Nov 2 2017
TriMetals Mining Inc., is pleased to announce that its Nevada subsidiary, Gold Springs, LLC has entered into an agreement to lease six patented lode claims (the “Homestake Claims”) located at the northern extent of the Gold Springs project area within Nevada. Pursuant to the terms of the Lease Agreement, GS LLC is to lease the Homestake Claims for an initial period of 30 years and is to pay the lessor an initial rental payment as well as annual rental payments.
In addition, upon commencement of commercial production, GS LLC is to pay the lessor a 3% net smelter returns royalty (the “NSR Royalty”), which NSR Royalty is to be increased to (a) 3.5% if the average price per troy ounce of gold for the calendar quarter is greater than US$1,800, and (b) 4.0% if the average price per troy ounce of gold for the calendar quarter is greater than US$2,000 (the “Second NSR Increase”), subject to a minimum annual royalty payment of US$10,000. GS LLC has the right and option, prior to commencement of commercial production on the Homestake Claims, to buy out the Second NSR Increase for the sum of US$1 million, payable within 60 days from and after commencement of commercial production.
The Homestake Claims were historically worked as high-grade underground operations with undocumented production. The claims have not been subjected to modern exploration as they were last active prior to World War II.
Ralph Fitch, President and CEO of the Company stated, “TMI is excited to have completed the lease on the Homestake Claims as this area displays all of the geologic characteristics we see in the resources we have developed thus far at Gold Springs. This block of claims has never been subjected to modern-day exploration, including drilling, and we are looking forward to being the first group to test this exciting target. The system is exposed for 650 metres along strike and up to 400 metres in width with the potential to continue under post mineral cover and extends the entire 1.8 kilometre length of the claim area. With the addition of this 104 acre claim block TMI has yet another excellent target to explore moving forward.”
The Homestake Claims are located 1,000 metres east of the Gray Eagle resource area in Nevada. The claim block is 1.8 kilometres long by 200-400 metres wide. Historic mining exploited high-grade mineralization hosted in two stacked, banded quartz veins that are westward dipping and structurally controlled by north-south, Basin and Range related extension faults. This style of faulting occurs regionally across the Gold Springs area and serves as part of the controls within the Jumbo resource areas.
The stacked veins are each 2-4 metres wide and can be traced for 650 metres along strike before they are lost under post mineral cover. The system is well exposed in old mine cuts that span several hundred metres of strike length. Veins are surrounded by breccia and stockwork quartz vein zones which extend for up to 400 metres in width before they are lost under the post mineral cover. An old mine trench at the southernmost exposure of the vein systems exposes the breccias associated with the vein systems indicating that the system continues underneath the cover to the south. To the north, the vein trace is lost under post mineral tuffs, however the associated breccias outcrop 400 metres north of where the vein traces are lost, suggesting the mineralization may continue under the post mineral cover and extend for the full 1.8 kilometer length of the claims.
TMI will initiate surface mapping and sampling on the newly leased claims in the immediate future.
Source: http://www.trimetalsmining.com/