Gold X Mining Commences Definition Drilling and Resource Expansion Program at the Toroparu Gold Project - Seite 2

High Grade Definition Drill Program

The High Grade Definition Drill Program is designed to test continuity of grade within clusters of high-grade mineralization at several locations that occur in the sub-vertical structures discovered by HPX/Nordmin. These structures host the majority of the 1,811 gold assays grading greater than 3 g/t gold within the historical Toroparu drill database¹ and appear to extend both laterally and below the current open-pit resource shells defined by SRK. (Figure 1).

Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f95b2128-cab2-40a6 ...

Shallow Resource Expansion Drill Program

The Shallow Resource Expansion Drill Program primarily targets re-classification of Inferred Gold Resources contained within several areas of the Toroparu NW and Toroparu Main Zones; exploration for additional gold mineralization in areas not previously tested within the NW Zone; and extension of the overall Toroparu Trend thru step-out drilling of at least 600 metres beyond the northwest limit currently defined for the NW Zone. (Figure 2):

Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4ef99106-8a31-4d38 ... 

The drill programs are part of a larger project optimization process that will lead to a final feasibility study for the project that is targeted to coincide with the issuance of the Mining License by the Government of Guyana in 2021.

To date, the Company has invested more than US$150 million to discover and delineate its gold mineral resources, as well as to complete engineering and environmental studies required to enable the project to produce gold doré and gold bearing copper concentrates as detailed in the Company’s latest 43-101 technical report (the “2019 Technical Report”)².

Qualified Persons Review

The scientific and technical data pertaining to disclosure of the mineral resource estimates or economic information contained in the PEA in this news release has been reviewed and approved by Bart Stryhas, PHD, CPG and Mark Gibson, PrSciNat, High Power Exploration, who are Qualified Persons under NI 43-101 who consents to the inclusion of their names in this release.

Services Agreement

While the Services Agreement with HPX does not constitute a “related party transaction”, even if it were it would not be subject to any valuation, shareholder approval or other requirements since any fee payable thereunder is far below applicable thresholds and is payable in cash.  The Services Agreement was negotiated by HPX on its usual arm’s length terms and was approved by the independent directors of Gold X Mining, with the Chairman declaring his interest and abstaining. Under the Services Agreement HPX is only entitled to receive a fee if it produces a NI 43-101 compliant Pre-Feasibility Study report (to be prepared by a third-party engineering firm) which proves HPX’s concept regarding the Toroparu Project. The Success Fee is payable in cash and equal to five percent (5%) of Gold X Mining’s market capitalization in excess of $300,000,000, which is measured and payable on the earlier of a change of control of Gold X Mining and the commencement of commercial production at the Toroparu Project.