George Sanders, President of Goldcliff Resource Corporation, takes pleasure in announcing that the company has signed an agreement with Nevada Select Royalty, Inc., a fully owned subsidiary of Ely Gold Royalties Inc., to receive a 100% interest in the Nevada Rand property situated in Mineral County, Nevada, for a buying price of US$250,000, which has to be paid in four years.
A 2.5% Net Smelter Return royalty will be retained by Nevada Select upon production of any precious metals.
Initial due assiduity proved that Nevada Rand is a strong low- to intermediate-sulfidation epithermal model. The key structure can be determined along strike for more than 2 km by a series of mine dumps and adits and surface alteration. Other potential pits and adits toward south and north of the main structure indicate multiple parallel structures within the alteration corridor.
The Nevada Rand structure was mined on a small scale from time to time, starting with the sinking of a 50-ft shaft in 1909. The shaft was dug deeper many times over the years to its ultimate depth of 450 ft. Right of possession changed hands a few times over the decades, and there was lesser mining. Early engineering reports mention that nonprofessional development and under-capitalization were the reasons why the mine could not be a larger successful producer.
The information in many previous reports is not in agreement with 43-101 standards, has not been confirmed by a Goldcliff Qualified Person, and should not be depended upon. But the reports do offer convincing anecdotal evidence for the occurrence of shoots of high-grade gold (multi-ounce) and silver mineralization as per a low- to intermediate-sulfidation epithermal model.
The project has not undergone any drilling. In the mined area, the position and dip of the structure and slope of the hill permit the analysis of reported high-grade shoots with short drill holes of less than or equal to 100 m. The potential of the project as described in earlier reports can be analyzed for a cheap budget and is in line with a discovery aimed at exploration strategy. The payment schedule also meets this exploration project.
Goldcliff will make a payment of US$10,000 (paid) to Nevada Select once the agreement is in effect and an extraUS$15,000 six months from the date of effect. On every first, second, and third anniversaries of execution, Goldcliff will make a payment of US$25,000. A final payment of US$150,000 will be made on the fourth anniversary, and a 100% property interest is given to Goldcliff.
A Net Smelter Return royalty of 2.5% will be retained by Nevada Select. Goldcliff will make minimum advance royalty payments of US$10,000 on the first, second, and third anniversaries of signing and US$20,000 on subsequent anniversaries. Goldcliff deserves to buy down 1% for a payment of US$1,000,000.
Although the Pine Grove joint operation will continue to be the main aim of the company, the acquisition of Nevada Rand represents a significant addition of discovery potential to the Nevada portfolio. Overall, Goldcliff is capable of earning a 100% interest in Nevada Rand.