Published: February 28, 2024 |

[Click image to enlarge]

Metallis Resources has entered into an option agreement with Greyhound Mining & Milling, to acquire a 100 percent interest in the Greyhound Property.

The property is located in the mining friendly state of Idaho. The property encompasses the past producing, Greyhound and Bulldog high-grade silver/gold mines along with multiple historic workings. The agreement is subject to customary regulatory approvals.

“Although we are seeing an overall change for the better in investor sentiment, it’s important to recognize the current market conditions and understand the cost and dilution implications of large-scale exploration in the Golden Triangle at this time. As the market continues to find its feet, it’s critical for Metallis to add value in alternative ways, despite the fact that our principal project remains the Kirkham Property,” said Fiore Aliperti, president and CEO of Metallis.

“With that in mind, we started the process in 2023 to look at possible acquisitions and the group that owned the Greyhound stood out. It is important that if we are to add a second project to the MTS portfolio, not only does the project need to show economic potential, the optionor needs to hold the same values as us. These include putting the project, the company, and the investors first,” added Aliperti.

“This option agreement demonstrates the confidence both parties have in this high-quality resource asset as it favors long term success with low upfront costs. Metallis can efficiently put funds into the ground, with resources and services more accessible than operating in a remote access location. The agreement for staged compensation over a 10-year period is structured to reward both parties as the project advances through the stages of exploration and development,” concluded Aliperti.

The agreement requires staged payments of $670,000, which commence on the date of signing the agreement on February 26, 2024, and exploration expenditures of $10 million over a ten-year period. At any time during the option period, the company may exercise the option to acquire a 100 percent interest in the property by paying $7.5 million, plus the balance remaining of the $670,000 at the time of exercise.

The 124 hectare Greyhound Property encompasses two past producing silver/gold mines (Greyhound and Bulldog) in central Idaho. The claims outlined in the agreement comprise 12 patented mining claims and three patented mill site claims with one patented pending mining claim and eight patented pending mill site claims. The property is road accessible via paved and gravel road and is located 41 km from Stanley and 225 km from Boise, Idaho.

Ongoing compilation of historic assays by the Metallis geological team has suggested a robust system that demonstrates consistent mineralization at multiple historic workings including the two most developed underground operations at the Greyhound and the Bulldog mine.

NEXT STEPS

The Greyhound Property provides large upside potential due to a lack of modern exploration being performed over the property’s entire history. In the last 45 years, the property has been held by a family-owned business as part of a larger asset portfolio. This has left a well-endowed property off the market, during a period where geological methodologies and approaches have changed, and exploration technologies have evolved. This allows Metallis to leverage its exploration experience to unlock the mineralized potential through geological mapping, drone arial surveys, geophysical surveys, and diamond drilling.

Continued compilation of historic reports will help the team determine the true grade and tonnage potential outside of the historic workings. The last ore shoot encountered in the Lower Rufus Adit returned some of the best grades on the property that are comparable to many of the operating mines in the state. A further 3,000 meters of untested ground remains across multiple high-grade silver/gold surface showings and pits. The system also remains open to depth as mineralization has been demonstrated over 500 vertical meters from the Rufus Adit to mineralization on top of Greyhound Ridge.

This region has recently seen exploration success where historic silver camps have been able to outline sources at depth and this will be factored into the team’s exploration programs. During initial exploration, the team will be assessing the property for source intrusions or disseminated mineralization. The property’s location, within the Great Falls tectonic zone and the Central Idaho batholith also lends itself to the potential for porphyry mineralization due to mapped tertiary aged intrusions on the property.

Metallis Resources is a Vancouver-based company focused on the exploration of gold, copper, nickel, and silver at its 100 percent owned flagship Kirkham Property situated in northwest British Columbia’s Golden Triangle.

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)