FULL DISCLOSURE: The Deep Dive is long the equity of Advanced Gold Exploration.
Advanced Gold Exploration (CSE: AUEX) bolstered their portfolio this morning, with the firm announcing that they have entered into a mineral property purchase and sale agreement to acquire an interest in the Silver Belle Project.
The arrangement will see Advanced Gold Exploration become the sole owner of the property, which is found in Eureka County, Nevada. The property is comprised of 100 unpatented lode mining claims covering 2,000 acres within the Eureka Mining District. The region is known for high grade carbonate replacement deposit mineralization, as well as for historic silver-lead-zinc production.
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“Data interpreted of the Project has confirmed the site’s status as a “rediscovery” target, highlighted by documented historical production of silver. [..] Despite its location in one of the world’s most productive mining jurisdictions, the Project has seen no modern exploration, with all historical work restricted to the shallow oxidized cap of a much larger, untested potential CRD system,” commented Arndt Roehlig, President of Advanced Gold.
While no modern exploration has taken place at the property, Silver Belle was subject to historic underground production, with the last documented production occurring in 1937. A 21 ton shipment sent that year from the property is said to have returned silver grades of 1,611 g/t, along with 37% lead, 10% zinc and 1% copper. The property is also said to be enriched with antimony, with assays returning values of up to 3,000 g/t.
Infrastructure on site is said to include a shaft, multiple adits, and 500 feet of underground development, while the deeper sulphur-rich CRD core remains untested. Mineralization is said to be wide-open, with clear expansion potential along strike to the north and south, as well as down-dip to the west.
Under the terms of the transaction, Advanced Gold is set to pay an aggregate of $175,000 in cash across three payments for the property, and issue the vendors an aggregate 1.5 million shares upon closing. A further 1.5 million shares are to be issued on the six year anniversary of the closing date. A 1.5% NSR royalty has also been issued to the vendors in connection with the transaction.
Advanced Gold Exploration last traded at $0.25 on the CSE.
FULL DISCLOSURE: Advanced Gold Exploration is a long investment of Canacom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
