VANCOUVER, BC, June 24, 2021 /CNW/ - Eminent Gold Corp.
(TSXV: EMNT) ("Eminent" or the "Company") is pleased
to announce that it has acquired an option (the "Option") to
purchase the Gilbert South Project ("Gilbert South" or the "Property"),
located approximately 42 km west of Tonopah, Nevada (Figure 1). The Property lies
within the Gilbert District which has a long history of both
production and recent resource drilling. Multiple small shafts and
adits on the Property are developed along free gold bearing
epithermal quartz veins and vein stockworks (Figure 2 and
Figure 3). The Company considers this to be one of the best
epithermal prospects in the Walker Lane, which has a total gold
endowment of over 53 Moz Au and 350 M
oz Ag, all produced from similar epithermal occurrences.
Eminent has entered into an option agreement (the "Option
Agreement") with Orogen Royalties Inc. ("Orogen"),
whereby the Company acquired the Option to purchase 100% of
Gilbert South. The Company has up to
five years to acquire a 100% interest in the 110 unpatented claims
(890 hectares), by making cumulative cash payments of USD
$875,000 (collectively, the "Cash
Payments"), cumulative share payments of 500,000 common shares
("Shares") in the capital of the Company (collectively,
the "Share Payments"), and a total of USD $100,000 in expenditures during the option
period.
Paul Sun, President and CEO of
the Company commented:
"The Gilbert South Property represents an exceptional
opportunity to explore a well-known historic gold district. This
acquisition marks our fourth project in Nevada that supports our goal of developing a
high-quality exploration company that is pursuing major discoveries
using new geological concepts within the Great Basin. Gilbert South is an excellent complement to our
Weepah and Spanish Moon projects given stage of exploration and
logistics around the portfolio. Eminent has created an exciting
pipeline of premier exploration opportunities in Nevada which we are rapidly advancing to
consecutively drill all four projects in the coming months."
The Gilbert South Property
Infrastructure:
The Property is an hour's drive from
the mining town of Tonopah,
accessed by a US highway and 5 miles of county-maintained dirt
roads. A well-developed network of historic dirt roads covers most
of the property.
Geology:
The Property overlies a large, complex
landscape of dacite and andesite flow domes and intrusions (Figure
2) that host multiple low sulfidation epithermal vein swarms
(Figure 3). The rock is extremely altered, predominantly by
illite/smectite clay minerals, typical of high-level, hot springs
related, epithermal systems. High grade gold occurs at the surface
in both quartz/chalcedony veins and in hydrothermal breccia:
Grades locally exceed 30g/t Au (Figure 3). Historic RC drilling,
which occurred before Orogen's recent mapping and soil sampling,
indicate long runs of low-grade gold mineralization, but this
drilling did not test the most prospective surface geochemistry,
nor the potential deeper feeder structures, which host bonanza
grades in this type of system. Work by geologists specializing in
epithermal systems by both the Company and by Orogen, suggest that
the types of vein textures and alteration are those that typically
occur near the top of these systems (Figure 4).
The Targets:
The northern portion of the Property
hosts the Ohio Camp Target Area, which occurs on the
margin of a shallow, prospective pediment. Rock samples return
assays of up to 8.6 g/t Au in silicified tuff and rhyolite. A
historic drillhole has an intercept of 33.5
m of 0.34 g/t Au. It has untested gold-in-soil and
gold-in-rock anomalies. The Burrow Central Target
Area yielded a 30.7 g/t Au rock sample showing visible gold
in a crustiform quartz vein. There are no drillholes in the
vicinity of this sample. The Corky Mine Target
Area has rock samples up to 16.8 g/t Au taken over a meter
(by Company personnel). A drill hole intercept in another location
assayed up to 1.5 m of 3.8 g/t. This
area hosts numerous closely spaced veins that have never been
adequately sampled (see photo in Figure 4).
Dan McCoy, Chief Geologist of
the Company commented:
"The Gilbert South Property is a classic large epithermal system
with high grades of gold. Previous drilling did not test the most
prospective targets and little targeting has been done with respect
to the potential bonanza grade gold that may exist at depth (Fig.
4) We intend to build on the excellent work that Orogen geologists
have done and to develop our drill targets."
