Business
Ely Gold Options its Castle West Property to Bitterroot Resources
Vancouver, British Columbia--(Newsfile Corp. - June 17, 2019) - Ely Gold Royalties Inc . ...
About this update from Bitterroot Resources Ltd.
[{"type":"text","content":"Ely Gold Options its Castle West Property to Bitterroot ResourcesVancouver, British Columbia--(Newsfile Corp. - June 17, 2019) - Ely Gold Royalties Inc. (TSXV: ELY) (OTCQB: ELYGF) (\"Ely Gold\") or the (\"Company\") is pleased to announce that, through its wholly owned subsidiary Nevada Select Royalty, Inc (\"Nevada Select\"), it has signed an option agreement (the \"Agreement\") with Bitterroot Resources Ltd. (TSXV: BTT) and its US subsidiary Trans Superior Resources, Inc. (\"Bitterroot\") whereby Bitterroot will have an option to purchase a 100% interest in the Castle West property located in Esmerelda County, Nevada (the \"Property\") for a purchase price of US$241,000, payable over four years. Nevada Select will retain a 3.0% Net Smelter Return (\"NSR\") royalty on any precious metals production.Under the terms of the Agreement, Bitterroot has paid Nevada Select US$1,000 and will pay US$15,000 on the first anniversary of Closing. On each of the second, third and fourth anniversaries of Closing, Bitterroot will pay US$40,000. A final payment of US$105,000 will be made on the fifth anniversary for the conveyance of the 100% interest in the Property. Bitterroot will make minimum advance royalty payments of US$5,000 on the first and second anniversaries of exercising of the option and US$10,000 on subsequent anniversaries. Bitterroot has the right to buy down 1% of the NSR for a payment of US$1,000,000. The Property is comprised of 34 unpatented mining claims and 3 leased unpatented claims. Upon Option Exercise, Bitterroot will be assigned the lease and Nevada Select will retain a 1% NSR on the leased claims. The Castle West property hosts a high level, low-sulfidation epithermal gold system. The current erosional surface represents the top of a major epithermal system, as evidenced by large areas of quartz-sericite alteration and the presence of high-grade gold-silver mineralized veins. Surface rock chip samples taken across one to two-metre wide veins returned grades of 15-57 grams gold/tonne, 99-370 grams silver/tonne and 60-370 ppm mercury, with high levels of arsenic, molybdenum and antimony. Gold/silver mineralization occurs in strongly altered Tertiary-aged felsic tuffs and andesitic flows. Previous drilling, mapping and surface sampling by Kinross Gold USA Inc. identified near-surface and deeper bulk tonnage go...