Gold Bull Executes LOI to Acquire Coyote Gold Mine Project, Utah
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Gold Bull Resources has executed a letter of intent (LOI) to acquire 100 percent of the Coyote Mine project from private company Desert Mountain Gold. Coyote is located in Juab County, Western Utah and is considered prospective for gold and silver mineralization. The project comprises 83 lode mining claims for approximately 1,715 acres and two state metalliferous mineral leases for approximately 1,370 acres for a total of 3,085 acres.
Gold Bull has the option to acquire 100 percent of the project by making an ongoing annual payment of $50,000 which will convert to a 3 percent net smelter royalty (NSR) in favor of Desert Mountain Gold upon production commencing. Gold Bull will have the election to reduce the net smelter royalty by paying $1,000,000 per 1 percent NSR reduction, to reduce up to 2 percent of the NSR.
“We view Western Utah as highly prospective yet underexplored region. Utah is a mining friendly state and it is a jurisdiction that Gold Bull will be taking a closer look at. We look forward to learning more about the Coyote project as the historical numbers are extremely encouraging,” said Gold Bull Chairman, Craig Parry.
Coyote Project Overview
The area of interest is located in the Great Basin portion of the Basin and Range Province of the western United States. The general landscape of the area is dominated by north-south trending fault-block mountain ranges separated by intervening sediment-filled basins or valleys. The age of most of the rocks in the mountain is Precambrian and Paleozoic. The rocks are mostly shales, quartzites, and carbonates (dolomite and limestone). There are intrusive and extrusive rocks found in the valleys and mountains and are generally of Tertiary age. The source of much of the volcanism is calderas. The youngest rocks are Quaternary in age and are mostly lake deposits, stream deposits, and alluvial fans along the mountain fronts. In the Great Basin the drainage is mostly interior, i.e., the rivers and stream do not flow out to the ocean. They flow into closed basins found between the mountain ranges. The streams in the area of consideration flow into the Sevier Lake, which is a closed basin and has no outlet to the sea.
There are alteration, mineralization, and jasperoids in the volcanic and Precambrian rock covered by the claims. There is a small mine on the property called the Coyote Mine with small production and reported 1000 ounces silver. A desk top review of the existing limited drilling data indicates excellent drilling opportunities along a mostly east-west structure covered by the claims.
About Gold Bull Resources Corp.
Gold Bull Resources Corp. is a gold focused mineral exploration company that strives to generate and advance high-reward project acquisitions in regions with proven mineral wealth. The company’s exploration hub is based in Nevada, USA and is focused on precious metal projects located in top-tier mineral districts that contain significant historical production, existing mining infrastructure and an established mining culture. The Company’s primary focus is on project generation and evaluation in Nevada and its secondary focus is in Utah.
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