Business
RETRANSMISSION: Rhyolite Resources to Acquire Brothers Project in Suriname
Vancouver, British Columbia--(Newsfile Corp. - October 14, 2020) - Rhyolite Resources Ltd. (TS...
About this update from Rhyolite Resources Ltd.
[{"type":"text","content":"RETRANSMISSION: Rhyolite Resources to Acquire Brothers Project in SurinameVancouver, British Columbia--(Newsfile Corp. - October 14, 2020) - Rhyolite Resources Ltd. (TSXV: RYE) (the \"Company\" or \"Rhyolite\") is pleased to announce that it has entered into a definitive share purchase agreement, dated October 13, 2020, with each of the shareholders (collectively, the \"Vendors\") of 2777662 Ontario Corp (\"ONCorp\") to acquire all of the outstanding share capital of ONCorp. ONCorp is a privately-held arms-length company which holds an option to acquire an 80% interest in the Brothers Project in Suriname. Under the terms of the purchase agreement, Rhyolite will issue 15,546,566 common shares to the Vendors in consideration for all of the outstanding share capital of ONCorp (the \"Transaction\").Highlights:96-square-kilometer Brothers Exploitation concession is located approximately 140 kilometers south of Paramaribo, the capital city of Suriname and accessible by road and within the same general mineralized lithologic and structural setting as IAMGOLD's Rosebel Gold Mine and Newmont's Merian Mine.The Brothers Project is an exploitation license, which allows mining with no additional permits. The Project is not in or near any protected areas, and no villages are located within the concession. Brothers is within the area of interest between Newmont and the government of Suriname in their Mineral Agreement.Brothers is considered one of the more prospective projects in the Guiana Shield with a number of high priority targets supported by 246 grab samples from the extensive small scale mining operations. Of these samples, 84 exceed 1 g/t Au (34%) and 22 exceed 10 g/t Au with a high assay of 105 g/t Au. At one mine on the property, small scale underground mining by hand reported 50 kilograms of gold production over 10 months of operation with three underground levels and a fourth being developed. Two samples of tails from the sluice collected during a site visit showed very high gold values of 21.8 g/t and 28.9 g/t, indicating high head grades and low recoveries. Another small-scale mine located on the property in saprolite with exposed quartz veins 8 to 10 meters in width delivered assay results from channel sampling with an average grade of 6.48 g/t Au over 10 meters and includes 17.25 g/t Au over 2 meters. Richard Graham, President...