And Closes First Tranche of Its Private Placement
Edmonton, June 3, 2021 - Grizzly Discoveries Inc.
(TSXV: GZD) (OTCQB: GZDIF) (FSE: G6H) ("Grizzly" or the "Company") is pleased to announce that planning has commenced to evaluate the 18 high-priority conductivity anomalies that have been identified at its Robocop Property following analysis of the recent 400 line-km Versatile Time Domain Electromagnetic ("VTEM™") and magnetic survey data (Figure 1 below). Grizzly is planning field work to commence in June 2021 over the high-priority anomalies. The Robocop Property is 100% owned by Grizzly and is easily road accessible in Southeast British Columbia (the "Property"), near the hamlets of Grasmere and Roosville.
Brian Testo, CEO of Grizzly, commented, "We are excited to continue to progress the prospects at our Robocop property with field work commencing in June, which will be followed by planned drilling later this year. The geophysical anomalies will be drill tested following additional fieldwork to identify drill-collar locations. The Robocop geology and anomalies have potential for world-class copper-cobalt discoveries in a road accessible area offering significant logistical advantages."
In consultation with Mr. Martin St. Pierre, P. Geophysicist, of St. Pierre Geoconsultant Inc., the company is developing plans for an Induced Polarization (IP) survey and follow-up geochemical surveys to test a number of high and secondary priority geophysical anomalies identified in the vicinity of the "Discovery Area" (See Figure 2 below). In particular, IP surveys to cover anomalies 14-3, 15-3 and 16-3 in the vicinity of the Discovery Area, which has provided historical anomalous core intersections of up to 0.134% cobalt (Co), 1.19% copper (Cu) and 33.8 g/t silver (Ag) over 1.23 m, are being planned for execution in the upcoming program.
Fig 1. New mineral claims (in white outlines) on a map of calculated time constant TAU values for conductance for S Field (dB/dt) with Cu in rocks & soils.
To view an enhanced version of this graphic, please visit:
A number of high priority targets have been identified with some in close proximity to known Co-Cu-Ag geochemical anomalies identified in historical rocks grab samples, soils and drilling. Figure 2 below provides an example of several such targets in the vicinity of the main Discovery Area (Anomalies 14-3, 15-3 and 16-3) and a buried series of EM anomalies (13-3 and 54-3 to 58-3) along a ridge with significant down-slope Cu-Co-Ag anomalies on the south face of the ridge. These targets will be further investigated using IP or some similar ground geophysical technique in the upcoming program. Figure 2 also shows a number of EM anomalies of interest elsewhere on the property. All of these anomalies will be targeted with at least prospecting, rock, soil and stream sediment sampling during the upcoming exploration program.
Fig 2. EM anomalies (including high priority anomalies 13-3, 14-3, 15-3 & 16-3 as white stars) on a map of conductance for S Field (dB/dt) with Cu in rocks & soils.
To view an enhanced version of this graphic, please visit:
Figure 3 below shows a conductivity time channel profile of EM anomaly 16-3 and its relationship to the local total field magnetics in the vicinity of the Discovery Area. The anomaly shows up well in the mid to later time channels, suggesting it is buried. This anomaly may be topographically below the mineralization identified at the Discovery Area and may represent a separate target or a feeder target. The anomaly warrants follow-up exploration including ground geophysics and drill testing. Ground methods including additional geochemical sampling and ground geophysical methods will assist in refining the geological model of the Property and to target conductive portions of the assemblage, potentially those portions associated with both stratigraphic and vertical structural anomalies, and in particular those that might be associated with sulphide minerals and Co-Cu-Ag mineralization, in advance of a planned 2021 drilling campaign.
Fig 3. EM anomaly 16-3 in profile showing SFz (dB/dt) conductivity in the mid to late time channels(as well as a positive B Field) shown on a map of the total field magnetics.
To view an enhanced version of this graphic, please visit:
Further integration of the geophysical interpretation with the geological model is ongoing and is required prior to commencing additional ground work. The additional work will include plate and/or inversion modelling along with an integrated structural and 3D model of the combined EM and magnetic data. The results of this work will be released as they become available.
The property is hosted within a similar geological setting to the Idaho Cobalt-Copper belt where conductivity (EM) and magnetic surveying techniques have been used previously to successfully guide drilling of prospective targets and assist in making new metal discoveries.
HIGHLIGHTS FOR THE ROBOCOP PROPERTY
The Robocop Project is comprised of 9,053 acres (3,663 ha) in five mineral claims that are all road accessible, just off Provincial Highway 93 in southeast B.C.
