Feb 19 2021
Riley Gold Corp. has announced it has considerably increased the land position of its Tokop Gold Project, situated inside the Walker Lane Trend (Nevada), by 400% to more than 21 km2.
The major and tactical increase of the Tokop Project land package was developed to cover extra geological interpretation and was finished with the staking of extra 160 unpatented mining claims covering around 3,280 acres (or 13.3 km2) and by performing an option agreement on the Rattlesnake East property to buy extra unpatented mining claims encompassing around 922 acres (3.7 km2).
Currently, the Tokop Project area covers around 21 km2.
Since closing our Nevada property transactions (Tokop and Pipeline West/Clipper) in October 2020, we have completed a mapping and rock/chip sampling program at the Tokop Project in an effort to further identify the project geology and structural setting.
Todd Hilditch, CEO, Riley Gold Corp.
“We have sent over 110 samples to the assay lab, pending results, and have quadrupled the land package to cover an interpreted, larger than expected, mineralized system. We are extremely pleased with our findings at the Tokop Project to date and look forward to initiating our maiden drill program, which is expected to begin in late March/early April 2021,” added Hilditch.
Riley Gold combined the core of the Tokop Project in Q3/4 2020 via several non-dilutive purchase and option agreements with the help of landholders.
The choice to evidently extend the Tokop Project’s land package was due to Riley Gold’s broad review of available data from earlier work that incorporated a drill program that was successful and data produced more recently by field personnel, its initial surface rock samples verifying the high grade nature of the system and its re-interpretation of geophysical or drilling findings describing the prospects for a considerably huge mineralizing system than interpreted earlier.
Tokop could incorporate an intrusion-related gold system (IRG) analogous to those of Fort Knox type in the Tintina Gold Belt of central Alaska and adjacent parts of the Yukon. Dr Richard Sillitoe, who visited the project area two times earlier on behalf of a previous explorer, has noted the similarity.
Sheeted veins in a multi-phase, decreased, calc-alkaline granitoid intrusive, combined with extensive hydrothermal alteration might incorporate gold mineralization of considerable prospects. Shear-hosted veins have been found to stretch for around 2 km along strike.
Grades inside the sampled vein systems were as high as 34.4 grams per ton (gpt) gold and 36.0 gpt silver (historical sampling from previous owners).
Restricted assay returns of fresh sampling (9 out of 120 samples presented) have returned values above 16.0 gpt gold and 70.8 gpt silver. The leftover results of the sampling program will be published upon receiving all assay data.
Land Terms Overview
Riley Gold staked and listed 160 unpatented mining claims, which do not have any royalty, and has also signed an Exploration and Option Agreement with Mountain Gold Claims LLC for the Rattlesnake East Property, pertaining to which Mountain Gold has given Riley Gold the choice to purchase a 100% interest in a few unpatented mining (Mountain Gold Property) claims situated in Esmeralda County, Nevada.
The term for the Option Agreement is two decades, during which Riley Gold should incur minimal yearly lease payments. Obligations for the first year include a work commitment of US$5,000 and a cash payment of US$5,000 (paid).
Besides the above, Riley Gold completed a one-time payment of US$7,788 as a reimbursement for the 2021 BLM maintenance fees settled by MGC. There is no need for work commitments after one year.
Riley Gold might buy the property any time during the initial 10 years for US$500,000. If Riley Gold must maintain the lease for the entire two-decade period, cumulative payments of US$1,537,788 would have been paid to meet the purchase cost.
Once the purchase or option exercise is complete, Riley Gold shall grant a 3.0% NSR royalty to Mountain Gold on the Mountain Gold Property.