Etruscus Acquires High Impact Newfoundland Gold Project and Restructures Management

Rhea-AI Summary

Etruscus Resources Corp. has secured a 100% interest in the Lewis Gold Property located in Newfoundland, encompassing 25.67 square kilometers. This acquisition follows a series of successful historical explorations and positions Etruscus amidst a booming gold exploration landscape. The deal requires staged payments totaling $870,000 and the issuance of 3.1 million shares over four years. Incoming CEO Jason Leikam emphasizes the strategic importance of this acquisition, complemented by a robust exploration plan aimed at identifying high-priority drill targets.

Positive

• Acquired 100% interest in Lewis Gold Property, enhancing exploration potential.
• Strategically located in a high-activity gold exploration area.
• Staged option payments provide financial flexibility over an extended period.
• Management restructure positions the company for growth with experienced executives.

Negative

• Initial exploration is costly; potential for financial strain during aggressive drilling.
• Reliance on historical data poses risks if previous findings are unverified.

VANCOUVER, BC, July 21, 2021 /PRNewswire/ - Etruscus Resources Corp. (CSE: ETR) (OTC: ETRUF) (FSE: ERR) (the "Company" or "Etruscus"), a Vancouver-based exploration company, is pleased to announce that the Company has acquired an option to earn a 100% interest in the Lewis Gold Property (the "Property") in central Newfoundland. The Property consists of two claim blocks in the heart of the Peyton Linear gold trend: the Peyton South claims and the Linear claims. Together, the Property totals 25.67 square kilometers (2,567 Hectares) and establishes Etruscus in a key location within central Newfoundland's highly active exploration region (Click Here to View Map).

The Property has seen successful historical exploration along recognized regional structures and presents the Company with an attractive exploration opportunity. With recently improved infrastructure and ease of access, the Company believes this acquisition is the right property, a largely unexplored package, in the right place and at the right time. The Lewis Gold Property is located within a particular area that has recently seen robust financing and exploration news from neighbouring companies such as Exploits Discovery Corp. to the north and east, Sassy Resources Corporation to the west, and New Found Gold Corp. to the south (Click here to View Map). The burgeoning Newfoundland gold rush is expected to yield significant new discoveries and the Property is centrally located in the heart of it all.

Incoming President and CEO, Jason Leikam, states, "This is a watershed moment for the Company. Our first property acquisition in the Newfoundland Gold Belt positions Etruscus with high impact exploration opportunities in two of Canada's most prospective and exciting exploration regions, the other being in BC's Golden Triangle where an exploration program is ongoing at the Rock & Roll Property. We are also now initializing activity in Newfoundland and seeking to expand our presence within this highly active region. Our technical team is currently compiling historic exploration records, including geochemical, geophysics and drilling data to determine the initial steps of an aggressive exploration program. We are excited to get to work and we want to thank our property vendors for the confidence to partner with us on these highly compelling opportunities."

Option Terms 

Etruscus worked with three vendors to consolidate the Lewis Gold Property, including Mr. Gary Lewis, a well-respected Newfoundland-based prospector, and New Rock Mining Corp, led by Jeff Zajac. A total of three separate option agreements were completed to acquire 100% in the property claims for aggregate, staged consideration of $870,000 and 3,100,000 common shares over a four year period, according to the schedule in the table below:

Date	Cash	Shares
Acceptance Date	$110,000	500,000
First Anniversary	$150,000	625,000
Second Anniversary	$150,000	650,000
Third Anniversary	$195,000	650,000
Fourth Anniversary	$265,000	675,000
Total	$870,000	3,100,000

Each claim block carries a two percent (2%) Net Smelter Returns royalty, subject to the purchase of one percent (1%) for $2,000,000 on or before commercial production.

New Rock Mining CEO, Jeff Zajac, welcomed Etruscus to the province of Newfoundland by stating, "We were very impressed with both the management and geological expertise Etruscus brought to the project, two elements that we felt were critical in selecting a new partner. Ultimately, what won us over was their enthusiasm and vision to properly allocate resources to advance what we hope to be one of the next big gold success stories, in Newfoundland."

Property Overview

The Lewis Gold Property consists of 103 claims in two claim blocks totaling 2,567.56 hectares, located approximately 32 km from Gander, Newfoundland.  It can be accessed by highway and a network of unsealed forestry roads and trails.  Rail access is within 8 km of the claims and a powerline traverses the property.  The town of Gander offers all the conveniences of a major center including daily flights to St. John's and Toronto.

Property Geology

The Property lies within the tectonostratigraphic Dunnage Zone and the Exploits Sub-zone which is host to numerous orogenic gold showings and deposits, such as those on New Found Gold's Queensway Project.  Gold mineralization in the area is mainly hosted in ENE and NNW striking orogenic shear zones with much of the exploration focused on shears in sedimentary sequences and not of intrusive hosted shear zones.  The Property is underlain by the Mt. Peyton Batholith which is also cut by these ENE and NNW structures, including the NNW oriented "Mt. Peyton Trend" and remains an underexplored area within the Exploits Sub-Zone.

