The Ortona Property

The Ortona property is located in the Guillet township and comprises 15 claims covering an area of 272 hectares. It sits on the north west border of the previous Belleterre Mine mining concession and 3 kilometres north west of the Guillet property, to which Intact Gold has an option to acquire 100%.

The main known showing on this property consists of a gold-bearing vein with a maximum width of 2.1 metres, located within a shear zone. Historic channel samples along a 21 meter long section of this vein returned gold grades ranging from 5.88 to 48.98 g/t Au (RP190-11).

Additional channel samples along the vein returned gold grades between 2.18 to 78.9 g/t Au on widths between 0.3 metre and 0.7 metre (GM 10617).

The Belleterre Extreme-East property

Comprising 7 mineral claims, the property is located 3 km east of Belleterre and 60 km east of Ville-Marie, Temiscamingue, Quebec, adjacent to Intact Gold’s Guillet property.

Previously, resource estimate was performed in order to evaluate the gold potential of this project. The results were an estimated 21,178 tons in the indicated category, grading at 6.37 g/t Au and 33,465 tons in the inferred category grading 5.47 g/t Au, for a total (indicated + inferred) of 54,644 tons of ore grading 5.77 g/t (0.17 Oz/t) Au (from 43-101 Technical Report by Mr. Donald Théberge, Ing., M.B.A.. in May 2009).

Additionally, more recent work on the property has identified a significant gold bearing structural corridor. This is marked by the presence of quartz-carbonate veins in a fractured fault zone, with mineralization similar to the Abitibi orogenic-type deposits, such as the Sigma and Lamaque mines.

The most significant results included a channel sample with 32.23 g/t Au over 2 m, and 21.73 g/t Au over 0.91 m intersected in drilling. (Rapport Géologique – Programme de forages 2002, R. Roy P.Geo, Janvier 2003).

 

Lying south-east of, and in between the Ortona and Belleterre Extreme-East properties, JAG Mines Ltd’s Belleterre property has identified similarly mineralized zones associated with weathered intrusive porphyries and shear zones. Results from grab samples have been up to 27.7 g/t Au and 37.0 g/t Ag.

Closing of the Agreement is subject to a number of conditions, including the receipt of the approval of the TSX Venture Exchange (the "TSX-V").

Anthony Jackson of Intact Gold comments: "Acquiring both Ortona and Belletere Extreme East is a positive and exciting step for the Company. The properties are contiguous to our recent Guillet property acquisition and gives us a greater presence in this exciting area".

Agreement Terms

Intact Gold will have the option to acquire 100% of the Ortona and Belletere Extreme East Property in consideration for:

The Properties are subject to a 0.5% net smelter royalty (the "Royalty") on future gold production which includes advance royalty payments of $25,000 annually on Dec. 31, beginning in 2020 to Caprock.

The Company has the option at any time to purchase 0.5% of the Royalty on payment of $500,000 to Caprock. The original vendors of the Ortona property will retain a 1% NSR Royalty on the Properties.

Intact Gold will have the right to purchase the 1% for $1.0 million. The original vendors of the Belleterre Extreme East will retain a 3.5%NSR. Intact gold will have the right to purchase the first 2% for $1 million, and the remaining 1.5% for $750,000 at any time.