Iceland Exploration Yields Bonanza Gold Grades Discovery Prompting the Spin-Out of Icelandic Holdings

MONTREAL, QC / ACCESSWIRE / December 7, 2023 / St-Georges Eco-Mining Corp. (CSE:SX)(OTCQB:SXOOF)(FSE:85G1) is pleased to announce that its wholly-owned subsidiary, Iceland Resources EHF, has acquired surface and minerals rights from private landowners on the Elbow Creek Project. Results from work done by the Company on behalf of the landowners are now available.

Pursuant to the terms of the Agreement, the Company has granted the landowners a 2.5% NSR royalties, of which 1.3% can be bought back for US$1.3M within 90 days of completing a final feasibility study on the Project. Any additional payments to landowners prior to production will be applied against future royalty payments, except for the partial buyback option. Additional requirements related to access to the Project will require the Company to expense US$50,000 within 60 days.

Spin-Out of Icelandic Holdings

The Company also announces that its board of directors has approved, in principle, a strategic reorganization of the Company's assets, pursuant to which the Company would proceed with a restructuring transaction (the "Spin-Out"), whereby it would spin out the common shares of its subsidiary St-Georges Iceland Ltd. (the "SX Iceland Shares"), which owns 100% of Iceland Resources EHF, to shareholders of the Company at a ratio yet to be determined, with the intent of listing St-Georges Iceland Ltd. on the Canadian Securities Exchange (the "CSE"). The completion of the Spin-Out will allow the Company to continue as a Canadian-focused company.

The decision to undertake the Spin-Out was prompted by the Company's recent success in demonstrating, in addition to the Thor Project's high level of prospectivity for gold, the broad untested potential for significant gold mineralization within the Elbow Creek Project. It is the Company's viewpoint that the Spin-Out is the most effective way to unlock the value of the Icelandic assets that relate to their gold potential.

The Spin-Out remains subject to the continued consideration and discretion of the Company's management and board. It is currently anticipated that the Spin-Out will be effected by way of a plan of arrangement, and the Company will retain up to 19.9% of the SX Iceland Shares issued and outstanding at closing. However, the final terms of the Spin-Out and determination to proceed remain subject to further tax and securities considerations, and the Company expects to provide a further update to shareholders over the ensuing fiscal quarters.

Elbow Creek Project Results

With significant gold and silver values in multiple zones, the Elbow Creek Project covers an area of 7,630 hectares (approximately 18,850 acres). The Project has had no previous prospecting or sampling on several of the mineralized zones identified by the Company's geologists.

Mineralization is low-sulfidation epithermal veining and brecciation hosted in basalt flows and rhyolite dikes. The mineralization identified has multiple samples assaying from 0.1 to 137 g/t gold and 0.1 to 1,515 g/t silver (Table 1) from float and sub-cropping alteration. Individual zones have been mapped intermittently over 800 meters and 1,700 meters in length and 1 to 6 meters in width at surface.

Table 1: Rock chip samples from outcrop and rock grab samples of float

Although one area had previously been defined as an area of interest in the 1990s, the Company's geologists, led by our exploration geologist, Peter Grieve, further prospected the entire area and identified additional previously unrecognized and unsampled areas of alteration and mineralization over the last two field seasons. This work included panning streams for gold and following "float trains" of altered rock to the source.

The 2023 field season used similar prospecting methods, which led to two additional areas of alteration with veins and breccia fragments containing significant values in gold and silver. In concert with values obtained from panning gold downstream of sub-cropping alteration, pXRF results, and petrographic analysis (Tables 2 and 3), the assay results suggest significant potential for bonanza-type gold mineralization as described below. Trace elements generally observed in low sulfidation systems in other parts of the world are generally depressed in Icelandic systems. Arsenic, antimony, and mercury are considered to be mostly background values, which bodes well for a relatively clean mining scenario if one develops. On the other hand, tellurium is highly anomalous; it could become a significant byproduct as a critical mineral if values remain high throughout and it can be recovered economically.

It should be noted that the results from the pXRF are spot values that can generally be significantly higher than a whole rock assay. Furthermore, most of the samples tested by the pXRF are from brecciated material with clasts of highly mineralized material cemented with less mineralized quartz. Although the pXRF results are partially corroborated by assays of the entire sample in Table 2, there are no corroborative assay results for Table 3.

Table 2: pXRF results from field XRF compared to laboratory assays of whole rock.