2024-12-20 18:42 ET – News Release

Mr. Richard Masson reports

BOREAL GOLD ANNOUNCES PRIVATE PLACEMENT FOR 510,000 SHARES

Boreal Gold Inc. plans to raise up to $153,000 through a non-brokered private placement financing up to a maximum offering amount of $153,000. The private placement will be composed of 340,000 flow-through shares at a price of 30 cents per flow-through shares, representing proceeds of $102,000, and 170,000 units at a price of 30 cents per unit, representing proceeds of $51,000, for an aggregate total raised of $153,000. The units shall consist of, and separate immediately upon closing into, one common share of the issuer and one warrant, each entitling the holder to purchase one common share at a purchase price of 30 cents per warrant for a period of 24 months following the date of closing.

The offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals. All securities to be issued under the offering will be subject to a four-month statutory hold period in Canada.

The funds will be utilized for general working capital purposes and continuing work on the Fay Lake and Melgurd Lake properties.

Properties

The Fay Lake property consists of 17 contiguous claims comprising of 2,719 hectares and lies 25 kilometres northeast of Flin Flon, Man. It is contiguous to the south with Hudbay Minerals’ Vamp Lake copper-zinc-gold volcanogenic massive sulphide property and also contiguous to the northeast, with the former Puffy Lake gold mine. Fay Lake contains approximately five km of mapped VMS horizons similar to Vamp Lake. Separately, west of the rail line, a nine-kilometre shear structure, currently known to contain similar mineralization as the Puffy Lake gold deposit, has returned samples assaying up to 14.33 grams per tonne gold.

The Melgurd property consisting of 11 mineral claims totalling 7,411 hectares lies northwest of Flin Flon, Man., just north of the Shotts Lake copper-zinc VMS deposit in Saskatchewan. Boreal Gold’s airborne magnetic and electromagnetic survey shows both EM conductors and gradient magnetic trends of the Shott Lake horizon continuing north onto the Melgurd property in the area of a felsic volcanic package. Prospecting and mapping in the summer and fall of 2023 and 2024 have outlined an area of significant garnet and anthophyllite alteration. Locally, this alteration is associated with gossans.

Going forward based on recent work on the Fay Lake (in Manitoba) and Melgurd Lake (in Saskatchewan) properties

Planned drilling

In 2025, drill holes are being planned for both Fay Lake and Melgurd Lake, which will be undertaken subject to a planned brokerage financing in the new year. This will follow up airborne targets, which have been verified by detailed analysis and ground geophysics, as well as geological mapping, sampling and prospecting (2023 and 2024). Further ground geophysics are planned for the western portion of the Fay Lake grid, not previously covered, prior to drilling.

Previous work

Historic work (Fay Lake)

The attraction of the property has been the high gold content of the Redwin massive sulphides. During 1932, the Fay Lake mining syndicate delivered three shipments of sulphide ore to Hudson Bay Mining and Smelting from the shaft area and nearby trenches. The three shipments of ore are as follows (letter from A. Kauffman, chief geologist HBM&S, 1949). HBED was not interested because of the low copper values, and gold was then only $25 per ounce.

  • Nov. 24, 1932: 42.6 tonnes (14.6 grams per tonne gold; 50 g/t silver; 0.20 per cent copper);
  • Jan. 12, 1933: 40.0 tonnes (15.7 g/t Au; 7.9 g/t Ag; 0.65 per cent Cu);
  • Jan. 25, 1933: 147 tonnes (4.5 g/t Au; 4.5 g/t Ag; 0.51 per cent Cu).

During this period, the syndicate excavated numerous trenches and two shafts, and carried out a drill program in the main showing area; however, results from this program are not recorded. Various drill programs ensued along the extent of the five-kilometre horizon verified massive sulphides.

Recent work by Boreal Gold

In 2022, a 437.4-line-kilometre TDEM (time domain electromagnetic) airborne survey was flown over the entire Fay Lake property and a 757.7-line-kilometre TDEM airborne survey was flown over the Melgurd Lake property. In the summer/fall of 2023 and 2024, grids were cut, chained, prospected, sampled and mapped in geological detail over both properties. In 2023, Petros Eikon was retained for geophysical interpretation of the airborne surveys over both the Fay Lake and Melgurd Lake properties. This included analysis, modelling and drill hole planning to intersect prospective airborne anomalies. In 2023, Boreal Gold undertook 23.15 km of a ground magnetometer and a horizontal loop, electromagnetic survey with two different cable lengths (150-metre and 250-metre lengths) over the eastern (Redwin grid) VMS horizon of the Fay Lake property. These ground geophysical surveys, carried out by Sigfrid and Associates, better defined the airborne conductors, and their dip, as well as the continuity of the massive sulphide horizon (magnetic) with detailed ground magnetic surveys. John Pearson, MSc, PGeo, FGC, FEC (honours) completed on Sept. 4, 2024, National Instrument 43-101 work on both the Fay Lake and Melgurd properties.

Use of proceeds

Boreal Gold intends to use the proceeds from this financing to perform ground geophysical surveys over the western portion of the Fay Lake grid (not previously covered) along with a portion of the Melgurd Lake grid to cover two to three prospective airborne conductors. The proceeds will also be used for assaying the rock samples collected on both the Fay Lake property and the Melgurd Lake property this past summer/fall and completing the mapping, prospecting and sampling reports on both properties and for corporate purposes.

Qualified person

Stephen L. Masson, MSc, PGeo, is the qualified person as defined by NI 43-101 for these projects, and has reviewed and approved the technical disclosure contained in this news release.

About Boreal Gold Inc.

Boreal Gold is a Canadian junior mineral exploration company with a specific focus on mineral properties in northwestern Manitoba and northeastern Saskatchewan, Canada. All of the issuer’s properties are currently at the exploration stage. The issuer has assembled a portfolio of base metal and precious metal prospects in strategic locations in the provinces of Manitoba and Saskatchewan.

We seek Safe Harbor.

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