AGORACOM Small-cap Investor Relations Blog

Vancouver, British Columbia…Affinity Metals Corp. (TSX-V:AFF) (FRANKFURT: 34IA) (“the Corporation”) (“Affinity”) is very pleased to report that it has acquired, through staking, a mineral property in Quebec, Canada that adjoins Osisko’s world class Windfall Lake project claim holdings. The property has been named the Windfall North. The property consists of 96 mineral tenures spanning 5143.15 hectares and straddles the very prospective main lithological contact and structural trend along strike to the northeast from Osisko’s rapidly growing Windfall Lake deposit within the prolific Abitibi Greenstone Belt.

Location of Windfall North Property

Abitibi Greenstone Belt   The Abitibi Greenstone Belt, along with the Fraser Institute deeming it the 4th most attractive mining jurisdiction in the world, is home to dozens of world class deposits including: Val-d’Or Chibougamau Kirkland Lake Timmins Detour Lake Malartic Bousquet Rouyn-Noranda Larder Lake The Abitibi is renowned as the world’s largest mineral-rich greenstone geological belt. The geological structure spans 450 km long by 150 km wide and runs through the Canadian Shield, from west of Timmins, Ontario, then eastward to Chibougamau, Quebec. The region’s history hosts over 100 mines that have aggregately produced an excess of 170 million ounces of gold. While the belt is known primarily for its prolific gold mines, base metal production in the region is also substantial at over 400 million ounces of silver, 15 billion tons of copper, and 35 billion tons of zinc.   Osisko’s Windfall Lake Gold Deposit   The Windfall Lake Project is reportedly one of the highest grade resource-stage gold projects in Canada and continues to grow as more discoveries are made. Osisko recently reported Windfall Lake indicated resources of 2.39 million tonnes at 9.1 g/t Au (1,206,000 oz. gold) and inferred resources of 10.61 million tonnes at 8.4 g/t. (3,938,000 oz. gold).  Osisko has defined the resource approximately 2000m on strike and 1500m depth, and continues to drill at an impressive pace. They hit the million meter drilling mark earlier this year in anticipation of an updated resource estimate in the later part of 2020 and a feasibility study to come out next summer.   In 2018, a Preliminary Economic Assessment (PEA) forecast was done on the Windfall Lake Project. At the time it contained  around 3 million oz. gold. As it stood then , it would cost $397 million to build the mine that would produce an average of 218,000 oz. gold annually, over 8.1 years. The study projected an after-tax internal rate of return of 32.7% and a net present value of $413.2 million using a discount rate of 5%.   The PEA in 2018, indicated Windfall had very strong economics with a $1,300 gold price and a 6.7 g/t gold grade deposit. With gold in the $1,900’s and an inferred resource estimate of 9.1 g/t Au, the Windfall project has exponentially grown in value. The region will become even more profitable by the means of a 30-year Grande Alliance agreement. The agreement covers road, rail, port and power infrastructure in the region, including a powerline from Lebel-sur-Quévillon directly to the Windfall site.   Mick Carew of Haywood Securities commented in a northern miner article (dated May 29, 2019), on the growing results, and states they “reflect the continued assertion that Windfall is part of a larger, dynamic gold mineralized system” and “demonstrate the significant exploration potential beyond the immediate footprint of the current Windfall resource.”   Selected high-grade drill intercepts from Osisko’s Windfall program (last 12 months): 143 g/t Au over 2.0 metres in OSK-W-19-2197-W1 153 g/t Au over 3.4 metres in WST-19-0234 376 g/t Au over 2.0 metres in WST-20-0310 199 g/t Au over 5.0 metres in WST-20-0312 34.8 g/t Au over 10.4 metres in OSK-W-20-2266-W1 171 g/t Au over 2.5 metres in WST-20-0463 173 g/t Au over 2.0 metres in OSK-W-20-2139-W8 21.0 g/t Au over 13.0 metres in OSK-W-2256-W1 115 g/t Au over 5.6 metres in OSK-W-20-2256-W2 1475 g/t Au over 4.6 metres in OSK-W-19-1731-W2   Windfall North Property Geology

