Karus Gold Corp. (“Karus Gold” or the “Company” is pleased to provide a corporate update which includes the 2021 exploration programs at its FG Gold project (“FG Gold”) and Gold Creek project (“Gold Creek”), both part of the 1,000 square kilometer (“km”) South Cariboo Gold Property in British Columbia (see Figure 1).
Andrew Kaip, President and CEO of Karus Gold comments, “Our 2021 exploration programs at our two highly prospective gold projects – FG Gold and Gold Creek – in the South Cariboo were a success. Both programs confirmed the orientation of the gold mineralization at each project and sets us up for targeted 2022 drilling programs that continue to expand the high-grade mineralization. We anxiously await assays from each project in the coming weeks.”
FG Gold project
During 2021, Karus Gold drilled 7,142 metres (“m”) in 19 diamond drill holes (see Figure 2). The program successfully (1) confirmed the orientation of vein corridors hosting high-grade gold mineralization identified by the 2020 drill program; (2) demonstrated continuity of gold mineralization within vein corridors through 50 m spaced drill holes along trend; and (3) opened the potential for stacked vein corridors with several zones of increased veining outside of the targeted corridors. Refer to the September 23, 2021 news release for more information.
Assays from the 2021 FG drill program and district area program are being processed with results expected in Q1 2022. Based on these results Karus Gold will begin preparing for a 2022 exploration program that will be directed toward expanding the high-grade gold vein corridors at FG Gold which remain open along strike and at depth.
Gold Creek project
During 2021, Karus Gold drilled 1,374.6 m in five diamond drill holes were completed at Gold Creek (see Figure 3). The Gold Creek drill program was designed to confirm the orientation of high-grade gold mineralization in the Camp Zone. Based on this drill program Karus Gold is confident that high-grade at the Camp Zone strikes northwest and dips approximately 70 degrees to the northeast. The Camp Zone has been traced through wide-spaced drilling for 870 m along strike and to a depth of 280 m below surface. Refer to the July 29, 2021 news release for more information.
Assays are being processed and expect to be announced early 2022. The Company is planning a Phase 2 drill program at Gold Creek with the aim of expanding the dimensions of high-grade gold mineralization at the Camp Zone.
Current Offering Memorandum Financing and Public Listing Update
On November 29, 2021, Karus Gold Corp. filed an Offering Memorandum (“OM”) on SEDAR (www.sedar.com) under the Company’s profile. All proceeds raised pursuant to the OM will be used towards the Company’s ongoing listing application with the TSX Venture Exchange (“TSX-V”) and for general working capital purposes. The offering under the OM is expected to close by the end of December 2021 and will allow the Company to fulfill one of its requirements to be a “public company” as defined under subsection 89(1) of the Income Tax Act (Canada), thereby allowing Canadian shareholders that hold Karus Gold shares in registered and tax-free saving accounts. Shareholders should consult their own tax advisors on this matter.
Karus Gold filed an updated listing application in October 2021 and continues to work with the TSX-V to complete the listing process.
Technical information contained in this news release has been reviewed and approved by Andrew Kaip, P.Geo., who is Karus Gold’s President and CEO and is a qualified person under National Instrument 43-101 responsible for the technical matters of this news release.
About Karus Gold
Karus Gold is 100% owner of the 1,000 km2 South Caribou Gold Project that includes the drill-stage FG Gold and Gold Creek projects in British Columbia. Karus Gold is supported by strategic investors Eric Sprott; and insiders, together with the management and Board, own approximately 59% of the basic shares outstanding.