Cypress Development Corp. (TSXV:CYP) announced that it’s entered an option agreement to earn a 100-percent interest in the Oregon-based Frost gold property.
Cypress Development Corp. (TSXV:CYP) announced that it’s entered an option agreement to earn a 100-percent interest in the Oregon-based Frost gold property. Frost is comprised of 48 claims across 1,056 acres, and the agreement is with Robert D. Marvin.
About the Frost property:
The Frost property lies within the Owyhee Highlands, a Miocene age geologic terrain which is known to contain high grade gold mineralization hosted in both low sulfidation (quartz-adularia) veins and within pervasively altered and brecciated sandstone units.
The Frost project is centered on an outcropping, reed cast fossil bearing, hot springs sinter. Limited drilling has discovered blind, coarse gold bearing veining at shallow levels below the outcropping sinter. Strike extension exploration of the known discovery vein system is incomplete. In addition, exploration of the discovery vein system within a massive and highly favorable basalt unit located deeper in the rock section under the known mineralized structure has not been done. The high potential for the discovery of significant gold bearing vein systems within the massive, thick basalt unit is due to the brittle nature of the unit, repeated fracturing of such units provide excellent pathways for vein development.
Terms of the option agreement are as follows:
Pursuant to the terms of the Option Agreement, Cypress has been granted an option to earn a 100% interest in and to the Frost property for total consideration of USD$30,000, the issuance of 250,000 shares of Cypress and exploration expenditures on the Property totaling USD$350,000 over the four-year term of the Agreement. The Property is subject to a 2% net smelter return royalty (‘NSR’) in favour of the Optionor. The Company may purchase, at any time, one-half of the NSR (1%) for the total consideration of USD$500,000.
In order to maintain the Option in good standing, Cypress shall;
- Make a cash payment of USD$5,000 and issue 50,000 share of the Company upon acceptance of this Agreement by the TSX Venture Exchange.
- Make a cash payment of USD$5,000 and issue 50,000 share of the Company on the first anniversary date of this Agreement.
- Make a cash payment of USD$10,000 and issue 75,000 share of the Company on the second anniversary date of this Agreement.
- Make a cash payment of USD$10,000 and issue 75,000 share of the Company on the third anniversary date of this Agreement.
- Expend not less than USD$350,000 on exploration and/or development of the Property at any time before the date which is four years from the date of TSX Venture Exchange approval.