Mar 6 2014
Elissa Resources Ltd. (the "Company" or "Elissa") wishes to announce it has successfully optioned and acquired 104 gold lode claims in two separate blocks strategically located in two of the many gold mining camps in the historically famous Black Hills gold province in South Dakota, USA. Black Hills is the second largest producing gold district in the continental USA, surpassed only by the Carlin District in Nevada.
The district includes the famous Homestake Mine which yielded more than 40 million ounces of gold averaging 0.3 opt (troy ounces per short ton) over its 125-year production history. Homestake is considered to be the largest iron formation-hosted gold deposit in the world.
Paul McKenzie, President and CEO of Elissa Resources stated today that: "Elissa Resources has now successfully acquired a very strong and geologically strategic footprint inside the second most prolific gold district in the United States."
Elissa's new acquisitions include the South Standby property, 16 miles (26 km) south of the Homestake Mine, and the False Bottom Property, only 3 miles (5 km) west-northwest of the Homestake Mine and immediately north of Goldcorp's currently producing Wharf Mine. The South Standby property consists of 18 unpatented lode claims, including 8 claims staked by Elissa and 10 claims optioned from BHB Partners of Newcastle, Wyoming, all 18 claims together totalling approximately 290 acres (117 hectares). The claims cover a significant part of the historical Rochford district, a former notable gold camp gold comprised of several old mines and various scantly explored occurrences. Although historical records are somewhat vague and incomplete, it appears the largest operation in this old district was the Standby Mine which adjoins the north edge of Elissa's South Standby claim block. The Standby Mine, inactive since about 1910, is thought to have produced 25,000 to 50,000 tons of ore averaging 0.20 to 0.25 opt gold. Gold at the mine is localized along a tight fold structure that plunges SSE toward the South Standby claims and is hosted by Proterozic-age metamorphosed iron formation. The style and occurrence of the gold mineralization is very similar to the Homestake Mine and many geologists have, in fact, suggested that the host iron formation in the Rochford District and in the Homestake Mine are likely the same.
The Homestake-like iron formation extending southward across Elissa's South Standby claim block consists of a structurally thickened belt of pyrrhotite-rich, cummingtonite-grunerite schist. It is exposed intermittently for at least 4,000 feet (1,200 m) along the strike of a NNW trending pair of tight folds accompanied by a major subparallel shear zone. Data available from BHB Partners, indicates the property was first explored by Getty in 1983-85, then by Noranda in 1988-90. During these campaigns, rock samples (probably grab samples) collected along the South Standby zone sporadically returned anomalous gold values up to 0.32 opt. . Additionally, soil sampling identified two very strong arsenic anomalies, one 3,000 feet (910 m) long, the other 2,500 feet (760 m) long. Arsenopyrite (iron arsenic sulfide) is a common associate with Homestake-type mineralization, so arsenic serves as a valuable guide to gold mineralization in the gold camps of the region. Getty and Noranda also did a limited amount of drilling (5 holes by each company) to examine one of the arsenic-laden fold structures, intersecting short intervals (5 to 28 feet/1.5 to 8.5 m) of 0.02 to 0.152 opt gold (Note: These are the reported down-hole lengths of the mineralized intervals; true widths of mineralization are currently unknown). The second fold, a synformal-type structure more analogous to the richest gold-bearing structures in the Homestake mine, was overlooked and not tested. Old in-house company reports indicate both companies were encouraged by these first-pass exploration results, but for various corporate-level reasons not related to the project itself, they both abandoned activities in the Black Hills province and consequently abandoned the South Standby project. The project has not been explored since.
Elissa's False Bottom property is in one of the more strongly mineralized parts of the region, a prolific district located only 3 miles (5 km) northwest of the Homestake Mine. The property consists of 86 newly staked lode claims, including 24 staked by BHB Partners and 62 staked by Elissa, together comprising a substantial claim block totalling approximately 1,214 acres (492 hectares), strategically surrounded by several modern-day gold deposits and operations. The property lies immediately north and partially adjoins Goldcorp's active Wharf Gold Mine, which has produced more than 2 million ounces of gold since 1986, and is immediately south and southeast of Barrick's inactive Richmond Hill Gold Mine (currently in care and maintenance). Parts of the False Bottom property in the past were intermittently explored for base metals (mainly molybdenum) related to young (Cenozoic-age) intrusive igneous rocks found on or near the property. However, new information gathered by BHB Partners indicates that the intrusives, at least in the northern part of the property, are tabular sill-like bodies underlain at relatively shallow depth by much older, metamorphosed and tightly folded iron formation of probable Proterozoic-age. It is very similar and perhaps equivalent to the gold-bearing Homestake Formation. A few historical drill holes in the False Bottom area are known to have intersected the iron formation, encountering intervals of low grade gold, but never attracted follow-up interest. The iron formation in the False Bottom area essentially has been largely ignored or overlooked by past exploration.
Elissa has entered into an option agreement dated February 24, 2014 with BHB Partners ("BHB"), pursuant to which, in consideration for a 100% interest in the South Standby Property, Elissa has agreed to issue an aggregate of 800,000 shares and make cash payments of an aggregate of US$170,000 to BHB over a four period of which 300,000 shares and an initial cash payment of US$30,000 will be completed immediately, subject to the approval of the transaction by the TSX Venture Exchange. One year following the date of the option agreement (the "Agreement Date") Elissa has agreed to pay BHB an additional US$35,000; two years following the Agreement Date an additional US$45,000, three years following the Agreement Date an additional US$60,000 and finally four years following the Agreement Date issue 500,000 additional shares of Elissa Resources. All share issuances to be completed pursuant to the option agreement will be issued to the individual partners of BHB in proportions as directed by BHB. Upon successful conclusion of the Agreement, Elissa Resources agrees to grant BHB a net smelter return royalty (NSR) of 2.0% on the commercial production from the South Standby Property while reserving the right to purchase up to 80% of the royalty for the aggregate sum of $1,000,000. Elissa has agreed to make advance royalty payments of US$50,000 per year in the event commercial production has not yet been achieved on the South Standby property by January 1, 2018.
The technical information outlined in this news release, has been reviewed and approved by Mel Klohn, PGeo, Director of Elissa Resources, and a Qualified Person as defined in the current National Instrument 43-101.
On behalf of the Board of Directors of Elissa Resources Ltd.
Source: https://nexoptic.com/