Toronto, Canada (September 22, 2020) - Mammoth Resources Corp. (TSX-V: MTH), (the “Company”, or “Mammoth”) announces that it has received notification from Minera Centerra S.A. de C.V., the subsidiary company of Centerra Gold Inc. (collectively “Centerra”), with which Mammoth signed an option agreement to explore Mammoth’s 100% owned Tenoriba gold-silver exploration project located in southwestern Chihuahua State, Mexico, that Centerra has made the decision to cease exploration activities in Mexico, including at Tenoriba. In a conference call wherein Mammoth was informed of Centerra’s decision to cease exploration activities, Centerra expressed their enthusiasm for drilling the Tenoriba project. Furthermore, in the notice letter to Mammoth advising of this decision Centerra noted that the decision to cease exploration was “no reflection upon any of the exploration properties it was involved in, including the Tenoriba property”. In mid-August Centerra filed an application for permission to drill up to 139 drill locations at Tenoriba and a response/approval of this permit application is expected within weeks. Under the terms of the Agreement between Mammoth and Centerra there will be a 60-day period from notice to termination of the Agreement.
Thomas Atkins, President and CEO of Mammoth commented on Centerra ceasing exploration activities in Mexico, stating: “Mammoth receiving notice that Centerra was ceasing its activities at Tenoriba came as quite a surprise, especially so close to when we believed they would receive approval of their drill permit application and after making numerous preparations to begin drilling, including having had two drill contractors prepare to bid on the program. Mammoth has reviewed more than 30 exploration properties over the past six months looking for an opportunity to option a property where it could advance its own exploration efforts. Now, in addition to Mammoth continuing this search, Tenoriba is returning to the Company as a large, previously drilled gold-silver exploration property that has undergone the scrutiny of a senior company review leading to preparations for the commencement of a significant drill program.”
Tenoriba Exploration Highlights:
- Flagship gold-silver advanced stage exploration project in the prolific Sierra Madre precious metal producing region.
- Large 15 square km - 5 km x 3 km footprint of ubiquitous gold-silver mineralization in what has all the characteristics of a High Sulphidation -- Porphyry precious metal system, remains open along strike.
- Highest gold and silver values sampled graded 74 grams/tonne (g/t) gold and 62 g/t silver.
- Various targets over 4 km of the mineralized trend tested by 26 diamond drill holes of which 18 drill holes host tens of metres (m) of potentially economical gold-silver mineralization; drill intersections assayed grading up to 45.9 g/t gold over 1.9 m with lower grades over longer intersection widths, including 2.3 g/t gold over 43.0 m and up to 0.5 g/t gold over 126.8 m.
- Mineralization appears amenable to low-cost open pit mining and heap leaching processing.
- Drill ready with permit for up to 139 drill holes covering a 2.25 km x 1.25 km area submitted for approval.
- Centerra, during its 21 months optioning the project has spent almost C$1.2 million at Tenoriba, with total prior direct project exploration spending at Tenoriba exceeding C$4 million.
Recent Activities at Tenoriba:
Over the past six months in preparation for drilling, activities at Tenoriba included:
- Extensive surface lithological and structural mapping and sampling (137 samples collected and analysed by Centerra in addition to the more than 650 samples collected and analyzed by Mammoth) and drill core mapping and sampling (including Terraspec alteration clay analysis) by Centerra geologists.
- Reinterpretation of the geophysical data from the Mammoth 2015 IP-Mag geophysics survey.
- Drill hole targeting, including the creation of numerous cross sections consolidating surface, drill core and geophysical information.
- Submitted an application for a drill permit for up to 139 drill locations covering a 2.25 km x 1.25 km area of the property.
- Two drill contractors were preparing bids on the Centerra drill program.
Steps Forward for Mammoth:
Numerous options are currently under consideration in order to advance Tenoriba following Centerra’s notice and taking into account the project’s advanced stage of drill program readiness, these activities include:
- Review with Centerra geologists their drill targeting assessment, including review of its reinterpretation of the geophysical data, structural and lithological mapping, surface and drill hole sample results and the sections produced from this work.
- Consult with the two communities (ejidos) that oversee and had granted surface access at Tenoriba regarding continuation of surface access.
- Potentially commission an independent third party with in-depth experience of High Sulphidation-Porphyry mineralogical systems similar to Tenoriba to review the geological data set and make recommendations for the next phase of exploration.
- Explore optioning Tenoriba to another well capitalized mining/mineral exploration company.
- Reach out to individual investors, resource investment funds and royalty companies to source the capital to enable Mammoth to advance its initial assessment of drill targets at Tenoriba, including those identified by Centerra, following up on potentially economic intersections from prior drilling at Tenoriba and/or targets recommended by the aforementioned experienced third party technical review and based on these targets determine the feasibility and source the funds required to advance drilling.
- Merge Mammoth with another junior exploration company whereby the combination of companies creates enhanced exposure and attractiveness to raise the funds required to advance exploration at Tenoriba.
On the opportunities for Mammoth and Tenoriba, Thomas Atkins, President and CEO of Mammoth stated: “I’d be surprised if there are many exploration companies with a small $2 million market value which hold a 100 percent interest in a 5,000 hectare gold-silver exploration property where mineralization is sampled ubiquitously over a large 15 square kilometre area, has undergone two prior successful drill programs and a senior company review leading to the intention to drill over 100 drill targets, and is imminently drill ready. The more Mammoth explored Tenoriba the more excited we became of its potential and this potential attracted a large cap company which was prepared to spend up to C$13 million to earn a 70 percent interest. Mammoth is excited to again have 100 percent of Tenoriba and the numerous opportunities to advance the project’s future development.”
Mammoth intends to provide updates as it makes progress advancing various activities to move the Tenoriba project forward.
About Mammoth Resources:
Mammoth Resources (TSX-V: MTH) is a precious metal mineral exploration Company focused on acquiring and defining precious metal resources in Mexico and other attractive mining friendly jurisdictions in the Americas. The Company holds a 100% interest (subject to a 2% net smelter royalty purchasable anytime within two years from commencement of commercial production for US$1.5 million) in the 5,333 hectare Tenoriba gold property located in the Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico. Mammoth is seeking other opportunities to option exploration projects in the Americas on properties it deems to host above average potential for economic concentrations of precious metals mineralization.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the company's website at: www.mammothresources.ca., or contact Thomas Atkins, President and CEO at:416 509-4326.
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Forward Looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.