Happy Cat Gold Property Acquisition

VANCOUVER - Black Mammoth Metals Corporation reported that Antelope Creek Gold Corporation, a wholly owned subsidiary of Black Mammoth Metals Corporation, has entered into an Assignment and Assumption Agreement with IDA Gold Corporation pursuant to which IDA has assigned, and Antelope Creek Gold has assumed, 100% of the rights, title and obligations of the Assignee for the acquisition of the Happy Cat Gold Property located in central Nevada. The acquisition is subject to regulatory approval.

The Happy Cat Property is located in undulating low-lying country in the central Shoshone Range, with year round road access 15 miles NW of Austin, Lander County and consists of 13 Bureau of Land Management (BLM) mining claims totaling approximately 267.8 acres (108.4 hectares). There is an active Notice Level exploration permit issued by the BLM Battle Mountain District Office and a reclamation bond in place. Past exploration carried out by IDA and a prior operator, including RC drilling, trenching, auger drilling and sampling, have identified two styles of gold mineralization on the Property. Both styles of mineralization are of interest.

The first style of gold mineralization is widespread and occurs in an unconformity exposed at the surface that lies at the basel contact of Tertiary volcanic rocks within a 600-meter diameter circular area. Gold anomalies in the unconformity horizon have been defined by RC drilling, trenching, auger drilling, and soil sampling methods. Assay results from auger samples collected within the circular area show anomalous gold values.

Preliminary metallurgical work, including a 240 kg and a 287 kg sample taken by IDA in 2014 from the near surface anomaly and tested by a third party engineering firm using an iCON gravity concentrator and a Deister concentrating table, suggests that the near surface gold anomaly is amenable to gravity separation with no crushing required and with no chemicals required. iCON gravity concentrators use a centrifugal field to concentrate all heavy minerals including very fine free gold.

This testing recovered visible particulate gold along with fine gold down to 21.2 microns and suggests the near surface materials may exhibit a nugget effect making estimation of accurate grades & recovery rates with small volume samples problematic.

"The Company intends to sample and test utilizing larger volume samples and metallic screening analysis while further defining the anomaly in an effort to generate reliable data sufficient for reporting purposes as there may be an opportunity to conduct a bulk sampling operation.," said, Dustin Henderson, President and CEO. “Pursuant to recently revised Nevada Statutes, through the Division of Environmental Protection, permitting efforts for bulk sampling are greatly reduced for operations that don't require the crushing of ore and don't require the use of chemicals except for any approved flocculants. No clear source of the gold anomaly has been identified, but may be similar to other recently discovered mineralized areas at Tertiary unconformities elsewhere in the Great Basin such as Liberty Gold's Goldstrike Deposit where Carlin type mineralizing fluids traveled along the unconformity contact. Gold mineralized scree samples taken from within the gold anomaly and the west dip of the anomaly, suggests that the source of the gold may be close-by, and possibly under a fringe of barren gravel and colluvium to the west. Further exploration, which may include an aeromagnetic survey, grid drilling and trenching, is a priority. The unconformity in this area marks the boundary between the Tertiary volcanic rocks which are composed of thick andesite flows and a mix of volcanoclastic flows, with lessor shale, argillites, cherts and tuffaceous debris flow horizons.  Underlying the unconformity are Orovician sedimentary rocks composed siltstone, quartzite, cherts and minor limestone which form the lower plate of the unconformity.  The sedimentary package also includes minor amounts of intermediate composition volcanic rocks. The volcanic rocks are often carbonate flooded and often altered to limonitic clay.

The gold mineralization in the unconformity was likely deposited concurrently with the formation of the unconformity as gold is found in the tuffaceous material that overlies the Ordovician sedimentary rock package. The gold occurs in clayey grey-brown soil with a high heavy mineral content. The second style of gold mineralization was noted in historic RC drill holes on the Property, but assay certificates have not been located for verification of assay results. The mineralization in these holes is As, Sb +/- Hg rich and related to structurally controlled zones of limonitic alteration in NW trending SW dipping Vinini Formation. No lower plate rocks are exposed on the Property, nor intersected in drilling, but they outcrop on the Campbell Trust Claims, one mile to the east. The package of rocks and alteration in the anomaly area is similar to that at the Carlin type Tempo Prospect (unverified, non NI 43-101 compliant 100,000 oz Au resource) 2.3 miles SE.”