"Since mid-October
"After having worked as a consultant with North Peak these past three months, I am excited to take on the role of Chief Operating Officer and similarly enthused about the prospects of filling out and leading North Peak's
The Black Horse Property has within its boundaries the historic Black Horse and San Pedro gold mines, amongst the most successful of the historic gold mines and claims that were mined from 1905 to 1913, during the early years of
While there was intermittent mining on the Black Horse Property after 1913, the last of any real mining and production appears to be of tungsten ore from 1941 to 1953. Thereafter the only material activity on the Black Horse Property appears to be the exploration drilling conducted by the current owner (
Black Horse Property
- Historic resources – Historical inferred mineral resource estimates of 350,000 troy ounces of gold with a grade of 1.2 grams gold or 0.045 oz (using a base case cut off of 0.005 opt Au), plus 1,140 million oz of silver at 0.14 ounce per ton, was prepared for Minex in a technical report dated effective
November 18, 2016 byScott E. Wilson , C.P.G. (the "Technical Report"). A Qualified Person has not done sufficient work for the Company to classify these historical estimates as a current mineral resource or mineral reserve. The Company is not treating these historical estimates as current mineral resources or mineral reserves and has not verified the historical resource estimates. While the Technical Report was prepared according to the guidelines of the CSA's National Instrument 43-101, the reader is cautioned that the data used in the preparation of the historical resource estimates does not meet the current standards of exploration quality assurance and quality control protocols and significant additional drilling (including diamond drilling, some which will twin earlier holes), data verification (quality control), and a site visit would be required to ensure the quality of historic data meets current standards for use in a resource estimate. Further information in respect of this historical resource estimates is set forth below.* - Historic Metallurgical work – Historic but preliminary metallurgical work consisting of bottle roll cyanide tests on 12 oxide drill cutting composites and 4 surface sample composites returned an average recovery of 97% for gold and 73% for silver at minus 100 mesh in 48 hours.
- Black Horse geology – Approximately 65% of the gold mineralization occurs in hydrothermally altered and micro-veined quartzite inter-layered beds of mica schist in the
Pre-Cambrian McCoy Creek group. Most of the gold mineralization in the quartzite appears to be stratiform and varies from 20-100 feet in thickness. Gold grades range from below detection to 1.4 ounce per ton over ten-foot drill assay intervals (see below for further information). A major thrust structure is present- representing the conduit for gold fluids. The CambrianLincoln Peak limestone overlies thePrecambrian McCoy Creek group and is in the thrust fault contact with thePrecambrian McCoy Creek group. - Two distinct areas of development – The Black Horse Property has 2 distinct areas to focus on, known as Area A and Area B. The Technical Report and its historic estimate of gold and silver resources refer only to data from Area A and is the oxide portion of that Area A.
Option
The Company an option to acquire, in stages, 100% of right, title and interest in the Black Horse Property, as follows:
- First 50% - the Company will acquire right, title and interest in and to 50% of the Black Horse Property, by making a
US$10 million cash payment within 18 months of the initiation of the option (the "First Payment") and a secondUS$10 million cash payment within 12 months of the First Payment. - Remaining 50% - the Company will acquire right, title and interest in and to the remaining 50% of the Black Horse Property by obtaining material permits required for construction and operation of a mine on the property. The Company has five (5) years from the date it acquires the first 50% in the Black Horse Property, to acquire these permits.
Should the Company exercise the option and acquire 100% of the right, title and interest in the Black Horse Property, then the following production royalties will be payable to Minex: (a)
The Company will issue additional press releases related to its progress on the exploration of the Black Horse Property and other material information as it becomes available.
Mr.
About
The Company is a Canadian based gold exploration and development company that is listed on the
*CAUTIONARY NOTE REGARDING HISTORICAL RESOURCE ESTIMATES AND MINERAL RESOURCES: In respect of the historical mineral resource estimates referenced above grade shells were interpreted and constructed and the estimates used inverse distance techniques in
In addition, mineral resources are not mineral reserves and do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted to mineral reserves.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING HISTORICAL RESOURCE ESTIMATE: This news release has been prepared in accordance with the requirements of the securities laws in effect in
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect timing and completion of any drilling and work programs on the Property, estimates of mineralization from drilling, geological information projected from sampling results and the potential quantities and grades of the target zones, potential for minerals and/or mineral resources, and statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to the future business activities and operating performance of the Company that may be described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.
By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, accuracy of assay results, geological interpretations from drilling results, timing and amount of capital expenditures; performance of available laboratory and other related services, future operating costs, and the historical basis for current estimates of potential quantities and grades of target zones, as well as those risk factors discussed or referred to in the Company's Management's Discussion and Analysis for the year ended
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Neither the
SOURCE
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