Huntsman Acquires the Flint Property, a District Scale Gold-Silver Project in Idaho

Rhea-AI Summary

Huntsman Exploration announced an option agreement to acquire the Flint Property in Idaho from a subsidiary of Headwater Gold Inc.. This acquisition covers 238 mineral claims spanning 1,845 hectares. The Flint Property is located near the DeLamar and Florida Mountain camps, which hold significant historical resources. Huntsman aims to utilize modern exploration techniques to assess the potential for bulk mineable gold and silver. The Agreement involves a cash payment of US$100,000 and the issuance of 8,450,000 shares, pending TSX approval.

Positive

• Acquisition of Flint Property enhances strategic position in low-risk jurisdictions.
• Potential for high-grade gold and silver mineralization identified at Flint.
• Modern exploration techniques could lead to significant resource discovery.

Negative

• Cash payment of US$100,000 may impact short-term liquidity.
• Issuance of 8,450,000 shares could dilute existing shareholders' equity.

VANCOUVER, BC / ACCESSWIRE / December 7, 2020 / Huntsman Exploration (TSXV:HMAN)(OTC PINK:BBBMF) (the “Company” or “Huntsman”) is pleased to announce that it entered into an option agreement (the “Agreement”) with a wholly owned subsidiary of Headwater Gold Inc. to acquire certain mineral claims located in Owyhee County, Idaho, known as the Flint Property (the “Property”). Flint consists of 238 claims, totaling 1,845 hectares (4560 acres). The Property lies on trend, ~1.2 km south of the historically producing DeLamar and Florida Mountain camps, where Integra Gold has recently defined resources totaling 2.1 Moz of gold and 116 Moz of silver (see Integra Resources Technical report dated Sept-9, 2019).

Historical Production at the Flint Mining Camp

Production of more than 1.5 million ounces of silver was reported from two veins in the Flint camp, which are currently on private land (not in the Agreement) in the core of the Property. Due to the antiquity of the development, few records remain. Generally, the veins in the Flint Mining Camp have been described as containing 20 to 30 ounces per ton of silver (686 to 1,029 g/t silver), with gold values between 0.04 and 0.1 ounces per ton gold (1.25 to 3.13 g/t gold).

All historical exploration details and resource estimates quoted herein are based on reports obtained and prepared by adjacent property operators. The Company has not completed the work necessary to verify results and the figures should not be relied upon, as they have not been verified by a Qualified Person. They are also not necessarily indicative of the mineralization hosted on the Company's Property.

Potential for Bulk Mineable and High-Grade Mineralization at Flint

The Flint Property represents an opportunity to apply modern exploration techniques with the goal of defining bulk-mineable gold and silver mineralization near already defined high-grade silver-gold veins. Potential for high-level gold mineralization at Flint, in a geologic setting analogous to the DeLamar deposit, has been recognized but never tested. Of note, high-level epithermal alteration has been mapped over a 4 km-long strike length in the same rhyolitic host rocks as the DeLamar Deposit. Tertiary volcanic rocks overlying the Flint vein system are preserved in the hanging wall of the Flint Creek fault and host widespread silica and clay alteration. The volcanic package comprises rhyolitic flows, vent facies, and basalts that are equivalent to the major ore-hosting units at DeLamar.

Peter Dickie, President and CEO for Huntsman, commented, "The acquisition of the Flint gold-silver project in Idaho directly supports our goal of diversified value creation in low-risk jurisdictions. We are also continuing to prep for our exploration programs in Nevada and Western Australia and look forward to providing further updates as we proceed."

Agreement Terms

Under the terms of the Agreement, the Company has made a cash payment of US$100,000. Upon receipt of TSX Venture Exchange acceptance of the Agreement, the Company must issue 8,450,000 common shares. The optionor will retain a 2% NSR on the Property. The Company also acquired by staking 174 claims within the area of interest of the Agreement, which forms part of the overall land parcel, for which the field work has been completed.

The Agreement is subject to the acceptance of the TSX Venture Exchange.

Neil McCallum, P.Geo., of Dahrouge Geological Consulting Ltd., a qualified person as defined by National Instrument 43-101 and a director of the Company, supervised the preparation of the technical information in this news release.

On Behalf of the Board of Huntsman Exploration Inc.

Peter Dickie
President and Chief Executive Officer

For more information, please contact 1-855-584-0160 or info@huntsmanx.com.

Neither TSX Venture Exchange, the Toronto Stock Exchange nor their 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.

Forward Looking Statements: Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in our forward-looking statements. Although we believe that the expectations in our forward-looking statements are reasonable, actual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

SOURCE: Huntsman Exploration Inc.

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FAQ

What is the Flint Property acquisition by Huntsman Exploration?

Huntsman Exploration has entered into an option agreement to acquire the Flint Property in Idaho, consisting of 238 claims over 1,845 hectares.

What are the financial terms of the Flint Property agreement?

The agreement includes a cash payment of US$100,000 and the issuance of 8,450,000 common shares upon TSX acceptance.

What is the strategic importance of the Flint Property acquisition for Huntsman?

The acquisition directly supports Huntsman's goal of creating diversified value in low-risk jurisdictions and expanding its resource portfolio.

Where is the Flint Property located?

The Flint Property is situated in Owyhee County, Idaho, near the historically producing DeLamar and Florida Mountain camps.

What is the history of mineral production at the Flint Property?

Historically, the Flint Mining Camp produced over 1.5 million ounces of silver and has significant gold and silver potential based on nearby resources.