Affinity’s North Windfall claims are located along the contact of a dioritic gneiss terrain and a granitic terrains. It is strategically positioned directly along the Windfall and Romeo faults and is located approximately 9 km NNE from Osisko’s Windfall Lake project. The Windfall fault, which is interpreted to represent the ductile level root feeder system that plumbs and controls the location of Osisko’s Windfall deposit model, is interpreted to continue northeast into Affinity’s Windfall North claim holdings along strike where it diverges into two separate structural traces and subducts beneath the granitic pluton.

Affinity staked the North Windfall claims based on the interpreted northeast trend of the Windfall Lake Fault from the Windfall Lake gold deposit and plans to conduct a geological and geophysical data compilation in order to generate drill targets.

Qualified Person

The Qualified Person for this news release for the purposes of National Instrument 43-101 is Kevin Montgomery, P.Geo. and he has read and approved the scientific and technical information that forms the basis for the disclosure contained herein.

About Affinity Metals

Affinity is following a hybrid approach of combining the advancement of strategic assets along with following a Project Generator model.

In addition to the recently acquired Windfall North property, Affinity presently holds two properties in British Columbia as well as five additional properties located near Timmins, Ontario.

The Regal project is located near Revelstoke, BC in the northern end of the prolific Kootenay Arc and hosts several major geophysical anomalies as well as three historic small-scale past producing mines. An exploration program, including in excess of 3,000 meters of drilling, is presently underway on the project.

Affinity very recently acquired the Carscallen Extension property located immediately adjacent to the Melkior-Kirkland Lake Carscallen project.

On behalf of the Board of Directors Robert Edwards, CEO and Director of Affinity Metals Corp. The Company can be contacted at: [email protected]

Information relating to the Company is available at: www.affinity-metals.com

Vancouver, British Columbia–(Newsfile Corp. – October 5, 2020) – Affinity Metals Corp. (TSXV: AFF) (FSE: 34IA) (“the Corporation”) (“Affinity”) is very pleased to report that it has entered into an option agreement to earn up to a 100% interest in the Carscallen Extension property located immediately adjacent to the Melkior Resources- Kirkland Lake Gold Carscallen Project approximately 25 km west of Timmins, Ontario, Canada. Affinity’s Carscallen Extension property consists of 47 claim units covering approximately 940 hectares.

Melkior’s Carscallen property has gained considerable attention in recent months since Kirkland Lake Gold (“KL”) first entered into negotiations to join with Melkior in advancing the property. On September 30th, 2020, Melkior closed a strategic partnership with KL in an option deal worth up to $110 million. The confidence of a major producer like KL entering into an agreement of this size is very promising and shows the potential of this newly discovered gold system.

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The Carscallen hosts high-grade gold and has strong indications of a base metal volcanogenic massive sulphide (VMS) system. In a news release dated June 26th, 2020, Melkior reported that to date, they have delineated a potential 800m striking gold system running NW-SE through the Zam Zam and Shenkman Gold Zones that is also open in both directions. The Affinity Carscallen Extension property borders Melkior’s property to the north and is located on trend approximately 1000m NW of the presently defined gold system with similar underlying geology.

Melkior’s Carscallen property and Affinity’s Carscallen Extension property are located on the western end of the Abitibi Greenstone Belt, in the geopolitically stable and resource friendly province of Ontario. Along with the Frasier Institute deeming it the 4th most attractive mining jurisdiction in the world, the Abitibi Greenstone Belt is home to dozens of world class deposits, and has reportedly produced in excess of 170 million ounces of gold, 400 million ounces of silver, 15 billion tons of copper, and 35 billion tons of zinc.

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Affinity previously entered into an option agreement for the West Timmins property with the same arm’s length party that also holds the Carscallen Extension property. The West Timmins property was recently drilled by Affinity. An existing single shallow drill hole was extended to 525m in depth in an effort to accomplish two objectives: 1) to test the validity and accuracy of the Stargate Acoustic EM technology to delineate geological contacts, more specifically to define the extent of granite caps which commonly mask the underlying geology within the west Timmins region, and 2) to test the geology immediately beyond the granite cap.

