GT Resources' $1.8 Million Private Placement for Canalask Nickel-Copper Project Drilling Program

• GT Resources announces $1.8M flow-through private placement to fund drilling at Canalask nickel-copper project in Yukon
• Drilling plans to test EM plate by drilling up to 2,000 meters, expand on historical 400,000 tonne resource estimate grading 1.35% nickel
• Company had $10.4M cash balance as of March 31, 2024, financing preserves "hard dollar" treasury
• Canalask project dates back to 1950s with drilling, partial development, and high-grade nickel flotation test work
• Opportunity for investors as the company aims to define and expand high-grade nickel-copper resource in mining-friendly Yukon jurisdiction

GT Resources Inc. (TSXV:GT) is a Toronto-based mineral exploration company focused on advancing its flagship Canalask nickel-copper project located in the mining-friendly jurisdiction of Yukon, Canada. The company's experienced management team has a track record of success in mineral exploration, project development, and capital markets.

GT Resources' Canalask property covers approximately 3,400 hectares and hosts a historical resource estimate of 400,000 tonnes grading 1.35% nickel. The project has seen exploration dating back to the 1950s, including drilling, partial development, and metallurgical test work that produced high-grade nickel concentrates up to 19.7%.

$1.8 Million Flow-Through Financing

GT Resources has announced a non-brokered private placement to raise gross proceeds of up to $1.8 million by issuing up to 26,092,629 flow-through common shares at a price of $0.069 per share. The financing has been arranged at a significant premium to the company's 30-day volume-weighted average price (VWAP).

The flow-through structure will allow GT Resources to maximize exploration dollars put into the ground at Canalask while preserving its "hard dollar" treasury, which stood at a healthy $10.4 million as of March 31, 2024. Proceeds will fund the company's 2024 exploration program at Canalask. The private placement is expected to close on or about June 15, 2024 and is subject to customary closing conditions, including TSX Venture Exchange approval. Finders' fees may be paid under TSXV policies.

2024 Exploration Plans

GT Resources is gearing up for a busy 2024 field season at Canalask starting in July. The company has budgeted $1.8 million for an initial drill program of up to 2,000 meters to test an electromagnetic (EM) plate defined during the 2023 exploration season.

The drilling will be followed up with borehole EM surveys to delineate zones of massive nickel-copper sulphide mineralization further. GT Resources' primary objective is to expand upon the historical resource of 400,000 tonnes grading 1.35% nickel.

It is important to note that while the historical estimate did not include copper grades, the Canalask property is known to host significant copper mineralization. Massive sulphide samples collected by GT Resources near the historic Footwall deposit in 2021 returned assays of up to 6.1% copper, 0.15% nickel, 0.06% cobalt, 1.6 g/t gold and 28.1 g/t silver, demonstrating the polymetallic nature of the system.

Promising Geology

The Canalask property is in a fertile Whitehorse Mining District geological environment. Nickel-copper sulphide mineralization is associated with mafic to ultramafic intrusions, a deposit model known to host some of the world's most significant nickel sulphide camps, such as Voisey's Bay in Labrador and Norilsk in Russia.

At Canalask, mineralization occurs within the Canalask Intrusive Complex, a Cretaceous-aged mafic to ultramafic body that intrudes older sedimentary rocks of the Kluane Schist. The main zone of known mineralization, the Footwall zone, occurs near the base of the intrusion and has been traced over a strike length of several hundred meters.

Mineralization is disseminated to massive nickel-copper sulphides, primarily pyrrhotite and chalcopyrite, with elevated concentrations of cobalt, gold, silver, and PGEs. The high-grade nature of the mineralization is evidenced by the results of historical metallurgical test work, which produced concentrate grades up to 19.7% nickel.

The presence of strongly conductive EM plates coincident with the known zones of mineralization suggests the potential for additional blind massive sulphide discoveries at depth and along strike. GT Resources' upcoming drill campaign will focus on this.

Significant Upside Potential

GT Resources represents an attractive investment opportunity for those seeking exposure to the high-growth battery metals sector. Nickel and copper are key components in the lithium-ion batteries that power electric vehicles, and demand is expected to soar in the coming years as the world transitions to a low-carbon economy.

Given the limited modern exploration, the Canalask project offers significant upside potential for resource growth. The property hosts a historical resource of 400,000 tonnes grading 1.35% nickel. However, this estimate does not include copper or other byproduct metals and is based on drilling from the 1950s-1960s. There is excellent potential to expand the known zones of mineralization both laterally and at depth and make new grassroots discoveries across the largely unexplored 3,400-hectare land package. The recent identification of strong EM conductors coincident with the Footwall zone highlights the exploration upside and potential for discovering additional massive sulphide lenses.

GT Resources' strong technical team, led by President and CEO Derrick Weyrauch, has a proven track record of success in advancing early-stage projects through discovery and delineation. The company is well-funded to execute its exploration plans, with over $10 million in working capital as of March 31, 2024.

The Yukon: A Top Mining Jurisdiction

The Fraser Institute consistently ranks the Yukon as one of the world's top mining jurisdictions. It is known for its mineral potential, streamlined permitting process, and supportive government policies. With a long mining history dating back to the famous Klondike Gold Rush, the Yukon offers a stable and mining-friendly environment for companies.

Some of the world's largest mining companies are active in the Yukon, drawn by the potential for large-scale discoveries in under-explored terrain. Notable regional projects include Newmont's Coffee Gold project, Rio Tinto and Astorius Resources' Rackla project, and Western Copper and Gold's Casino project. The Yukon government has made significant investments in infrastructure in recent years, including upgrades to roads and power lines, to support the growth of the mining industry. This has helped to reduce costs and improve access for companies operating in the region.

GT Resources represents a compelling investment opportunity for those seeking exposure to the high-growth battery metals sector. The company's flagship Canalask nickel-copper project in the Yukon offers significant upside potential for resource growth and discoveries, anchored by a historical resource of 400,000 tonnes grading 1.35% nickel.

With a strong treasury, a proven management team, and a clear path forward for exploration success, GT Resources is well-positioned to create value for shareholders in the near term. The company's commitment to sustainability and strong partnerships with First Nations and local communities sets it apart as a responsible operator in a Tier 1 mining jurisdiction.

Investors looking for exposure to the battery metals space should watch GT Resources as it advances the Canalask project through exploration and development. With drilling set to commence in July 2024, the company is poised for an exciting year of news flow and potential catalysts.