Exploits Enters into Option Agreement for District-Scale Gold Project in Ontario
May 13, 2025 6:00 AM EDT | Source: Exploits Discovery Corp.
Toronto, Ontario--(Newsfile Corp. - May 13, 2025) - Exploits Discovery Corp. (CSE: NFLD) (OTCQB: NFLDF) (FSE: 634) ("Exploits" or the "Company") is pleased to announce that it has entered into an option agreement (the "Agreement") with Pavey Ark Minerals Inc. ("Pavey Ark"), an arms-length party, whereby Pavey Ark has granted the Company the right to acquire a 100% interest in the Hawkins property, located in Ontario, Canada (the "Property").
By entering into the Agreement, the Company secures a prominent exploration opportunity along a 60+ km belt of locally mineralized geology that replicates the setting of the Hemlo Gold Deposit, where over 21 million ounces of gold have been mined over the past 30 years. This is a district scale opportunity in Northern Ontario within 200 km of several operating gold mines.
The Property is anchored by the McKinnon Gold Zone, where a 2020 NI 43-101 compliant study that outlines a historic inferred resource of 328,800 ounces of gold, grading an average of 1.65 g/t gold, located within 200 meters of surface*. Mineralization at McKinnon remains open at depth and along trend. Compilation of historic data suggests the presence of encouraging gold sample values within early trenching located within one km of the eastern resource shell. Exploration will be planned to follow up on this near-term expansion opportunity to the east.
"Securing the Hawkins Property is a major milestone for Exploits Discovery," said Jeff Swinoga, President & CEO. "This acquisition delivers immediate value with McKinnon Gold Zone resource of over 300,000 ounces, and even more importantly, positions us in a Hemlo-style geological setting with clear district-scale potential in one of Canada's most prolific gold-producing regions. The McKinnon Zone remains open both at depth and along strike, with historic data indicating promising gold values in early trenching conducted within one km east of the current resource boundary."
Mr. Swinoga continued, "With multiple untested targets along a 60 km mineralized belt, and a historic resource already in place, this project provides an exceptional foundation for long-term discovery and value creation in a highly prospective region of Northern Ontario. It's a rare opportunity to acquire such a largely underexplored land package in Ontario, and we are excited to unlock its potential for shareholders."
"We're pleased to be partnering with Exploits Discovery, whose technical expertise and vision for advancing high-potential gold assets aligns well with our vision for the Property," said Richard Sutcliffe, President of Pavey Ark. "The Hawkins Project has significant untapped potential, and we look forward to seeing it move forward under Exploits' capable stewardship."
Significant groundwork has already been completed by the previous operator across multiple sites, enabling Exploits to move quickly to define and test high-value drill targets.
*The above referenced resource estimate for the Property is considered historical in nature and is based on prior data prepared by a previous property owner. While the Company considers the estimate to be reliable, a qualified person has not done sufficient work to classify the historical estimate as a current resource and the Company is not treating the historical estimate as a current resource. Significant data compilation, re-drilling, re-sampling and data verification may be required by a qualified person before the historical estimate can be classified as a current resource. There can be no assurance that any of the historical mineral resource, in whole or in part, will ever become economically viable. In addition, mineral resources are not mineral reserves and do not have demonstrated economic viability. The Company is not aware of any more recent estimate prepared for the Property. Even if classified as a current resource, there is no certainty as to whether further exploration will result in any inferred mineral resources being upgraded to an indicated or measured resource category.
Figure 1: Regional location map of the Hawkins property. (Production Statistics reported to End of 2023 - as listed in Report of Activities, 2023, for Timmins & Thunder Bay South Districts, of the Resident Geologist Program - OGS).
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Figure 2: Long-section of the McKinnon Zone. Discs represent intercept values of gold grams/tonne. Yellow-shaded areas represent Exploits' higher-priority exploration targets, once fieldwork commences onsite.
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Mineralization at McKinnon appears to remain open at depth and along trend. Compilation of historic data suggests the presence of encouraging gold sample values within early trenching located within one km of the eastern resource shell.
Figure 3: Detailed plan map of the central portion of the Hawkins property, with embedded geophysical mapping of Total Magnetic Intensity responses collected via 2020 airborne geophysical surveys. Note the distribution of historic surface samples (Falconbridge, 1980's) and corresponding gold values.
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Geological Setting of the McKinnon Zone
Previous technical studies indicate gold mineralization at the McKinnon Zone may be hosted within a sheared contact between felsic intrusive rocks and greenstone metavolcanics, with higher gold values typically associated with strongly silicified felsic units. Surface and drill core observations show presence of the sericite-silica-pyrite alteration, typically seen within the large orogenic gold systems situated within northern Ontario's gold-mining regions. Exploration reports and presentations by earlier operators suggest the main target-trend spans approximately 3.7 km length, with localized occurrences of gold mineralization apparently generating grab-sample assays reaching 10 g/t in value.
The Agreement
Under the terms of the Agreement, the Company shall have the right to earn a hundred (100%) percent interest in and to the Property in consideration for a series of cash payments, the issuance of common shares of the Company (valued on the basis of a 20-day volume weighted average trading price at the time of issuance) and incurring exploration expenditures on the Property, as follows:
| Cash | Shares | Exploration Expenditures | |||
| Year 1 | $200,0001 | $200,0001 | $500,000 | ||
| Year 2 | $200,000 | $200,000 | $500,000 | ||
| Year 3 | $200,000 | $200,000 | $500,000 | ||
| Year 4 | $200,000 | $200,000 | $500,000 | ||
| Year 5 | $200,000 | $200,000 | $500,000 | ||
| TOTAL | $1,000,000 | $1,000,000 | $2,500,000 | ||
| 1. Due upon signing. | |||||
Upon exercise of the option, Pavey Ark will retain a 2.0% net smelter royalty ("NSR") over the Property (other than in respect of the certain claims in the Agreement that are subject to a pre-existing royalty, which shall be subject to a 0.5% net smelter royalty).
National Instrument 43-101 Disclosure
Ken Tylee, P.Geo., VP of Exploration with Exploits, is a qualified person within the Province of Ontario as defined by NI 43-101 standards. Mr. Tylee has reviewed and approved the technical information presented herein.
About Exploits Discovery Corp.
Exploits is a Canadian mineral exploration company advancing its high-potential gold projects in Ontario and Newfoundland with a focus on value creation. Exploits aims to become a leading company in Canada's mineral exploration sector.
On Behalf of the Board
/s/ "Jeff Swinoga"
President and CEO
For more information, please contact:
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Forward-Looking Statements
This news release contains certain forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company's exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR+ at www.sedarplus.ca. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.
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