Pegasus Resources (TSXV: PEGA) has entered into an option agreement this morning to acquire property in Nevada. Referred to as the Millionara Property, the company may acquire up to a 100% interest in the gold property from that of National Treasure Corp.
The Millionara property is located north of Elko, Nevada, within the Independence Gold Trend, and contains excellent road access and nearby utilities. Covering 630 acres, the property is referred to as an intermediate stage exploration project with historical exploration conducted in the late 1980’s reportedly intersecting 19.8 metres of 3.63 g/t gold and 21.3 metres of 4.05 g/t gold in two separate holes.
The property sits just 25 kilometres northwest of the Jerritt Canyon Gold Mine, which was recently sold for $470 million transaction. The property itself is currently being analyzed for both epithermal and Carlin-type deposits, with several drill tested gold mineralization zones currently slated as being open for expansion.
Two main zones have been identified as being on the property, which include the Range Front Target Area and the Upper Vein Area. The Range Front Target follows the Range Front fault, which is where the highlighted drill results come from. Historical data suggests the fault was not sufficiently drill tested, with additional results including 73.7 metres of 0.46 g/t gold, and 68.7 metres of 0.21 g/t gold, suggesting Carlin-type mineralization.
The Upper Vein Area meanwhile was the focus of exploration in 2010 and 2011 by Ashburton Ventures. Located 600 metres east of Range Front, a 640 metre long trend was defined with drilling intersecting 1.2 metres of 1.69 g/t gold and 1.2 metres of 6.94 g/t gold. Seven surface samples meanwhile assayed higher than 40 g/t gold.
Pegasus has the option to acquire to the property for a total price of US$575,000 and 1.5 million shares of the issuer, payable over a 36 month period. The first payment of $25,000 is to be paid on the effective date of the agreement, with 750,000 shares to be issued within five days of TSX Venture approval. Cash is then to be paid in increasing increments of $25,000 every six months, until the thirty sixth month wherein the remaining US$275,000 payment is to be made. The claims are also subject to a 3% NSR.
Pegasus Resources last traded at $0.08 on the TSX Venture.
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