VANCOUVER — Trifecta Gold Ltd. signed a letter of intent to option the Yuge Property, a high-grade gold prospect in northern Nevada, from Silver Range Resources Ltd., the company announced this week.

The Yuge Property was discovered by Silver Range through data mining a newly acquired proprietary database of exploration data collected by major and junior mining companies operating in Nevada and Utah from the 1970s through to the early 2000s.

“We are very excited to take advantage of this opportunity,” stated Dylan Wallinger, president and CEO of Trifecta, a Canadian precious metal exploration company. “We believe that the Yuge has tremendous potential, and we look forward to providing shareholders with consistent news flow as we advance a project in a southern jurisdiction that complements our northern prospects.”

The Yuge Property is in Humboldt County, south of Denio in the Varyville Mining District. The property covers the Columbia and Juanita mines, which produced on a small scale between 1870 and 1937. The most recent reported production was 2,350 tons of oxide ore in 1936-37 from the Columbia Mine.

Gold on the Yuge Property occurs with arsenopyrite in mesothermal quartz veins and adjacent wall rock. These occur in subparallel shear zones up to 60 meters wide and over 1,200 meters long.

Sampling

Selected surface grab samples collected on the property by the Nevada Bureau of Mines and Geology returned assays up to 15 grams per ton of gold and similar samples collected by Homestake Mining Co. assayed up to 53.0 grams per ton of gold. The highest gold grades were reported from near-surface oxidized vein material where documented run-of-mine sorted ore assayed greater than 34 grams per ton of gold and reported sampling of a crown pillar returned 2.4 meters at 16.8 grams per ton of gold, including 0.6 meters at 50.7 grams per ton of gold.

Sulphide mineralization occurs at depths greater than 30 meters with arsenopyrite-rich material reportedly assaying greater than 17.4 grams per ton of gold. A reported true-width drill intersection in this material at 49 meters depth returned 3.3 meters at 9.70 grams per ton of gold.

Historical drilling intersected gold mineralization or open stopes in all holes reported but only to a maximum depth of 100 meters. Trifecta believes there is considerable potential to discover similar mineralization at depth given the mesothermal character of the veins and shears and the considerable depth extent of gold mineralization in deposits of this class.

Trifecta plans to conduct geological mapping and sampling together with a geophysical program incorporating total magnetic field, electromagnetic and induced polarization/resistivity surveys to define the mineralization and its structural architecture. This work is anticipated to take place in April and May ahead of permitting and a systematic drill program later in the year to conclusively test this prospect.

Transaction Terms

On Feb. 27, Trifecta signed a letter of intent with Silver Range to earn up to a 75 percent interest in the Yuge Property. Trifecta can earn an initial 51 percent interest in the Yuge Property by:

• Reimbursing staking and recording costs of approximately $7,100 (all values in U.S. dollars);

• Completing a $1 million work program on or before Feb. 28, 2021;

• Paying Silver Range $250,000 in cash and/or shares at Trifecta’s election on or before Feb. 28, 2021;

• Granting Silver Range a 1 percent net smelter return; and

• Granting Silver Range a success fee of $1 per ounce, payable upon completion of a Preliminary Feasibility Study based on measured and indicated resources greater than 500,000 ounces.

• Silver Range will act as the operator for the first phase of exploration and thereafter at Trifecta’s election in return for a 10 percent management fee.

Trifecta can earn an additional 24 percent interest in the Yuge Property by:

• Completing an additional $2 million work program on or before Feb. 28, 2023;

• Paying Silver Range $500,000 in cash and/or shares at Trifecta’s election on or before Feb. 28, 2023; and

• Granting Silver Range an additional 1 percent net smelter return, which can be purchased by Trifecta for $1 million at any time prior to production.

• Once fully vested, Trifecta and Silver Range would enter into a joint venture agreement to continue exploration of the property. Should either party’s interest be diluted to below 10 percent, it would be converted into a 1 percent net smelter return, half of which could be purchased for $1 million.