Gold has become the largest
publicly-traded mineral claim owner in the developing Dixie Gold
District.
"The magnitude of our claim position in the emerging Dixie
Gold District is amplified by today's announcement. The addition of
nearly 10,000 acres of incremental exploration potential is of a
scale that mirrors the standalone size of many junior exploration
projects in their totality. In the case of Dixie Gold, we now have more than 62,414 acres
of mineral rights in the area making us the largest tenure holder
in the Dixie Gold District. In relation to our tight share
structure, being 25,662,187 shares currently outstanding, an
investor gains exposure to the equivalent of one full acre of
mining exploration rights in the Dixie Gold District for
approximately 411 common shares of the company, which sets up what
we believe to be one of the most compelling ratios of underlying
mining rights per share outstanding of any exploration company in
any Ontario mining camp,"
stated Ryan Kalt, Chairman and Chief
Executive Officer of Dixie Gold.
Expansion of the Red Lake Gold Project
The Red Lake Gold Project held by Dixie
Gold represents a district-scale exploration opportunity.
The Corporation believes the project holds both gold and base metal
(VMS) exploration opportunities.
The expansion of the Red Lake Gold Project increases the
Corporation's tenure position in the Dixie Gold District by 197
mining claims underlying approx. 4,011 ha (9,707 acres) bringing
the total project scale from 1,044 mining claims being approx.
21,258 ha (52,507 acres) to a new expanded total of 1,241 mining
claims representing approx. 25,269 ha (62,414 acres).
Figure 1 – Expansion Claims –
https://dixiegold.ca/files/Dixie_Gold_DG_Map_NewClaims.jpg
Figure 2 – Updated Project Map –
https://dixiegold.ca/files/Dixie_Gold_DG_Map_Updated.jpg
The Dixie Gold District is an emerging exploration camp with
contiguous property holders having had recent exploration success
involving both gold and base metal exploration. To this point,
Dixie Gold's new project is
immediately adjacent to projects being advanced by Great Bear
Resources Ltd. and BTU Metals Corp., situated northeast and east
thereof respectively.
Dixie Gold has updated its
website with maps relating to the expanded project, full link of
which may be found at: https://www.dixiegold.ca/
The new 197 mining claims announced today were acquired at a
cost equal to claim staking fees paid to the Government of
Ontario. A pre-existing two
percent royalty on the claims was assumed by the Corporation.
About Dixie Gold Inc.
Dixie Gold Inc. (TSXV:DG) is a publicly-traded exploration
company involved in a diverse portfolio of exploration projects in
Canada. For more information,
please visit www.dixiegold.ca.
Signed,
Ryan Kalt, Chairman & Chief
Executive Officer
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements address future events and conditions and
therefore, involve inherent risks and uncertainties. Actual results
may differ materially from those currently expected or forecast in
such statements.
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.
SOURCE Dixie Gold Inc.