Silver Range Resources has optioned its Gold Chief Property, located in Lincoln County, Nevada, to Crocan Capital.
The Gold Chief Property is located 9 kilometres 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 metres 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% grey sulphides. Both targets are open down-dip.
The terms of the option entitle Crocan to acquire a 100% 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% 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: Company Press Release