Historic Context

Recorded historic work on the Property began in the late 1980's with Noranda and later by Rubicon, Paragon Minerals as well as Gary Lewis and associated companies.  This work consisted of soil and IP surveys that partially overlap with the southern claims. Drilling programs, on and adjacent to the property, have confirmed gold mineralization and drill intercepts have included 8.83 g/t Au over 0.7 meters and 5.3 meters of 3.25 g/t Au.  Prospecting has also returned numerous boulders containing high grade gold including 25.8 g/t Au on property and 164 g/t Au just off property, down ice direction. In addition to this exploration, portions of the Property were sampled, notably at the Corsair and Sabre showings. Historic grab sample assays were reported (although unverified by the Company) up to 1,347 g/t Ag and 2.1 g/t Au.

Historical geochemical soil and IP surveys were successful in identifying multiple gold targets which remain untested by drilling. 

Exploration Plan

Etruscus is taking an immediate, targeted approach to exploration of the Property. Initial plans include complete property wide geochemical soil sampling. Follow up work will include more targeted and detailed soil sampling, mapping, and IP survey work later this field season.  The initial work is expected to delineate high priority drill targets.  The Mt. Peyton pluton has had limited historical exploration work and Etruscus is confident it will discover more gold zones on the Property by applying systematic and modern exploration methods.

Management Appointments

The Board of Directors announces the appointment of Jason Leikam as President and CEO. Mr. Leikam has served as an independent director of Etruscus Resources since its founding. He has over twenty years' experience in the junior capital markets, focusing on company formation, marketing and finance and administration. Mr. Leikam wishes to thank outgoing CEO Gordon Lam for his significant contribution in the formation and establishment of the Company. Mr. Leikam noted, "Since founding Etruscus four years ago, Gordon has led the Company's growth, built an impressive technical team, attracted dedicated management and maintained a healthy financial position and capital structure." He went on to add, "Mr. Lam will continue to support Etruscus as a director, shareholder, and consultant, continuing his focus on building shareholder value. The board of directors wishes to thank him for his notable dedication and diligence."

The Board of Directors also announces the appointment of Stephen Wetherup as Vice-President of Exploration. Mr. Wetherup is a structural and economic geologist with over 20 years of global exploration experience. He has worked for Fox Geological Consultants, Phelps Dodge Corporation of Canada and as a consulting geologist for numerous exploration companies including Freeport-McMoran. He is currently the Vice-President Geology with Caracle Creek International Consulting and the Vice-President of Exploration for Commander Resources Ltd.

The Company thanks past Vice-President of Exploration Dr. David Webb for his methodical and resourceful approaches to exploration that he brought to the Company since its inception, and for his diligence and professionalism. The Board of Directors wishes him success in his future endeavors. 

About Etruscus

Etruscus Resources Corp. is a Vancouver-based exploration company focused on the acquisition and development of precious metal mineral properties. The Company's assets also include the 100%-owned Rock & Roll and Sugar properties comprising 27,880 hectares near the past producing Snip mine in Northwest B.C.'s prolific Golden Triangle. As a new entrant in the very active Newfoundland exploration play, Etruscus is expanding its focus to include exploration activity in two of Canada's most active gold camps.

Etruscus is traded under the symbol "ETR" on the Canadian Securities Exchange, "ETRUF" on the OTCQB and "ERR" on the Frankfurt Stock Exchange. Etruscus has 36,886,622 common shares issued and outstanding.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Press Release may contain statements which constitute 'forward-looking' statements, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including quarterly and annual Management's Discussion and Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as intended, planned, anticipated, believed, estimated or expected. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

View original content to download multimedia:https://www.prnewswire.com/news-releases/etruscus-acquires-high-impact-newfoundland-gold-project-and-restructures-management-301338499.html

SOURCE Etruscus Resources Corp.

FAQ

What is the Lewis Gold Property acquired by Etruscus Resources Corp.?

The Lewis Gold Property is a 25.67 square kilometer gold exploration area in central Newfoundland.

What are the terms of the acquisition for Etruscus Resources Corp.?

Etruscus will pay $870,000 and issue 3.1 million shares over four years to acquire the property.

How does the Lewis Gold Property impact Etruscus's future?

The acquisition opens up high-impact exploration opportunities in a promising gold region.

Who will lead Etruscus Resources Corp. after the management restructure?

Jason Leikam has been appointed as the new President and CEO.

What is the significance of Etruscus's acquisition in Newfoundland?

It positions the company in a growing gold exploration area, potentially leading to significant discoveries.