Vancouver, BC, April 6, 2017 – Parallel Mining Corp. (the “Company”) (TSX‑V: PAL) is pleased to announce that the Company has entered into an option agreement (“Option Agreement”) to acquire a 100% interest in the 82-square kilometre Sebedougou Property (“Sebe”) in Burkina Faso.
The Sebe Property is located between Endeavour Mining’s Hounde Project and Acacia Mining’s South Hounde deposit. In September 2016, Parallel’s recently acquired 0909189 B.C. Ltd. carried out Rotary Air Blast (“RAB”) drilling and surface rock sampling over the Sebe Property as part of a due diligence program.
Sebe Project Located between Endeavour’s Hounde Project and Acacia’s South Hounde Deposit
Artisanal mining is active on the Property and covers a strike length of over 500 metres. Historical information indicated that samples taken at the bottom of artisanal mine shafts assayed between 3.0 and 6.6 grams per tonne (“gpt”) gold in seven of the nine shafts tested. Eight surface grab samples taken by 0909189 BC Ltd. in the vicinity of these shafts assayed between 2.9 and 7.8 gpt gold.
The effectiveness of the follow up RAB drill program was limited by an elevated water table and none of the fourteen holes penetrated to target depth. However, the final RAB hole, SEB-16-RAB-014, assayed 2.2 gpt over 18 metres (between 32 and 50 metres) prior to its abandonment at that depth, approximately 25 metres short of target depth. True width of this intersection cannot be determined from the information available.
To follow up these assays, Parallel has engaged Falcon Drilling Burkina Faso, S.A.R.L. to conduct a campaign of approximately 500-700 metres of core drilling on the property. This program is intended to begin immediately.
Robert Sibthorpe, Vice President, Exploration, comments “It’s good to be back in the Hounde Belt with the same team that discovered the now producing high grade Yaramoko gold deposit in Burkina Faso. The positive initial results from Sebe and the numerous high grade gold intercepts recorded at Garsay give Parallel a strong portfolio in the country. “
To acquire a 100% interest in the Sebe Property, Parallel must pay the owner an initial payment of $20,000 USD, a further $50,000 USD twelve months after signing, a further $100,000 USD twenty-four months after signing, and a final payment of $1,000,000 USD thirty-six months after signing. The owner will retain a 2% royalty on commercial mineral production from the property.
Parallel holds the right to earn a 100% interest in the 165.74 square kilometre exploration Garsay permit in the highly prospective greenstone gold belt located in northwest Burkina Faso, 60 kilometres southeast of Avocet Mining’s producing Inata Gold Mine and Souma deposit. Parallel also holds the right to earn a 100% interest in the 82-square kilometre Sebe Property in the Hounde greenstone gold belt in southwest Burkina Faso, located between Endeavour Mining’s Hounde Project and Acacia Mining’s South Hounde deposit.
Qualified Person: Shastri Ramnath, P.Geo, an independent Qualified Person under NI 43-101, has reviewed and approved the technical data and contents of this release.
Samples mentioned in this release were transported directly to Actlabs in Ouagadougou, Burkina Faso by 0909189 B.C. Ltd. personnel for sample preparation. Samples were sorted, dried, crushed and prepared for final chemical analysis using the Fire Assay AA method for Au. Field duplicates were used for the grab sampling.
About the Company
Parallel holds the right to earn a 100% interest in the Sebe Property in the Hounde Greenstone Belt. The Sebe Property is located between the producing gold deposits Hounde and South Hounde operated by Endeavour Mining and Acacia Mining respectively. Parallel also has an option to earn a 100% interest in the 165.7 square kilometer Garsay exploration permit in a highly prospective greenstone gold belt located in northwest Burkina Faso, 60 kilometers southeast of the producing Inata Gold Mine and Souma deposit.
On Behalf of the Board
President & Chief Executive Officer
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