Mining News: Northern Neighbors: Silver Range to sell Uptown Gold

Silver Range Resources Ltd. Aug. 30 said it has signed a letter of intent to option the Up Town gold project located about five kilometers (three miles) northwest of Yellowknife to Rover Metals Corp. The property covers eight gold showings, collectively defining two corridors of structurally hosted high-grade gold mineralization sub-parallel to the shear zone hosting the historical 8.1-million-ounce gold deposit that supported the Giant Mine. The Fox South shear at Uptown is 1,100 meters west of the Brock shaft at Giant and consists of a 10- to 70-meter-wide reverse shear zone mapped over a strike length of 400 meters. Grab samples from this zone have assayed up to 30.3 grams per metric ton gold and sawn channel sample results have returned up to 1.1 meter of 2.20 g/t gold. Two holes have been drilled into this zone, returning 4.14 meters of 2.62 g/t gold and 2.13 meters of 4.67 g/t gold. Farther west, seven showings define a 4,500-meter-long corridor of structurally hosted gold occurrences. Rover Metals Corp. is a private gold exploration and small-scale gold production company focused on assets in Canada and Colombia. Under the terms of the agreement, Rover has the option to purchase a 75 percent interest in Uptown Gold over a three-year term in return for C$300,000 in cash; 7.5 percent of Rover’s outstanding shares upon signing; and a work commitment of C$1.6 million. Once vested, Rover has the option to purchase the remaining 25 percent of the property by issuing Silver Range 4.9 percent of its shares outstanding at the time thereof. If Rover acquires full ownership of Uptown, Silver Range will retain a 2 percent net smelter return, half of which may be purchased for C$1 million. Advance royalty payments of C$50,000 per annum would be due to Silver Range on the fifth anniversary of a definitive agreement.

-Shane Lasley