Phenom Resources Identifies 3.2km Long Root System to Its Carlin-Type Gold System on the Carlin Gold Trend
Vancouver, British Columbia--(Newsfile Corp. - July 6, 2021) - Phenom Resources Corp. (TSXV: PHNM) (OTCQX: FVANF) (FSE: 1PY) ("Phenom" or the "Company") (formerly First Vanadium Corp.) is pleased to provide final results from its Induced Polarization (IP) survey over the gold system on its Carlin Gold-Vanadium Property on the Carlin Gold Trend of Nevada. Dave Mathewson, Geological Advisor and Jim Wright, Wright Geophysics, Inc., former Newmont senior geophysicist, have identified by the IP, a large north-south oriented root system to the much larger sulfide plume related to the gold system. The Company's IP survey identified this large root system now characterized as having a strike length of at least 3.2 kilometres (2 miles) long (north-south) and 300 metres (980 ft) to 1.3 kilometres (0.8 miles) wide (east-west). The strongest most persistent segment of the north-south trend is 1.4 kilometres long and between 500 metres to 1.3 kilometres wide (see Figure 1).
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Dave Mathewson states, "The finalized IP survey now shows the overall size, orientation, persistence and location of the root system on our property and points to prospective higher sulfide portions. The IP demonstrates the system is bigger than anticipated and thus, the significance of the system and the importance of smart vectoring tools in this large system. Our first hole is in progress to provide an initial test of the root system with our current stage of vector drilling."
Induced polarization geophysics is widely recognized as a highly effective vectoring tool for identifying Carlin style systems. IP was largely used in the discovery of the Betze, Screamer, Rodeo, Griffin and Deep Star gold mines on the Carlin Gold Trend. Root systems of Carlin-type gold systems generally contain higher sulfide content (detected by IP) and higher-grade gold portions of Carlin systems.
According to Jim Wright, geophysicist, the IP data quality is excellent with clear depth penetration in the order of 800 m (2625 ft), giving rise to a good solid moderate to strong chargeability anomaly, typical of abundant sulfides. Average chargeability amplitudes (a reflection of disseminated sulfide content) are in the 25-30 millisecond range. The IP survey also produced coincident strong resistivity lows likely caused by clay alteration.
Jim Wright produced a 3D model of the open-ended lengthy anomaly from the 15 lines of IP on the property. To best demonstrate the anomaly in plan view near the Rodeo Creek/Popovich contact, a slice of the 3D model at 500m below the surface is shown in Figure 1. This figure demonstrates the north-south length (3.2km), width (300m to 1300m) and strength (moderate-strong) of the anomaly. The strongest most persistent segment of the north-south trend is 1.4 kilometres long and between 500 metres to 1.3 kilometres wide.
Figure 2 is one example of an east-west IP sideview cross-sections or Inverted sections, that demonstrate the core of the untested chargeability anomaly or root system with depth, and its proximity to the Company's fall 2020 drilling (RC20-01). The upper contact of the lower plate Rodeo Creek and Popovich units are interpreted from drill data and coincide with the anomaly. Rodeo Creek and Popovich units are the host rocks to the majority of the big, and also the compact high grade gold deposits and mines in the Carlin Trend. The hole in progress is angled at 60o to the west into the anomaly from the same collar location as RC20-01.
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In other news, the Company has negotiated an amendment to the Carlin Vanadium property option agreement which previously allowed the Company to buy-out the 2% NSR royalty granted to the owner of the property for US$4,000,000, at the same time the Company exercises the purchase option and acquires 100% in the property. To exercise the option, Phenom is required to pay the owner US$1,900,000 by June 30, 2022. The Company currently has sufficient funds to make this option payment and expects to complete this option payment within the required times. In order to manage the NSR buy-out, the Company has negotiated an extension of time within which it may purchase the NSR royalty. Under the terms of the amendment agreement, the Company has agreed to pay half of the final cash payment (US$955,000) to the owner by July 30, 2021, with the balance (US$955,000) being due by June 30, 2022. The Company also agreed to issue 1,000,000 common share purchase warrants to the owner within 3 business days of receipt of TSX Venture Exchange approval to the amendment agreement, with each warrant being exercisable for one common share at a price of CAD$0.75 per share for a period of 5 years from the date of issue of the warrants. The parties further agreed that if the Company wishes to purchase the NSR royalty, it must do so by paying the owner US$4,000,000 by June 30, 2023. The Company, in its sole discretion, may also extend this deadline on an annual basis for up to 4 additional years, by paying the owner an additional US$250,000/year on or before June 30 of each year, commencing June 30, 2023, resulting in the latest possible payment deadline being June 30, 2027. The amendment agreement is subject to acceptance by the TSX Venture Exchange.
About First Vanadium Corp.
First Vanadium has an option to earn a 100% interest in the Carlin Gold-Vanadium Project, 6 miles south from the town of Carlin, Nevada and Highway I-80. The Project lies in the Carlin Gold Trend. Approximately 9 million ounces comprised of multiple gold deposits, including past producing mines, are present near the FVAN property (5-15km). The Carlin Gold-Vanadium Project also hosts the Carlin Vanadium deposit.
ON BEHALF OF PHENOM RESOURCES CORP. (formerly First Vanadium Corp.)
per: "Paul Cowley"
CEO & President (604) 340-7711
Technical disclosure in this news release has been reviewed and approved by Dave Mathewson, a Qualified Person as defined by National Instrument 43-101, and Geological Advisor to the Company.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this news release constitute "forward-looking" statements. These statements relate to future events or the Company's future performance and include the Company's ability to meet its obligations under the Access and Mineral Lease Agreement and the conditions required to exercise in full its option to acquire the Carlin Vanadium project, to finance and drill test the interpreted gold target model and to encounter potential gold zones shown in the gold model. All such statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results to vary from those expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those anticipated due to a number of factors and risks. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
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