The Agreement
In accordance with the terms and conditions of the Option
Agreement, in order to exercise the Option and acquire the Property
the Company must make the Cash Payments and Share Payments in
accordance with the following schedule:
(a)
|
USD $25,000 and
50,000 Shares on June 23, 2021 (the "Effective
Date");
|
|
|
(b)
|
USD $50,000 and
100,000 Shares on or before the first anniversary of the Effective
Date;
|
|
|
(c)
|
USD $100,000 and
150,000 Shares on or before the second anniversary of the Effective
Date;
|
|
|
(d)
|
USD $100,000 and
200,000 Shares on or before the third anniversary of the Effective
Date;
|
|
|
(e)
|
USD $100,000 on or
before the fourth anniversary of the Effective Date; and
|
|
|
(f)
|
USD $500,000 on or
before the fifth anniversary of the Effective Date.
|
Additionally, the Company must incur an aggregate of USD
$100,000 in expenditures on the
Property. The Option Agreement is subject to the approval of
the TSX Venture Exchange.
The Property is comprised of three different claim blocks: (i) 2
unpatented claims known as the "Nevada Select Claims", (ii)
27 unpatented claims known as the "GL Claims", and (iii) 81
unpatented claims known as the "Timberline Claims". The
Timberline Claims are currently subject to a 3% Net Smelter Return
royalty and the Nevada Select Claims are currently subject to a 2%
Net Smelter Return royalty. Upon exercising the Option, the Company
will grant Orogen a 2% Net Smelter Return royalty on the GL Claims
(the "GL Royalty"). The Company shall have the option and
right to repurchase one percent (1%) of the GL Royalty for
$1,000,000, thus reducing the GL
Royalty to one percent (1%) of all products from the GL Claims. The
Company is responsible for Property holding costs during the
duration of the Option Agreement.
All scientific and technical information in this news release
has been prepared by, or approved by Justin
Milliard, PGeo. Mr. Milliard is a qualified person for the
purposes of National Instrument 43-101 - Standards of Disclosure
for Mineral Projects. The information is provided by data received
from Orogen and by check samples performed by Company
personnel. It should be noted that the Company
believes that all of the information it has received is reliable;
however, the Company's qualified person has not conducted
sufficient verification procedures to confirmethe
results.
On behalf of the Board of Directors,
"Paul Sun"
CEO and Director
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This news release contains certain statements that may be
deemed "forward-looking statements" with respect to the Company
within the meaning of applicable securities laws. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur.
Forward-looking statements made in this news release include the
Company's exploration plans for the Gilbert South Property, the
Company's expectations for the potential of the Gilbert South
Property, and the Company's plans for drilling on the Gilbert South
Property. Although the Company believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, including the assumption that records and
reports of historical work on the Gilbert South Property are
accurate and correct, such statements are not guarantees of future
performance, are subject to risks and uncertainties, and actual
results or realities may differ materially from those in the
forward-looking statements. Such material risks and uncertainties
include, but are not limited to, the Company's ability to raise
sufficient capital to fund its obligations under its property
agreements going forward, to maintain its mineral tenures and
concessions in good standing, to explore and develop the Company's
projects or its other projects, to repay its debt and for general
working capital purposes; changes in economic conditions or
financial markets; the inherent hazards associates with mineral
exploration and mining operations, future prices of gold, silver
and other metals, changes in general economic conditions, accuracy
of mineral resource and reserve estimates, the ability of the
Company to obtain the necessary permits and consents required to
explore, drill and develop the Company's projects and if obtained,
to obtain such permits and consents in a timely fashion relative to
the Company's plans and business objectives for the projects; the
general ability of the Company to monetize its mineral resources;
and changes in environmental and other laws or regulations that
could have an impact on the Company's operations, compliance with
environmental laws and regulations, aboriginal title claims and
rights to consultation and accommodation, dependence on key
management personnel and general competition in the mining
industry. Forward-looking statements are based on the reasonable
beliefs, estimates and opinions of the Company's management on the
date the statements are made. Except as required by law, the
Company undertakes no obligation to update these forward looking
statements in the event that management's beliefs, estimates or
opinions, or other factors, should change.
SOURCE Eminent Gold Corp.