Advance United Holdings signs term sheet to acquire Landrum gold deposit

Strong points

  • Landrum is a former gold producer
  • Gold samples up to 37.7 g/t were obtained from drilling on the property
  • Advance United would become 100% owner and operator

Toronto, Ontario–(Newsfile Corp. – March 21, 2022) – Advance United Holdings Inc. (CSE: AUHI) (FSE: 9I0) (the “Company”, or “Advance United” or “AU”) and Carolina Gold Resources Inc. (“CGR”) is pleased to announce the execution of a non-binding term sheet (the “Agreement”) to acquire the Landrum gold deposit located in South Carolina, United States.

CGR is prepared to sell 100% of its interest in the Landrum property (the “Property”) to Advance United in exchange for a series of cash payments, share issuances, construction expenses and other considerations , the terms of which the companies are currently negotiating. in preparation for a definitive agreement (the “Final Agreement”).

The Landrum gold deposit

The Landrum Property is located in Edgefield County, southern South Carolina, approximately 15 km from the town of Edgefield and approximately 50 km north of Augusta, Georgia (see Figure 1) .

The largest historical deposits, measured by approximately one million ounces of gold (Moz Au), include Haile (4.2 Moz Au), Ridgeway (1.5 Moz Au), Brewer (200,000 oz Au) and Barite Hill (60,000 oz Au) mines. It should be noted that the Haile mine is still in production by OceanaGold.

Figure 1: Location of the Landrum Project relative to current and past producer(s).

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/8072/117467_3a61e37934144a54_001full.jpg

The last major exploration efforts recorded on the Landrum property were led by Newmont Corp. in the mid-1980s. Newmont completed underground sampling of existing workings, soil geochemistry sampling, and limited VLF electromagnetic and magnetic surveys. By completing eight (8) drill holes around known mineralization, intersections comprising 6 g/t over 9 m and 20 g/t over 2.1 m were found.

Can't see this picture?  Visit: https://i1.wp.com/orders.newsfilecorp.com/files/8072/117467_3a61e37934144a54_002.jpg

Figure 2: Cross-section illustrating the drifts, shafts and drill intersections of the Landrum gold mine. (Based on report by J Prochnau of CGR)

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/8072/117467_3a61e37934144a54_002full.jpg

the main vein was historically developed on two levels at 50 and 200 feet and systematically sampled in the 1930s. Newmont resampled the 50 level in 1985. Drift sampling was used for the resource calculation. The resource does not comply with the NI43-191 standard but was created by experienced and competent people. The resulting resource was calculated at approximately 67,000 ounces of contained gold at a grade of 4.82 grams/tonne.

gold content
Tons Grade (gpt Au) Kgs Ounces
main vein 332,500 4.84 1609 51,750
wall vein 102,000 4.77 486.5 15,625
Total 434,500 4.82 2095.5 67,380

The Landrum veins consist of silicified zones generally composed of 20-50% quartz with a mixture of sericitized argillite containing 2-10% pyrite with traces of chalcopyrite. The veins range in thickness from less than one meter to 10 meters and occur within a broad sericite-quartz-calcite-pyrite altered shear zone within the argillite. The veins and the shear strike approximately N45°E and dip 60-70°NW.

Current work suggests that the Landrum system is composed of two sub-parallel vein systems. The main vein was developed by the historic workings and the footwall vein entirely delineated by the drill holes.

Jim Atkinson, CEO of Advance United, said, “We are very pleased to secure a property of Landrum’s quality and are excited to be able to expand our portfolio and reach the United States internationally. The existing gold resources are an excellent addition to our asset base and add substantial value to our portfolio, confirming our business model. In this way, we are designing a work program focused on confirming existing resources and expanding the mineralized footprint along strike and down dip – the deposit is open in all directions. day of this exciting project, in terms of the work program and the NI 43-101 standard, will add substantial value and position the property for a potential production partner. The similarity and proximity to other major deposits in the Carolina Slate Belt that have been developed with a large gold endowment makes this project very promising.”

Known historic production in the Carolina Slate Belt

Gold was first discovered at the Haile Gold Mine in 1827, and a rich history of producing significant quantities of gold has since been established.

