GOLD79 SECURES AN AGREEMENT FOR THE BANNER GROUP PATENTED CLAIMS AND PROVIDES CORPORATE UPDATE
May 14, 2021 – Gold79 Mines Ltd. (TSX-V:AUU) (“Gold79” or the “Company”) is pleased to announce that it has completed a Definitive Lease and Option to Purchase Agreement for the Banner Group patented claims (see March 17, 2021 press release) that further expands the Company’s Gold Chain project in western Arizona. Gold79 has also made its required share payments with respect to the Purchase and Sale Agreement for the Tip Top Gold-Silver Project in Nevada.
Mr. Derek Macpherson, President & CEO stated, “Mapping and sampling to date have revealed that the Banner claims occupy an important part of the recently identified zone of gold mineralization hosted by rhyolite dikes. The Banner mine, developed in 1916, followed this mineralization up to 100 meters below the surface along the dike’s contact. Additionally, we view these 93 acres as strategic to the Company as they help de-risk a future development scenario and provide immediately accessible drill targets.”
The Banner Group claims are surrounded by the Company’s recently staked claims which now encompass a broad rhyolite dike complex hosting previously productive quartz veins and broader zones of quartz veinlets. Since the initial visit, approximately 140 rock samples have been collected along the surface traces of several major veins within the Banner Group claims. Results from this work are expected over the next several weeks.
Mr. Rob Johansing, Vice-President Exploration stated, “Our recent work at Gold Chain, along with the expansion of our land position, highlights that this is a larger, more pervasively mineralized system than evidenced in the historic mining activities. Along with the pending assay results, we are awaiting a multispectral analysis focused on the altered rocks associated with the gold system. Combined with the geochemistry, we believe new targets will emerge”.
The Company plans to drill test the Roadside, Black Dyke and Gold Chain targets later this quarter, once a drilling contractor is secured.
Key Terms of Banner Group Definitive Lease and Option to Purchase Agreement
Gold79 Mines USA, a wholly owned subsidiary of the Company, has entered into a Definitive Lease and Option to Purchase Agreement (the “Agreement”) in respect of 93 acres of patented claims. Significant terms of the Agreement include:
- 20-year option period to purchase a 100% interest in the patented claims with annual cash option payments on each anniversary date until the claims are purchased.
- The payments are US$10,000 for the first five years; US$15,000 for years 6 to 10; and US$20,000 for years 11 to 20.
- At its election, the Company has the option, prior to commercial production, to purchase a 100% interest in the Banner Group claims for US$1,500,000.
- A 1% NSR is payable to the vendor on production.
Shares for Tip Top Property Payment
The Company has issued of 2,388,750 common shares of the Company at a deemed value of $0.09 per common share in connection with the US$175,000 payment due under the terms of the Tip Top, Nevada property Purchase and Sale Agreement. The common shares issued have a statutory hold period until September 12, 2021.
The Company now has 121,438,455 common shares outstanding.