VANCOUVER, BC / ACCESSWIRE / July 29, 2020 / Bitterroot Resources Ltd.'s (TSXV:BTT) US subsidiary ("Bitterroot") has entered into a mining lease, with an option to purchase, with Geological Services, Inc. ("GSI") on the 31-claim Coyote Sinter gold/silver project in Elko County, Nevada.
The Coyote Sinter property is located 9 kilometres east of the historic Tuscarora mining district, on the southern edge of the Jerritt Canyon (Independence) Mining District. The property hosts a fully-preserved low sulfidation epithermal (hot spring) system, with outcropping silica sinter, which defines the original paleosurface. Geochemical surveys of soil and rock chips across the sinter area host highly anomalous antimony, mercury, gold and arsenic. Four shallow angle holes drilled by Chevron Minerals in the 1980's confirmed the favourable epithermal geochemical signature. The Chevron holes were not drilled deep enough to test the high-grade precious metals-bearing zones at the optimal depth, which is estimated to be 200 to 400 meters below the current surface.
The Coyote Sinter claims are located on Federal (BLM-administered) lands. Initial low-cost field work will include an expanded soil survey, alteration mapping and ground geophysics to define further targets beneath the outcropping sinter. Core drilling to test below the historic Chevron drill holes is planned for the fall of 2020.
In order to maintain the lease and option to purchase, and subject to the approval of the TSX Venture Exchange (TSX-V), Bitterroot is required to make the following advance minimum royalty (AMR) payments and share issuances to GSI;
(i) $10,000 (paid) and the issuance of 100,000 common shares in the capital of Bitterroot within 10 days of the TSX-V Acceptance Date;
(ii) $10,000 on the 6-month anniversary of the Acceptance Date;
(iii) $30,000 and the issuance of 100,000 common shares in the capital of Bitterroot on or before the first annual anniversary of the Acceptance Date;
(iv) $40,000 and the issuance of 50,000 common shares in the capital of Bitterroot on or before the second annual anniversary of the Acceptance Date;
(v) $60,000 and the issuance of 50,000 common shares in the capital of Bitterroot on or before the third annual anniversary of the Acceptance Date;
(vi) $100,000 on or before the fourth annual anniversary of the Acceptance Date;
(vii) $125,000 on or before the fifth annual anniversary of the Acceptance Date;
(viii) $125,000 on or before each annual anniversary of the Acceptance Date after the fifth anniversary as long as the Agreement remains in effect, adjusted for inflation from that date.
At any time while the Agreement remains in effect, Bitterroot has the exclusive right and option to purchase the Coyote Sinter property from GSI by paying two million dollars ($2,000,000), less the sum of all AMR payments already paid to GSI, up to the date of exercise.
GSI will retain a two (2) percent net smelter returns (NSR) royalty, less previous AMR payments, on the Coyote sinter property and on any Bitterroot-located federal mining claims within a one (1)-mile area of interest (AOI). Bitterroot has the option to purchase half (1%) of the 2% NSR for $2,000,000. GSI will also retain a one (1) percent NSR royalty on any mineral rights acquired from 3rd parties within the AOI. Bitterroot has the option to purchase half (0.5%) of this 1% NSR for $500,000. The royalty purchase options are exercisable at any time prior to commercial production.
Bitterroot's technical advisor, Mr. Rick Streiff, CPG, stated "the Coyote Sinter property hosts a highly prospective, well-preserved epithermal system, which has never been tested at the appropriate levels for bonanza-grade gold/silver mineralization".
Rick Streiff, CPG, is the Qualified Person responsible for the technical content of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael S. Carr
Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS: Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects" or "it is expected", or variations of such words and phrases or statements that certain actions, events or results "will" occur. This document contains statements about expected or anticipated future events and/or financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, regulatory processes and actions, technical issues, new legislation, competitive conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and the company's ability to execute and implement its future plans. Actual events may differ materially from those projected in the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, except as may be required by applicable securities laws. For such forward-looking statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
CONTACT:
604-922-1351
www.bitterrootresources.com
SOURCE: Bitterroot Resources Ltd.