In January 2017, the first gold was poured from the modern Haile gold mine after OceanaGold acquired the operation in late 2015. Commercial production began in October 2017. In 2020, Haile produced 137,000 ounces of gold. ‘gold.1

North Carolina and South Carolina have been gold mining states since before the California Gold Rush in 1849 and were actually the site of the first gold rush in America. At the time, gold was recovered from placer operations in the “Carolina Slate Belt” and since then large scale hard rock mines have been developed with production from at least five (5) significant deposits. To quote a recent USGS publication “The Carolina Slate Belt is a very prospective rock belt with the potential to hold additional undiscovered deposits of gold, copper, and other metals.” 2

Can't see this picture?  Visit: https://i2.wp.com/orders.newsfilecorp.com/files/8072/117467_3a61e37934144a54_003full.jpg

Figure 3: The Carolina slate belt and major deposits

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/8072/117467_3a61e37934144a54_003full.jpg

About Advance United

Advance United, headquartered in Toronto, Canada, is listed on the Canadian Securities Exchange in Canada under the symbol “AUHI” and on the Frankfurt Börse Exchange in Germany under the symbol “9I0”.

Advance United brings a totally different approach to the mining industry. We don’t mine. Instead, we have acquired a portfolio of undervalued gold properties and are increasing their value through the application of modern technology. We have a growing pipeline of similar properties that we are looking to acquire. And now we have launched Au Marketplace. A one-of-a-kind digital platform that connects commodity and mineral deposit owners with developers and producers.

We are exclusively involved in acquiring and advancing past projects – with no intention of bringing them back into production or operating them ourselves. Our expertise lies in identifying and acquiring undervalued properties with significant historical work, which were not profitable at the time, but which we believe have economic value at today’s prices.

We fund the development of reworked historical data and apply modern technology to underwrite new qualified reports, document quantifiable resources and reserves to current standards, thereby recognizing current value.

Our goal is to deliver immediate and long-term value to our partners and shareholders while seeking to eliminate exploration risk, so that we can all move forward together as soon as possible.

For more information about us, our projects, or to find out how you can get your project listed on the Au Market, visit www.advanceunited.ca.

Contact information
James Atkinson, geo., CEO
Email: [email protected]
Tel: (647) 278-7502

Qualified person

James Atkinson M.Sc., P. Geo., a Qualified Person (“QP“) as that term is defined by National Instrument 43-101 – Disclosure standards for mining projects, has reviewed and approved the geological information presented in this press release. The qualified person has not done sufficient work to verify the historical information on the property, particularly with respect to historical sampling, drill results and technical work provided by Newmont and others. The qualified person assumes that the sampling and analysis results have been completed according to standard industry practices. The information gives an indication of the exploration potential of the Property but may not be representative of the expected results.

Footnotes

1 Robert A. Ayuso US Geological Survey Mail Stop 954, National Center Reston, VA 20192

2 Gold Deposits of the Carolina Slate Belt, Southeastern United States: Age and Origin of the Major Gold Producers By Nora K. Foley and Robert A. Ayuso Guest Paper for a Special Session on Mining in the United States at the 2012 Prospectors & Developers Association of Canada International Convention, Trade Show & Investors Exchange, Toronto, Canada, March 7, 2012.

Forward-Looking Information and Cautions

This press release may contain “forward-looking information” within the meaning of applicable securities laws relating to trading in the Company’s securities and the direction of the Company’s business. These forward-looking statements can be identified by words such as “expects”, “anticipates”, “intends”, “intends”, “believes”, “projects”, “plans” and similar expressions. Forward-looking statements in this press release include statements regarding the Company’s ability to increase the value of its current and future mineral exploration properties and, in connection therewith, any long-term shareholder value, ability of the Company to mitigate or eliminate exploration risk, and the Company’s intention to develop a portfolio of historical gold properties. Readers are cautioned not to place undue reliance on forward-looking statements. These statements should not be construed as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those implied by such statements. Although these statements are based on management’s reasonable assumptions, there can be no assurance that the Company will continue to operate as described above. Readers are encouraged to review the Company’s annual and quarterly MD&As and other periodic filings by the Company with Canadian securities regulators under the Company’s profile on SEDAR at www.sedar.com. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances or actual results, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/117467

Comments are closed.