Nobel Resources Provides Next Phase Diamond Drilling Plan, Algarrobo Copper-Gold Project, Chile and Announces Marketed Offering and Concurrent Non-Brokered Private Placement
TORONTO, Sept. 01, 2021 (GLOBE NEWSWIRE) -- Nobel Resources Corp. (TSX-V: NBLC) (the “Company” or “Nobel”) Is pleased to announce that it is mobilizing to commence diamond drilling on the large targets identified on its Algarrobo copper project in Chile (the “Project”), Figure 1 (see news releases dated August 16 and June 11). The Company has laid out a minimum of 10,000 meters diamond drill program which is expected to commence on September 10, 2021. The contract has been awarded to AK Drilling, a highly reputable firm based in Santiago Chile.
The Company is planning a drill campaign to test 5 large targets comprising magnetic and coincident IP anomalies and with associated copper mineralization identified near surface in most cases (Figure 2 below shows the targets and approximate locations of the planned drilling). The campaign will comprise 40-50 diamond drill holes ranging in depth from 100 meters to approximately 500 meters for a total of 10,000 – 12,500 meters of drilling. Given the large scale of particularly the Central Target, several long holes per section will be required to evaluate the anomalies. The configuration used for the IP survey penetrates to at least 400 meters and the anomalies persist to that depth. Typically, IOCG deposits have a large vertical extent that can exceed 1 km. The targets are as follows:
- The Central Target: This target is the most prominent feature identified by Nobel’s work on the Project. This large target extends approximately 4 km with an arcuate shape and is approximately 2-2.5 km wide. The target comprises coincident magnetic and IP anomalies and is situated directly in the area where two highly copper mineralized structural trends (The Northeast Trend where copper mineralization is documented over 6 km by artisanal mining and the Gloria Trend in the south) intersect. This target is completely sand-covered and the area has never been explored or prospected by the artisanal miners as a result. Due to the very large scale of this target, drill holes could extend up to 500 meters deep and will require several holes per selected section to test the anomaly. On the IP pseudo sections, the chargeability anomaly appears to form along the contact of what is interpreted to be a barren intrusive body which is similar to the geological setting at the Michilla Mine.
- The Northeast Target: The NE target occurs close to the area where the majority of artisanal mining has occurred on the Project. High grade copper has been identified in these workings along a distance of approximately 6 km. The target is approximately 2.5 km long and 750 meters wide. The IP has identified what is interpreted to be a sulfide-rich zone at depth below the oxide layer. This would manifest as copper oxides closer to surface.
- Gloria Target: The anomaly occurs within the Gloria mineralized trend, adjacent to the north, of the area where high grade copper oxide mineralization has been identified in drill holes. This target extends in a NW direction towards the Central Target and is approximately 2 km long 600 meters wide.
- Southwest Target: This target comprises a strong magnetic and coincident IP anomaly in an area not previously explored. It is a well defined one line anomaly situated on what may be the continuation of the Central target or the Northeast Mineralized Trend.
- North Central Target: The NC Target is a strong one line anomaly between the NE target and the Central target south of an area where abundant copper veins and workings occur.
David Gower, P.Geo., CEO of Nobel noted: “The work to date has generated very compelling geophysical anomalies with large scale. Particularly, given the context that there is high grade copper mineralization that extends for kilometers in the vicinity of these anomalies. It is unusual in my experience to be doing the basic geological and geophysical surveys in an area with so much evidence of extensive copper mineralization, and located within the Chilean copper belt, one of the most prolific copper producing areas in the world.”
Vernon Arseneau, P.Geo, COO of Nobel stated: “The geophysical surveys have identified high priority targets where large scale magnetic features are directly coincident with IP anomalies comprising chargeability highs and resistivity lows which is the correct response for a mineralized system with large scale potential. We expect to be coring on September 10, 2021. We are mobilizing a track-mounted diamond drill that is capable of traversing the sandy terrain in the dune covered area at the central target.”
Marketed Offering and Concurrent Non-Brokered Private Placements
Nobel is pleased to announce that it has entered into an agreement with Clarus Securities Inc. as lead agent on behalf of a syndicate of agents (collectively, the “Agents”), whereby the Agents will raise up to C$3,500,000 (the “Offering”) of units (the “Units”) to be priced at C$0.45 per Unit. Each Unit is comprised of one common share in the capital of the Company (“Common Share”) and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share at an exercise price of $0.60 for 36 months following the completion of the Offering.
The Company also intends to undertake, concurrently with the Offering, a non-brokered private placement of Units for additional aggregate gross proceeds of up to C$1,500,000 on the same terms as the Offering (the “Non-Brokered Offering”, and together with the Offering, the “Offerings”).
The proceeds raised from the Offerings will be used by the Company for exploration and for general corporate purposes.
The Non-Brokered Offering is expected to close on or about September 10, 2021 and the Offering is scheduled to close on or about September 23, 2021, and each is subject to certain conditions including, but not limited to, the receipt of all necessary approvals of the TSX Venture Exchange. The securities to be issued under the Offerings will be offered by way of private placement exemptions in all the provinces of Canada. The Units to be issued under the Offerings will also be offered offshore, including in the United Kingdom pursuant to applicable exemptions and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the issuer and its management, as well as financial statements.
Nobel Resources has the right to acquire 100% interest in the Algarrobo Iron Oxide Copper Gold Ore (IOCG), a potential IOCG style high grade copper property in Chile. The country is a top mining jurisdiction as it is strategically located within 25 km from port and has world-class IOCG deposits within the Major Candelaria belt. Chile’s mining capabilities benefit from close to surface, high grade mineralization within the mining face and has the necessary permitting in place.
For further information, please contact:
Chief Executive Officer
The scientific and technical information in this news release has been reviewed and approved by Mr. Vernon Arseneau, P.Geo, and Mr. David Gower P.Geo., Qualified Persons as defined by National Instrument 43-101 of the Canadian Securities Administrators.
Cautionary Note Regarding Forward-looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the mineralization of the Project, the prospectivity of the Project, the Company’s exploration program and the results thereof, the Company’s drill program, the Offerings, the use of proceeds of the Offerings and the Company’s future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward- looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Nobel, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operation in foreign jurisdictions; ability to successfully integrate the purchased properties; foreign operations risks; and other risks inherent in the mining industry. Although Nobel has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Nobel does not undertake to update any forward-looking information, except in accordance with applicable securities laws.