VANCOUVER, BRITISH COLUMBIA – Providence Gold Mines Inc. (TSXV: PHD) (“Providence” or the “Company”) is pleased to announce results from an underground 3-D Laser Scan Survey.
As reported on September 25, 2017 the Company commissioned Aero Geometrics of Vancouver, British Columbia to complete a 3-D Laser Scan Survey of the six hundred level of the historical Providence Mine.
Prior to the survey, the Company completed both geological mapping and channel sampling of the 600 level workings. Amongst other details, the survey delineated fine characteristics of the Providence quartz vein system within the drifts, crosscuts and stopes.
Examination of the survey results revealed where the vein diverges from the main 600 level access drift and re-enters on the 600 level at the Consuelo drift 263 metres along strike to the north.
The Company previously recognized the diversion; however, it was poorly understood until now. With the assistance of this new technology, the extension to the Providence Vein can be clearly identified. Geological mapping suggests that the Providence Consuelo, Bonita, Mexican and McCarthy veins are all part of the same vein system which we now refer to as the “Providence Vein” system which has a strike length of 2.2 km.
Tim Daly of Aero Geometrics of Vancouver, British Columbia states,
“Aero Geometrics Ltd. would like to thank Ron Coombes and Providence Gold Mines for the opportunity to work together on the project at the Providence Mine. To benefit from the knowledge discovered by the 3D terrestrial laser scanning technology shows wisdom on your proactive state of the art approach.
This technology allows the visualization of highly accurate 3D data to the tune of 300 billion points and is definitely going to bring new life to the historical work done to date.
This roadmap of data can be described as the MRI of the earth, a beautiful picture that tells the whole story and eliminates the guess work.
Companies that have existing underground operations who do not have this type of scanned data are behind the times.”
The Company believes that the historical operators, in attempting to follow the vein, lost contact with the mineralization. The Company believes that the vein lies west of the 600 level access drift, a distance varying between less than 10 to 65 metres in the area in question.
This zone represents one of numerous primary drill targets along the known 2.2 kilometre strike length of the vein. In addition, results of the Company’s recently completed soil geochemical survey, suggest that a zone of elevated gold grades represent a portion of the previously unseen vein system that projects to surface along strike.
John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release. Mr. Kowalchuk is a senior geologist consulting to the Company. Mr. Kowalchuk is not independent as he is a director of the Company.
ON BEHALF OF THE BOARD
Ronald Coombes, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Contact: Robert Eadie
Mobile: 1- 604-724-2369
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Transaction; the terms and conditions of the proposed Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the proposed transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities, lack of investor interest in the Financing; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.