Initial surface trenching in the late 1980's to early 1990's yielded up to 0.06% Co and 1.93% Cu over 6 metres (m) in one trench, and in a separate trench up to 0.146% Co, 1.8% Cu and 5.3 grams per tonne (g/t) Ag over 5 m in sediment-hosted sulphide mineralization within middle Proterozoic Purcell Group rocks (Thomson, 1990).
A total of 15 drill holes in the area between 1990 and 2008 have yielded several intersections of near surface Co-Cu-Ag mineralization with grades of up to 0.134% Co, 1.19% Cu and 33.8 g/t Ag over 1.23 m core length in hole R-1990-5 and 0.14% Co, 0.9% Cu and 2.7 g/t Ag over 3.1 m core length in hole R-1990-6 (Thomson, 1990), along with an intersection of 0.18% Co, 0.28% Cu and 4.1 g/t Ag over 1 m core length in hole R-2008-02 (Pighin, 2009).
All but one of the historical drillholes tested a single target in an area about 500 m by 350 m. The Property is approximately 10 km in length and 3.5 km in width and contains at least four untested anomalous soil +/- rock geochemical targets.
Sediment hosted Co-Cu-Ag mineralization is similar in style, age and host rocks to mineralization at Jervois Mining Ltd.'s Idaho Cobalt project and Hecla's Revett Formation hosted mineralization near Troy, Montana.
The Property has yielded significant historical cobalt, copper and silver results and presents an opportunity to discover battery and electrification metals as the world shifts to electric vehicles, sustainable practices and greener alternatives. The macroeconomic outlook for battery metals such as Co and Cu remains strong with the ongoing shift to electric vehicles. It is estimated that the battery sector accounts for approximately 57% of current Co demand; this is expected to grow over the next five years to 72%, and will require an additional 100,000 tonnes/annum of Cobalt to meet demand.1
GRIZZLY CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
Grizzly is pleased to announce that, on June 2, 2021, it closed on the first tranche of a private placement (the "Offering"), announced on May 17, 2021, by the issuance of 300,000 Units (as defined below) and 3,008,466 FT Units at a price of $0.06 per Unit and per FT Unit for gross proceeds of $198,508. The Offering remains open and the Company may close on additional subscriptions for the remaining 1,991,534 FT Units and 2,200,000 Units under the initial terms of the Offering.
Under the terms of the Offering, each Unit consists of one common share of the Company ("Common Share") and one non-transferable warrant ("Warrant"). Each FT Unit consists of one Common Share issued as a flow through share for the purposes of the Income Tax Act (Canada) and one half of one Warrant. Each whole Warrant entitles the holder to acquire one additional Common Share at an exercise price of $0.085 per Common Share until the earlier of: (a) 30 days following the issuance of a news release by the Company that the trading price of the Common Shares on the TSX Venture Exchange is at or greater than $0.10 per Common Share for 10 consecutive trading days; and (b) June 2, 2023.
The Company intends to use the proceeds from the Units for general working capital, and the proceeds from the Units and FT Units on exploration of its Greenwood and Robocop mineral projects in British Columbia.
In connection with the Offering, the Company paid cash finder's fees totaling $6,150 and issued 102,504 Finder Warrants (with the same terms and expiry date as the Warrants) to registered dealers. The Common Shares and any Common Shares issued on exercise of the Warrants and Finder Warrants will be subject to restrictions on trading until October 3, 2021 in accordance with the policies of the TSX Venture Exchange.
Following closing of this first tranche of the Offering, the Company has 94,660,180 Common Shares issued and outstanding. The Offering is subject to Final Acceptance by the TSX Venture Exchange.
Directors, management and insiders subscribed for an aggregate of 1,100,000 FT Units representing gross proceeds of $66,000. The purchase of such FT Units is considered to be a related-party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"),but is exempted from the requirements to obtain a formal valuation and to obtain minority approval, as the purchase of securities does not exceed 25% of the Company's market capitalization. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101.
The Company did not file a material change report more than 21 days before the expected closing of the Financing because the details of the participation therein by related parties of the Company were not settled until shortly prior to closing of the Financing and the Company wished to close on an expedited basis for business reasons.
The technical content of this news release and the Company's technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., P.Geo., who is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange, with 90 million shares issued, focused on developing its over 160,000 acres of precious and base metals properties in southeastern British Columbia. Grizzly is run by a highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.
On behalf of the Board,
Grizzly Discoveries Inc.
Brian Testo, CEO, President
Tel: 780 693 2242
For further information, please visit our website at www.grizzlydiscoveries.com or contact:
Tel: 604 347 9535
Neither the TSX Venture Exchange nor its 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.
Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
1 Cobalt's Price Rises Highlight Shift to Battery-Driven Pricing Dynamics, Benchmark Mineral Intelligence, November 19th, 2021