The technology was able to predict the contact where the granitic cap terminated in the hole. This ability to potentially map granitic intrusions and caps at depth, where other geophysical techniques have failed, has far reaching positive implications and potentially opens up many possibilities for increasing exploration success in granitic environments within the Timmins camp and elsewhere.

The geological environment to the 525m depth drilled did not produce any significant precious metal values in the core samples that were assayed.

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Given the recent Melkior-KL partnership, and after considerable examination of the regional data specific to the immediate vicinity around Melkior’s Carscallen Project, it was determined that Affinity’s immediate focus and priority should shift away from the Timmins West property to the south and instead to secure the northern Carscallen Extension project and pursue a more aggressive exploration program on this property located on trend to the north and much closer to Melkior’s recent work that attracted KL to the Carscallen property.

The relationship that Affinity has developed with the owners holding both the Timmins West and Carscallen Extension properties allowed us the flexibility to have optionality between priorities and projects. The Timmins West property option has now been terminated with no cash or share payments having been made, and the Carscallen Extension project has effectively replaced the previous agreement. Affinity has the opportunity to enter into a new option agreement and return to the Timmins West property at the discretion of the optionor but Affinity may not hold both the Timmins West and Carscallen Extension properties concurrently. Affinity’s present and immediate focus is now to advance the Carscallen Extension property.

Rob Edwards, Affinity CEO & President stated: “As the Carscallen Extension property immediately adjoins the Melkior-Kirkland Lake Carscallen project to the north, and also clearly appears to be on trend with the gold system that Melkior has defined to date and believes to be open for expansion, we believe the Carscallen Extension to be the most prospective property within the immediate region associated with this exciting partnership project. We very much appreciate the flexibility afforded us by the holders of the Timmins West and Carscallen Extension properties and for their confidence in Affinity in allowing us to secure the Carscallen Extension property and to shift focus and capitalize on the recent Kirkland Lake developments and associated potential.”

The terms of the Carscallen Extension option agreement are as follows:

Granting of 70% option:

In order for Affinity to earn a 70% interest in the property, within 6 months of Exchange approval of the option agreement:

1) Affinity shall pay $1,539.63 in outstanding assay fees and shall receive assays for the bottom section of a previously drilled hole.
2) Pay the optionor $30,000 in cash.
3) Complete a minimum of 1,300 meters of drilling.
4) Grant to the optionor a 1% NSR along with an initial $25,000 advance royalty payment.

Granting of additional 10% (80% option):

In order for Affinity to earn an 80% interest in the property:

1) Within 30 days of receipt of assays from the 1,300m drilling above, issue 400,000 shares of Affinity to the optionor.
2) Complete an additional 6,000 meters of drilling on the property within 4 months of completing the 70% option.

Granting of additional 10% (90% option):

In order for Affinity to earn a 90% interest in the property:

1) Upon completing the 80% earn in and electing to proceed with the 90% earn in, issue 500,000 Affinity warrants to the optionor.
2) Complete an additional 4,000 meters of drilling on the property within 15 months of Exchange approval of the option agreement.

Granting of additional 10% (100% option):

In order for Affinity to earn a 100% interest in the property:

1) Pay $5,000,000 to the optionor.

Affinity shall pay advance royalty payments of $25,000 every 6 months to an aggregate total of $250,000 to maintain the property in good standing.

Affinity will also deliver a Preliminary Economic Assessment within 5 years of executing the option agreement or the property will revert back to the optionor.

The optionor will hold a 1% NSR on the property with no buy back provision.

All shares or warrants issued under this agreement will be subject to a statutory 4 month hold period. This agreement is subject to approval by the TSX Venture Exchange.

Qualified Person

The qualified person for the Carscallen Extension Project for the purposes of National Instrument 43-101 is Kevin Montgomery, P.Geo. He has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.

