Raindrop Announces Letter of Intent to Acquire 100% of Advanced-Stage Oxide Gold- Silver Exploration Project in Nevada
Raindrop Announces Letter of Intent to
Acquire 100% of Advanced-Stage Oxide Gold-
Silver Exploration Project in Nevada
Vancouver, British Columbia--(Newsfile Corp. - July 12, 2021) -
Raindrop Ventures Inc. (CSE: RAYN)
(FSE: RV0) ("Raindrop"
or the "
Company
") announces the signing of a letter of intent ("LOI") to
acquire the Jessup gold-silver exploration project (the "Project") in Churchill County, Nevada from JMX,
LLC, an arms-length private company ("Owner").
A 2018 Resource Development Associates technical
report, authored by Scott Wilson, SME-RM, CPG, includes a historic measured and indicated resource
containing 331,800 ounces gold equivalent ("oz") at 0.606 grams per tonne ("gpt") at a 69:1 silver-gold
ratio.
The Company has paid US$50,000 to the Owner for a 45-day exclusive due diligence period.
Highlights
2018 Resource Development Associates pit-constrained, heap leach model measured and
indicated resource of 17,041,500 tonnes containing 275,000 oz gold ("Au") at 0.501 gpt and
3,934,000 oz silver ("Ag") at 7.2 gpt.
The inferred resource is 1,709,100 tonnes with 25,000 oz Au
at 0.455 gpt and 195,000 oz Ag at 3.5 gpt;
349 historic drill holes that include numerous high-grade intercepts exceeding 5 gpt Au;
91% of the resource is oxide with leach test recoveries between 75% to 89% for Au and 14% to
40% for Ag;
the resource currently comprises four mineral occurrence areas that remain open in multiple
directions and geophysical studies show several target areas for new discoveries;
163 BLM claims with low or no royalty burden.
2021 Exploration Activities and Plans
strategic four-hole core drilling program completed in June 2021 with assay data pending;
database compilation, structural analysis, and geologic modelling;
permitting for new drill locations;
confirmation drilling;
IP survey;
land acquisition
Raindrop Venture Inc.'s Chief Executive Officer Alexander Kunz stated, "Jessup is an advanced stage
project located near Reno, Nevada with a historic gold-silver resource and excellent exploration
potential.
The Project is located within a four-square mile, oxidized, and hydrothermally altered area that
includes many old mines, prospects, intersecting radial and ring fractures, strong geophysical targets,
and an important number of high-grade gold drill intercepts.
We believe this area can host a one-to-two-
million-ounce gold-silver target."
The LOI provides Raindrop an option to acquire the Project over a three-year period with US$7.5 million
in Project expenditures, US$2.5 million in cash payments, and issuance of 19.99% of the issued and
outstanding shares of Raindrop.
Closing of the transaction contemplated by the LOI is subject to
completion of ongoing due diligence, verification of title, negotiation and execution of definitive
documentation, completion of financing on terms acceptable to Raindrop, and the receipt of any required
shareholder and regulatory approvals.
The transaction cannot be completed and an interest in the
Project cannot be acquired until these conditions are satisfied.
Jessup Gold-Silver Project
The Jessup area hosts a volcanic caldera complex with low sulfidation, epithermal gold-silver deposits
within widespread silicification controlled by faulting along the caldera margins. A blanket of pervasive
oxidation exists throughout the Project area.
Zones of deep structural oxidation have been interpreted
throughout the Project as well. The updated oxide model has increased the confidence in the 2018
resource estimate as compared to previous historic mineral estimates for the Project.
The Owner recently completed a four-core hole drilling program designed to increase geologic
information in certain areas.
The Project has had several historic campaigns of exploration and drilling
starting in the 1980s and in 2018 a pit-constrained, heap leach modeled measured and indicated and
inferred gold resource was estimated.
The Project consists of 163 BLM claims, options on private
ground including water rights and right of way for power, historical drill core and reverse circulation chips,
historical and current drilling and assay data, geophysical studies, right of ways, federal and state
permits, and other relevant data.
About half of the 163 claims have no royalty burden while the rest carry
a 1.6% increasing to 2.6% NSR.
Figure 1: Resource Areas, Targets and Historic Drill Holes
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/7160/89933_4b08cfc1e49ecb6d_001full.jpg
The Company is not treating the Project resource estimates as current and has not completed sufficient
work to classify these historical estimates as current mineral resources.
While the Company is not
treating these historical estimates as current, it does believe them to be indicative and the information
may be of assistance to readers.
Glen Peter Parsley, P. Geo. is a qualified person for the purposes of National Instrument 43-101 and has
reviewed and approved the technical content in this news release.
About Raindrop Ventures Inc.
Raindrop is led by a noted leader in mining and mineral exploration and was founded with the express
purpose of acquiring and exploring mineral properties in the current resource commodity cycle. Raindrop
is exploring its grassroots Clover Mountain gold property in Idaho and recently acquired six early-stage
gold exploration projects in Nevada from Liberty Gold.
The Company has a Boise, Idaho-based
technical team that is well positioned to conduct exploration in Idaho and Nevada.
Raindrop has a well-planned capital structure with 40,542,938 shares issued and outstanding and a
significant team and insider ownership. For more information, please visit
www.raindropventures.ca
.
ON BEHALF OF THE BOARD OF DIRECTORS
Alexander Kunz
President and Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT:
Alexander Kunz
President, Chief Executive Officer and Director
Raindrop Ventures Inc.
1507 - 1030 West Georgia Street
Vancouver, BC, V6E 2Y3
Telephone: (604) 428-6128
Facsimile: (604) 428-6430
email:
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Forward-Looking Information
This news release contains "forward-looking statements" or "forward-looking information" (collectively,
"forward-looking statements") within the meaning of applicable securities legislation. All statements,
other than statements of historical fact, are forward-looking statements and are based on the
assumptions, expectations, estimates and projections as of the date of this news release.
Forward-
looking statements are subject to a variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those expressed or implied by forward-looking
statements contained herein. There can be no assurance that such statements will prove to be accurate,
as actual results and future events could differ materially from those anticipated in such statements.
Raindrop disclaims any obligation to update any forward-looking statements, whether because of new
information, future events or otherwise, except as may be required by applicable securities laws.
Readers should not place undue reliance on forward-looking statements.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/89933