Crocan to Acquire Silver Range Resources’ Gold Chief Property, Nevada
Silver Range Resources has optioned its Gold Chief Property, located in Lincoln County, Nevada, to Crocan Capital.
The Gold Chief Property is located 9 kilometers north of Caliente in Lincoln County, Nevada, and covers the past-producing Gold Chief Mine and a peripheral prospect.
The Gold Chief Mine reportedly produced 5224 t @ 6.18 g/t gold from 1913 to 1914 and shipped 189 T @ 1.1 OPT gold-equivalent during high-grading operations in the late 1930’s. In 2016, Silver Range sampled the back of a collapsed stope which returned 14 m @ 1.93 g/t gold including 4 m @ 3.86 g/t gold with best results (1 m chip) of 4.58 g/t gold.
Mineralization at Gold Chief is carbonate-hosted and is localized along the intersection of the north-striking Stampede Detachment Fault and an orthogonal lateral ramp fault. In 2017, Silver Range completed a three-dimensional induced polarization and electrical resistivity (3D-IP) survey on the property which defined two drill targets.
The resistivity inversion clearly imaged the structural intersection hosting the Gold Chief Mine mineralization while the chargeability inversion delineated a high at a depth of 80 meters straddling the Stampede Detachment Fault, north of the mined mineralization. The edge of this latter target was intersected in a historical drill hole completed by Homestake Mining Company which bottomed in material described as containing 2 – 6 percent grey sulphides. Both targets are open down-dip.
The terms of the option entitle Crocan to acquire a 100 percent interest in the Gold Chief Property for aggregate cash payments of $160,000 and aggregate issuances of 650,000 Crocan shares by November 2, 2021. Silver Range shall retain a 2 percent net smelter return, half of which may be purchased for $1,000,000.
In addition, Silver Range shall be entitled to receive a one-time cash payment $2.00 for each ounce of gold or gold-equivalent identified as a measured or indicated resource compliant with National Instrument 43-101 and to receive a one-time cash payment $2.00 for each ounce of gold or gold-equivalent identified as a proven or probable reserve compliant with National Instrument 43-101.
Source: Compelo
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