About Affinity Metals

Affinity is focused on the acquisition, exploration and development of strategic metal deposits within North America. Affinity is following a hybrid approach of combining the advancement of strategic assets along with following a Project Generator model.

In addition to the recently acquired Carscallen Extension property, Affinity presently holds two properties in British Columbia as well as four additional properties located near Timmins, Ontario.

A drill program is presently underway on the Regal property located near Revelstoke, BC in the northern end of the prolific Kootenay Arc. Over 3,000m of drilling has been completed to date.

On behalf of the Board of Directors

Robert Edwards, CEO and Director of Affinity Metals Corp.

The Company can be contacted at: [email protected]

Information relating to the Company is available at: www.affinity-metals.com

• The original program has been expanded with the present amount drilled now exceeding 3,000 meters.
• A total of 15 holes have been completed to date in 2020 and drilling is ongoing.
  

Vancouver, B.C. – Affinity Metals Corp. (TSX-V:AFF)”) (“Affinity”) (“the Corporation”) is pleased to announce that it has expanded its 2020 drill program at its flagship Regal Project encompassing 8,800 hectares of the northern end of the prolific Kootenay Arc approximately 25 km northeast of Revelstoke, British Columbia, Canada. 

Along with geological mapping and associated geochemical sampling, the original 2020 drill program included up to 2,000 meters of diamond drilling. The original program has been expanded with the present amount drilled now exceeding 3,000 meters. A total of 15 holes have been completed to date in 2020 and drilling is ongoing.

Shares for Services – Online Marketing

Further to its news release of September 17, 2019, in which the Company disclosed a shares for services agreement it had entered into with Agoracom dated September 13, 2019, the Company advises that to date it has issued to Agoracom 96,000 common shares having a hold period expiring on January 16, 2020.  Under the terms of the agreement, the Company is required to issue an additional 297,295 common shares to Agoracom, which it proposes to do upon receipt of TSXV approval.  When issued, the 297,295 shares will have a hold period expiring 4 months and one day after their date of issuance in accordance with applicable securities laws and the policies of the TSXV. Subject to approval of the TSXV, the Company intends to issue common shares to Agoracom for the services provided.  The number of shares issuable and the share price will be determined at the market price of the Company’s common shares at the time the quarterly payments were due, in compliance with the policies of the TSXV. Under the initial 2019 agreement, services would have been terminated September 15, 2020 however on September 11, 2020, Agoracom provided an amended agreement for services that now extends the original agreement to January 15, 2021.  No new shares will be issued as a result of the extension. 

Shares for Services – Business Advisory Services

The Company is also pleased to announce that it has entered into a shares for services agreement with Herbert Strauss for providing financial and strategic business planning and international market advice. Mr. Strauss has an extensive background in the German speaking European market specific to arranging corporate partnerships, international expansion and providing recommendations related to market reach and industry contacts.  

The agreement was effective on September 1, 2020 and will continue until July 31, 2021.  In consideration of the services provided, the Company has agreed to pay Mr. Strauss the following fees:

1. A cash payment of $3,900 upon signing of the agreement and;
2. 240,00 common shares of the Company due in quarterly instalments of 60,000 common shares at the end of each three month period starting on the effective date of the agreement.

When issued, the 240,000 shares will have a hold period expiring 4 months and one day after their date of issuance in accordance with applicable securities laws and the policies of the TSXV. The number of shares issuable and the share price will be determined at the market price of the Company’s common shares at the time the quarterly payments are due, in compliance with the policies of the TSXV. The agreement has been approved by the TSXV.

About Affinity Metals Affinity is focused on the acquisition, exploration and development of strategic metal deposits within North America. Affinity is following a hybrid approach of combining the advancement of strategic assets along with following a Project Generator model. 

Affinity presently holds two properties in British Columbia as well as five properties located near Timmins, Ontario. 

On behalf of the Board of Directors 

Robert Edwards, CEO and Director of Affinity Metals Corp.

The Corporation can be contacted at: [email protected]

Information relating to the Corporation is available at: www.affinity-metals.com