i was aboot to post a 'whats up' message when news popped up Santa Fe Metals extends option to purchase Gravitas
2015-08-05 16:52 ET - News Release
Mr. Scott Broughton reports
SANTA FE - EXTENSION OF SULLY PROPERTY AGREEMENTS
Santa Fe Metals Corp. has executed an extension agreement with Gravitas Metals Corp. which holds the option to acquire 80 per cent of the Sully property located 30 kilometres east of the Sullivan Mine at Kimberley, B.C.
The Company has extended the option to purchase Gravitas until September 2016. Under the terms of the agreement as revised, SFM must now deliver to Gravitas, on or before September 23, 2016, a written commitment to issue to Gravitas shareholders an aggregate of 14 million shares (or a minimum 35 per cent of the share capital of SFM) on a pro rata basis; SFM is also required to pay to the holders of the Sully property all cash and other payments required to be made by Gravitas pursuant to the underlying option agreement among Gravitas and the holders of the Sully property.
Gravitas has also extended the term of its option with the vendors of the Sully Project. In order for Gravitas to earn its 80-per-cent interest in the Sully property, Gravitas must now incur a total of $3-million in exploration expenditures by October 21, 2017, and issue $1.41-million in cash or shares to the underlying property vendors by October 21, 2018. An 80/20 joint venture will be formed at the time of exercise of the option. A 2-per-cent NSR (net smelter royalty) will be held in favour of the underlying vendors, half of which may be purchased for $5-million.
Sully Project Update
In early 2014 SFM's Project Team defined twin parallel vertical masses, the EAST and WEST Targets at the Sully Project, located 30-km east of the famous Sullivan Mine in southeast BC. Each of the Sullivan-scale targets have geophysical gravity anomalies with over 2,000-m of apparent N-S strike and are estimated to come within 500-m of surface. Coincident, deep filtered Airborne Mag anomalies validate the dual targets and surface Zn+Pb soil geochemical anomalies above the targets may indicate leakage from a mineralized source at depth.
Later in 2014, SFM commenced its initial exploration drilling work at the EAST Target. That drilling intersected Sullivan-Time equivalent and adjacent strata, while the use of oriented core provided definition of structural aspects of the geological setting for the first time. Drilling has progressively moved closer to intersecting the centroid of the gravity mass that appears to coincide with the projected position of Sullivan Time. The most recent hole completed (SU14-09) is estimated to have passed within 100-m of the EAST mass based on down hole mag-field and temperature measurements.
It should be noted that while the initial drilling has not intersected massive sulphides to date, none of the rock types intersected account for the large gravity profile measured at the Sully Project.
Management and the Sully Project Team believe that the geophysical masses are best explained by the presence of high- specific gravity, SEDEX-style, massive sulphides. The contrast between the specific gravity of typical Sullivan massive sulphides and the sedimentary country rock is particularly well suited to modern gravity techniques. Sully's targets present a discovery opportunity based on their Sullivan-size geophysical anomalies and confirmed Sullivan-time geological setting.
Planned exploration for 2015 and 2016 includes additional detailed gravity measurements followed by ongoing drill testing at the EAST and WEST targets. The overall program will be results-oriented and will evolve as new information is learned.
Readers should note: The Company cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Sully property.
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