The Conversation (0)
Stakeholder Gold Corp. (TSXV:SRC) has entered into a property option agreement with Mountain View Gold Inc. (MVG) and Mountain View Gold Corp., a wholly owned subsidiary of MVG, pursuant to which Mountain View has granted the corporation an option to earn up to a 100-per-cent interest in Mountain View’s Goldstorm property, located in Elko county, …
Stakeholder Gold Corp. (TSXV:SRC) has entered into a property option agreement with Mountain View Gold Inc. (MVG) and Mountain View Gold Corp., a wholly owned subsidiary of MVG, pursuant to which Mountain View has granted the corporation an option to earn up to a 100-per-cent interest in Mountain View’s Goldstorm property, located in Elko county, Nevada. The transactions contemplated by the Agreement are conditional upon and subject to the approval of the TSX Venture Exchange.
The Agreement
First Option
Under the terms of the Agreement, the Corporation has the sole exclusive right and option to earn an initial 40% interest in the Property (the “First Option”), by: (i) paying to Mountain View cash consideration in the amount of $40,000, (ii) issuing to Mountain View 1,250,000 common shares in the capital of the Corporation (the “Common Shares”), (iii) issuing to Mountain View an additional 1,250,000 Common Shares on the nine month anniversary of the date of the Agreement, and (iv) incurring certain exploration expenditures on the Property of not less than $750,000 within 12 months of the effective date of the Agreement or by paying to Mountain View the balance of such amount not incurred by the Corporation prior to that date.
Second Option
Following the completion of the First Option, the Corporation has the option to earn a further 40% interest in the Property (the “Second Option”), by: (i) issuing to Mountain View 1,750,000 Common Shares upon the date of exercise (the “Second Option Exercise Date”), (ii) issuing to Mountain View an additional 1,750,000 Common Shares on the three month anniversary of the Second Option Exercise Date, (iii) incurring certain exploration expenditures on the Property of not less than $750,000 within nine months of the Second Option Exercise Date or by paying to Mountain View the balance of such amount not incurred by the Corporation prior to that date, and (iv) delivering a technical report relating to the Property.
Third Option
Following the completion of the Second Option, the Corporation has the option to earn a further 20% interest in the Property (the “Third Option”), by either: (i) paying to Mountain View cash consideration equal to $20 per ounce of gold or gold equivalent multiplied by the total ounces of gold or gold equivalent (measured, indicated and inferred) on the Property as set out in a technical report, to be dated no later than 60 days prior to the exercise date of the Third Option, or (ii) issuing to Mountain View 3,000,000 Common Shares.
The Property
The Property is located in the Snowstorm Mountains Mining District in the western part of Elko County, Nevada. The center of the Property is approximately 17 km northwest of the town of Midas, the location of Klondex’s Ken Snyder (“Midas”) underground gold mine and approximately 18 km east-northeast of Newmont’s open pit Twin Creeks gold mine.
The Property contains numerous historic prospects with no obvious production; the earliest known exploration dates to 1907. There was no activity on the Property between the 1930’s and 1980. An aeromagnetic survey, along with trenching, was conducted in the 1980’s. Drilling exploration commenced in 1989 and was conducted by various companies through 2000. Geologic mapping was published in 1993. Mexivada acquired the Property in 2007, and West Kirkland Mining leased the Property in 2010 and drilled two core holes.
Of a total of 53 holes drilled on the Property, only 3 were core holes. The bulk of the percussion (open hole) and reverse circulation (RC) drilling was performed along a dominantly east-west trending structural zone located from 500 m to 1,000 m north of the current target area. A boulder train, yielding results as high as 39 g/t Au occurs along this northern trend, but drilling failed to identify the source.
In 2010, West Kirkland Mining drilled two core holes on the Property. DH-2010-1 is located on the Clayton Veins system, situated about 1 km south-southwest of the northern zone. Beginning at 64.4 m depth, the hole intercepted a 2m vein zone that assayed 5.5 g/t Au, including a 1 m interval @ 9.27 g/t Au and 73 g/t Ag. The Clayton Veins system trends NW-SE and has been tested by only this one drill hole. The parallel Prochnau Veins system, located about 300 m to the NE, has not yet been drill-tested. Both these vein systems are open to the NW and SE, and evidence of veining has been traced over 2,000 m strike length.
The exploration target/model for the Property is based on the Midas mine located about 16 km (10 miles) to the south-east. Goldstorm sits near the intersection of three important gold-bearing structural corridors: the Getchell Trend; the Carlin/Midas Trend; and the Northern Nevada Rift. It is interpreted that the intercept in hole DH-2010-1 is near the top of a blind, potentially high grade shoot similar to the geological setting observed at the Midas Mine.
About Stakeholder Gold
Stakeholder Gold is a Canadian mineral exploration company headquartered in Toronto, Canada. The primary focus of the Corporation is to explore and develop the Ballarat Gold Property in the White Gold District of the Yukon Territory.
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