Teuton Resources Options BC Properties to Pretium Resources for $1.8 Million

Teuton Resources (TSXV:TUO) has optioned its King Tut, Tuck and Silver Crown West properties to Pretium Resources for $1.8 million in cash. King Tut and Tuck are located next to Pretium’s Brucejack propertym while the Silver Crown West property is located further south.
As quoted in the press release:

Teuton will retain a 2% NSR in the properties with no buyback.
The King Tut and Tuck properties adjoin due south of Pretium’s Brucejack property where exploration work to date has established measured and indicated resources of 8.7 million ounces of gold (15.3 million tonnes grading 17.6 g/t gold) in the Valley of the Kings gold deposit. Pretium very recently received federal environmental approval for their Brucejack Project and plans to put it in production in 2017. A URL for a map is provided at the end of the news release.
Work done to date on the King Tut and Tuck properties suggests similar geology to that in evidence on Pretium’s Brucejack property. A single hole drilled in 2012 on the King Tut intersected 222m running 0.88 g/t gold, very close to the same grade and length as the average of 21 holes drilled into Pretium Resources Bridge deposit situated 2km to the north. On Teuton’s Tuck property located south of the King Tut, meltback of snow and ice in 2014 exposed a new altered zone of jarosite-stained quartz stockwork carrying anomalous values in gold, silver and arsenic. A number of anomalous gold intervals were obtained in drilling of several short holes in the southern part of this zone in 2014.
The Silver Crown West property, located further south, features a pronounced EM anomaly which remains to be tested.
The $1,800,000 is payable as follows: $100,000 upon signing; a further $150,000 on or before August 15, 2015; a further $250,000 on or before January 14, 2016; a further $250,000 on or before July 14, 2016; a further $250,000 on or before July 14, 2017; a further $400,000 on or before July 14, 2018; and, a further $400,000 on or before July 14, 2019.

Teuton president, Dino Cremonese, said:

We are pleased to have optioned off three of our more than thirty properties in the Golden Triangle to a company of the caliber of Pretium Resources. The 2% NSR without a buyback ensures that we will retain a significant interest in any discoveries made on the optioned ground. Going the NSR route also has the advantage of saving on future dilution of equity.

Click here for the full press release.