|Toronto, Canada (February 27, 2020) - Mammoth Resources Corp. (TSX-V: MTH), (the "Company", or "Mammoth") is pleased to announce that Centerra Gold Inc. ("Centerra") has extended its option into 2020 to explore Mammoth's Tenoriba precious metal, gold-silver property located in the prolific Sierra Madre precious metal belt in southwestern Chihuahua State, Mexico under the terms of the Agreement previously announced on December 20, 2018. Under the terms of the Agreement, Centerra has the option to acquire up to a 70% interest in the Tenoriba property by, among other thing incurring exploration expenditures of US$9 million over a 7-year period. In order to keep the Agreement effective, Centerra is obligated to, among other things, incur expenditures totalling US$1.5 million prior the end of 2020, of which approximately US$500,000 was reported spent in 2019.
Centerra is expecting to recommence exploration activities on Tenoriba in March with plans for the first half 2020 to include detailed structural, lithologic and alteration mapping and sampling at Tenoriba while it advances a drill permit application. Second half 2020 exploration activities are expected to be defined following compilation of the results from work accomplished during the first half of the year and receipt of permits. Mammoth intends to communicate results from this work once these results become available.
Thomas Atkins, President and CEO of Mammoth commented on activities at Tenoriba, stating: "Mammoth believes it's a significant vote of confidence on the mineral potential at Tenoriba that Centerra, with its experience in geological systems similar to those which host gold at Tenoriba, has elected to continue with the Tenoriba option in 2020. At this time Centerra is establishing logistics for geological, community relations and security personnel to return to the project and is expected to recommence exploration activities in the near future. Mammoth looks forward to reporting on results from these activities as they advance."
In other news, as of early 2020 Mammoth made its final option payment to the property owner of three of the four mineral concessions that comprise the Tenoriba property concessions (the fourth concession was registered by Mammoth and is 100 percent owned by Mammoth). As a result of this payment Mammoth is now a 100 percent owner of all four of the Tenoriba concessions, the three optioned concessions still subject to a 2 percent net smelter royalty which can be purchased for US$1.5 million at anytime up to two years from the commencement of commercial production from these three concessions.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the company's website at: www.mammothresources.ca., or contact Thomas Atkins, President and CEO at: 416 509-4326.
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Forward Looking Information: This news release may contain or refer to forward-looking information including exploration plans for 2020 on the property. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein. Please refer to the Company's website at the following link: http://www.mammothresources.ca/s/FAQ.asp to review the Company's complete forward looking statement.