VANCOUVER, Canada (AP) — Bitterroot Resources Ltd.’s U.S. subsidiary has entered into a mining lease, with an option to purchase, with Geological Services, Inc. on the 31-claim Coyote Sinter gold and silver project in Elko County.
Located on the southern edge of the Jerritt Canyon Mining District, the Coyote Sinter property hosts a fully-preserved low sulfidation epithermal (hot spring) system, with outcropping silica sinter, which defines the original paleosurface.
“The Coyote Sinter property hosts a highly prospective, well-preserved epithermal system, which has never been tested at the appropriate levels for bonanza-grade gold (and) silver mineralization,” Bitterroot technical advisor Rick Streiff said.
The property Geochemical surveys of soil and rock chips across the sinter area host highly anomalous antimony, mercury, gold and arsenic. Four shallow angle holes drilled by Chevron Minerals in the 1980’s confirmed the favorable epithermal geochemical signature. The Chevron holes were not drilled deep enough to test the high-grade precious metals-bearing zones at the optimal depth, which is estimated to be 200 to 400 meters below the current surface.
The Coyote Sinter claims are located on Federal (BLM-administered) lands. Initial low-cost field work will include an expanded soil survey, alteration mapping and ground geophysics to define further targets beneath the outcropping sinter. Core drilling to test below the historic Chevron drill holes is planned for the fall of 2020.
In order to maintain the lease and option to purchase, and subject to the approval of the TSX Venture Exchange, Bitterroot is required to make the following advance minimum royalty payments and share issuances to GSI;
- $10,000 (paid) and the issuance of 100,000 common shares in the capital of Bitterroot within 10 days of the TSX-V Acceptance Date;
- $10,000 on the 6-month anniversary of the Acceptance Date;
- $30,000 and the issuance of 100,000 common shares in the capital of Bitterroot on or before the first annual anniversary of the Acceptance Date;
- $40,000 and the issuance of 50,000 common shares in the capital of Bitterroot on or before the second annual anniversary of the Acceptance Date;
- $60,000 and the issuance of 50,000 common shares in the capital of Bitterroot on or before the third annual anniversary of the Acceptance Date;
- $100,000 on or before the fourth annual anniversary of the Acceptance Date;
- $125,000 on or before the fifth annual anniversary of the Acceptance Date;
- $125,000 on or before each annual anniversary of the Acceptance Date after the fifth anniversary as long as the Agreement remains in effect, adjusted for inflation from that date.
At any time while the Agreement remains in effect, Bitterroot has the exclusive right and option to purchase the Coyote Sinter property from GSI by paying $2 million, less the sum of all AMR payments already paid to GSI, up to the date of exercise.
GSI will retain a two-percent net smelter returns royalty, less previous AMR payments, on the Coyote sinter property and on any Bitterroot-located federal mining claims within a one-mile area of interest. Bitterroot has the option to purchase half of the 2 percent NSR for $2 million. GSI will also retain a one- percent NSR royalty on any mineral rights acquired from 3rd parties within the AOI. Bitterroot has the option to purchase half of this 1-percent NSR for $500,000.
The royalty purchase options are exercisable at any time prior to commercial production.
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