Silver Standard Signs Option Agreement to Explore Fisher Gold Project

Silver Standard (TSX:SSO) has announced that it has signed an option agreement with Eagle Plains Resources (TSXV:EPL) to acquire up to an 80 percent interest in the Fisher project.
As quoted in the press release:

Highlights:

• Numerous gold occurrences along shear zones similar to our Seabee Gold Operation
  • Grab and chip samples have yielded grades ranging from 9.2 g/t to 37.3 g/t gold
• Orogenic gold deposit potential with a greenstone host similar to our Santoy and Seabee deposits
• Potential to consolidate large land package of over 34,000 hectares

Carl Edmunds, Silver Standard’s Chief Geologist said, “The Fisher project covers the immediate extension of the shear zone that hosts our highly productive Santoy Gap deposit, and in general the project area is underlain by the same favourable host rocks and structural setting. Our team continues to apply local expertise gained from the Santoy Gap discovery, and experience on similar deposits, to increase the probability of another discovery. We are excited to begin exploration of the Fisher Project that doubles our land position near our existing high margin Seabee Gold Operation.”
Summary Terms of the Agreement
Under the terms of the Agreement, we will explore the Fisher project during a four-year option period. To earn a 60% interest in the Fisher project, Silver Standard is required to spend $4 million in exploration expenditures, including $400,000 for the 2016 exploration program conducted by Eagle Plains. In addition, we are required to make a $100,000 initial cash payment at closing and $75,000annual cash payments for each of the four years of the option period. Upon earning the 60% interest in the Fisher project, we will have a 90-day, one-time option to earn an additional 20% interest, for a total of 80%, by making a cash payment of $3 million, at which time an 80% / 20% joint venture will be formed to advance the property (the “Joint Venture”).
Eagle Plains will retain a 2.5% Net Smelter Return (“NSR”) royalty, subject to reduction on certain claims by underlying NSR agreements. Eagle Plains’ NSR may be reduced by 1% at any time upon payment of $1 million by the Joint Venture. In addition, Eagle Plains will receive advance royalty payments of $100,000 annually from the Joint Venture until commencement of commercial production.

Click here to read the full press release.