Spey Options the Silver Basin Property, in British Columbia
SPEY RESOURCES CORP.
1315 Moody Avenue
North Vancouver, BC V7L 3T5
CSE: SPEY
For Immediate Release NR-03-2020
SPEY OPTIONS THE SILVER BASIN PROPERTY,
IN BRITISH COLUMBIA
(July 30, 2020, Vancouver, B.C., Canada) – Spey Resources Corp. (“Spey” or the “Company”) is pleased to announce that it
has entered into an Option Agreement (the “Agreement”) to acquire a 100% interest from John (Jack) Denny, Robert (Bob)
Denny and John Mirko in the Silver Basin Property (the “Property”) located in the Revelstoke Mining Division , of southern
British Columbia.
The Company believes the Property has potential to host high grade gold-silver and possibly cobalt-nickel deposits. For the
first time in over 100 years, the recently consolidated Property now encompasses more than 8 km of a prospective trend
that includes numerous known mineral occurrences of gold, silver, lead and zinc hosted in veins and larger zones of
brecciation.
The Property has reportedly been explored since before 1890 and more recently the Denny family of Salmo, BC has been
further exploring the Property since the 1970s. Historical surface rock sampling completed in 1946 on the Foggy Day target
area reportedly returned assays of 41.14 g/t Au and 116.6 g/t Ag across a 0.94 meter thick quartz sulphide vein. Two grab
samples from a 2nd vein reportedly assayed 65.1 g/tonne Au, 205.7 g/t Ag and 92.6 g/tonne Au, 603.4 g/tonne Ag. At the
Silver Basin target, a 7 ton sample shipped to the Trail smelter assayed 1.14 oz/ton Au, 55 oz/ton Ag, 27% Pb and 3% Zn. A
grab sample from that vein across 0.45 meter assayed 161.2 oz/ton Ag. A 1,000 meter diamond drill program to test down
dip on the Morning Star and IXL veins was recommended by Taiga Consultants Ltd. (R. Chisholm, 1988) but reportedly never
carried out.
In addition, cobalt and nickel values have been found to occur in an ultramafic intrusion where a grab sample assayed
0.20% cobalt and 0.30% nickel, adding a new dimension with compelling possibilities of outlining a new target. The British
Columbia Geological Survey Branch gave notice on February 22, 2019 that it intends to investigate the newly discovered
cobalt potential of the Property and the immediate area known to host other ultramafic host rocks and geology favorable
for hosting cobalt and nickel mineralization.
“We are excited to enter into the Silver Basin Option Agreement based on early indications of high grade gold and silver
mineralization in this historic mining district “, stated David Thornley-Hall, President of Spey Resources Corp. “We intend to
mobilize an aggressive work program as part of our strategy to evaluate the highly prospective zones in this clearly under
explored area.”
Beginning immediately, the company will focus exploration activities on expanding the known gold and si lver occurrences
by mapping, prospecting and sampling of the property.
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Cautionary Language: the results quoted herein are from previous historical exploration summary documents, geological
reports and BC Government reports, and have not been verified by a Qualified Person. The exploration work and results
appear to have been done in an appropriate technical standard however, and Spey’s Qualified Person believes them to be
reliable. Spey will be resampling certain surface outcrops as part of its due diligence work .
References:
1.) Parker, A., P. Eng., BCDM Assessment Report #07324, 1979, for American Chromium Ltd.
2.) Chisholm, R., BCDM Assessment Report #17446, 1988, for Courageous Exploration Ltd.
3.) McDougall, B.W.W., P. Eng., Winslow Group & Associated Properties, 1949, for Sunshine Lardeau Mines Ltd.
4.) BC Department of Mines, 1914 Annual Report.
Option Agreement Terms
Under the terms of the Agreement, Spey has the option to acquire an undi vided 100% interest in and to the Property, free
and clear of all liens, charges, encumbrances, claims, rights or interest of any person, with th e exception of a 2.0% Net
Smelter Return (“NSR”) payable to the Vendor. The Option is exercisable by Spey:
a) paying an aggregate $386,000 as follows:
i) $6,000 upon signing; (paid)
ii) an additional $20,000 on or before July 1, 2021;
iii) an additional $80,000 on or before July 1, 2022;
iv) an additional $80,000 on or before July 1, 2023;
v) an additional $200,000 on or before July 1, 2024; and
b) incurring $10,000 work expenditure on the Property before October 30, 2020; and
c) issuing an aggregate 2,000,000 common shares in the capital of Spey as follows:
i) 100,000 shares on approval of the Option by the Canadian Stock Exchange;
ii) an additional 200,000 shares on or before July 1, 2021;
iii) an additional 200,000 shares on or before July 1, 2022;
iv) an additional 500,000 shares on or before July 1, 2023;
v) an additional 1,000,000 shares on or before July 1, 2024.
Upon commencement of commercial production, and subject to Exchange policies in effect at the time, Spey shall issue an
additional 1,000,000 common shares in the Company. At such time, the Property will also be subject to an underlying 2.0%
Net Smelter Return. Spey is entitled, at any time, to purchase 80% of the Net Smelter Return by making a single payment of
$2,000,000 to the Property vendors.
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Financing
The Company intends to arrange a non-brokered private placement offering up to 6,000,000 units at a price of $0.10 per
unit to raise gross proceeds of up to $600,000. Each unit will be comprise d of one common share and one share purchase
warrant of the Company. Each warrant will entitle the holder to acquire an additional common share of the C ompany at an
exercise price of $0.22 per share for a period of two yea rs from the closing date of the private placement. In conjunction
with the financing, the Company may pay a finder's fee to eligible persons in compliance with applicable securities laws a nd
exchange policies. The proceeds of the private placement will be used to advance exploration of the Property and general
working capital. All securities will be subject to a four-month plus one day hold period from the closing date.
The warrants are subject to an accelerated expiry date, which comes into effect when the trading price on the Canadian
Securities Exchange of the Company's common shares c loses at or above $0. 40 per share during any 10- day-consecutive-
trading-day period commencing four months plus one day after the date of issuance of the warr ants. In such event, the
Company may give an expiry acceleration notice to warrant holders and the expiry date of the warrants will be 30 days from
the date of the notice.
Qualified Person
Spey’s Qualified Person, Robert (“Bob”) Lane, MSc., P.Geo., is a Qualified Person as defined by National Instrument 43 -101,
“Standards of Disclosure for Mineral Deposit s” and has reviewed and approved the technical information contained in thi s
news release.
On behalf of the Board of Directors of SPEY RESOURCES CORP.
“David Thornley-Hall”
David Thornley-Hall, President and Director
For additional information on the Company or its Project, please visit the Company’s website: www.speyresources.ca or
email: [email protected]
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE ) nor any other
regulatory authority accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS:
This news release may contain forward-looking information within the meaning of applicable securities laws (“forward-
looking statements”). Forward-looking statements are statements that are not historical facts and are generally, but not
always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” ‘projects,” “potential”
and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Information inferred
from the interpretation of drilling results may also be deemed to be forward-looking statements, as it constitutes a
prediction of what might be found to be present when and if a project is actually developed. These forward -looking
statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially
from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal
prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable
terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of
work will not fulfill expectations and realize the perceived potential of the Company’s propert ies; risk of accidents,
equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost
overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting
from Spey’s operations and other risks and uncertainties. Any forward-looking statement speaks only as of the date it is
made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information, future events or res ults or otherwise.