Roughrider Signs Option Agreement to Acquire Nevada Gold Project
Roughrider Signs Option Agreement to Acquire Nevada Gold Project
VANCOUVER, BC / ACCESSWIRE / June 22, 2017 / Roughrider Exploration Limited (TSX-V:
REL) ("Roughrider" or the "Company"). Further to its News Release dated April 25, 2017,
announcing that it had entered into a letter for an option to acquire the Iron Butte oxide gold-silver project
located along the western margin of the Battle Mountain-Eureka Gold Trend in Lander County (the "Iron
Butte Project"), the Company is pleased to announce that it has signed an Option Agreement (the
"Option Agreement") granting it the right to acquire a 100% interest in the Iron Butte Project from an
arm's length private vendor.
Iron Butte Property Option Agreement
Pursuant to the terms of the Option Agreement, Roughrider can earn a 100% interest in the Iron Butte
Project by making a total of $1,000,000 USD in cash payments and issuing 1,500,000 common shares in
Roughrider over 6 years, in accordance with the schedule set out in the table, below. If a production
decision is made regarding Iron Butte, Roughrider will pay a further $1,000,000 USD and issue an
additional 500,000 Roughrider common shares. The vendor will also receive a $500,000 USD payment
for every 1,000,000 ounces of gold production and $500,000 USD payment for every 10,000,000 ounces
of silver production at Iron Butte. The vendor will also retain a 2.5% NSR subject to buy-down provisions
of $1,000,000 USD for the first 1% and $1,000,000 USD for an additional 0.5% (together, the
"Repurchase Payments") until the sixth (6th) anniversary of the date of the Option Agreement. After the
sixth anniversary of the Option Agreement, the Repurchase Payments shall be adjusted for inflation as
reflected by the United States Federal Consumer Price Index. From the date on which the option is fully
exercised until the commencement of commercial production on the Iron Butte Project, the Company will
pay the vendor advance royalty payments of $2,000 per month.
All Roughrider shares issuable under the transaction will be subject to a hold period of four months and
one day from the date of issuance.
Cash
(USD)
Common Shares
Non-refundable cash deposits paid prior to signing
Option Agreement $10,000 Nil
Within 5 Days of TSX-V Approval of Definitive
Agreement $15,000 75,000
1st Anniversary of TSX-V Approval $50,000 125,000
2nd Anniversary of TSX-V Approval $75,000 200,000
3rd Anniversary of TSX-V Approval $100,000 250,000
4th Anniversary of TSX-V Approval $150,000 350,000
5th Anniversary of TSX-V Approval $200,000 500,000
6th Anniversary of TSX-V Approval $400,000 Nil
Total $1,000,000 1,500,000
The Option Agreement is subject to certain customary conditions including without limitation receipt of
all necessary corporate and regulatory, including the approval of the TSX Venture Exchange.
Iron Butte Property
Gold and silver mineralization and silica alteration has been delineated on the Iron Butte property within a
north-northeast trending area 2,900 metres long and 1,300 metres wide. Past exploration, focused
primarily on the Red Ridge and North Zones, includes 225 reverse circulation ("RC") drill holes totalling
34,029 metres completed between 1980 and 2009 by Homestake Mining, Cameco, Newcrest, Newmont
Mining, and C3 Resources. Work was also undertaken on the property by Aurelio Resources Corporation
("Aurelio") in 2009 and Alpaca Resources Inc. ("Alpaca") in 2010, the latter of which commissioned an
unpublished National Instrument 43-101 ("NI 43-101") formatted report by Caracle Creek International
Consulting Inc.
At the Red Ridge Zone, oxide gold and silver mineralization has been delineated from near surface to
depths averaging roughly 120 metres. Sulphide mineralization has been outlined extending below the
oxide mineralization a further 150 metres. Higher grade gold and silver identified at the Red Ridge and
North Zones is associated with fault controlled jasperoid bodies and the contact between host
Pennsylvanian and Permian sedimentary rocks of the Cedars Sequence and overlying Tertiary volcanic
rocks. Mineralization exhibits characteristics typical of epithermal-style veins with some indications for
Carin-type sediment-hosted mineralization.
Historical Resource Estimate
Two historical resource estimates have been calculated for the Red Ridge and North Zone. Utilizing data
partitioned into 5,222 six metre, mine bench-scale sample composites from 211 RC drill holes, Aurelio
(Detra, 2009) outlined a resource estimate for gold and silver that did not partition between oxide and
sulphide mineralization (Table 1). Alpaca (Cleath, 2010) delineated both oxide and sulphide resource
estimates for gold only using sectional ore boundaries and a 0.3 g/t gold cut-off (Table 2). Both resource
estimates were undertaken "in-house" by Aurelio and Alpaca, respectively.
Table 1: 2009 Unclassified Historical Resource Estimate
Cut-off
(ppm)
Tons
(short)
Calculated
Tonnes
(metric)
Au
(ppm)
Ag
(ppm)
Total Au
(oz)
Total Ag
(oz)
0.100 225,826,300 204,866,232 0.204 3.652 1,484,166 26,513,455
0.250 47,555,637 43,141,761 0.372 6.824 568,590 10,432,796
0.333 21,180,858 19,214,957 0.480 9.065 326,780 6,173,156
0.400 12,414,366 11,262,127 0.563 11.027 224,542 4,401,081
0.500 6,175,529 5,602,347 0.685 14.808 136,005 2,940,117
1.000 387,178 351,242 1.157 14.080 14,402 175,269
Table 2: 2010 Unclassified Historical Resource Estimate*
Zone Type Tons
(short)
Calculated Tonnes
(metric)
Au
(ppm)
Total Au
(oz)
RED RIDGE Oxide 14,072,175 12,766,066 0.664 300,376
Sulphide 9,661,356 8,764,637 0.515 160,410
Total 23,733,531 21,530,703 0.604 460,786
NORTH Oxide 641,179 581,668 0.656 13,523
Sulphide 6,182,878 5,609,014 0.663 131,877
Zone Type Tons
(short)
Calculated Tonnes
(metric)
Au
(ppm)
Total Au
(oz)
Total 6,824,057 6,190,682 0.663 145,400
TOTAL Oxide 14,713,354 13,347,734 0.664 313,899
Sulphide 15,844,234 14,373,651 0.574 292,287
Total 30,557,588 27,721,385 0.617 606,186
*Resource calculated using a 0.3 g/t Au cut-off.
A Qualified Person has not completed sufficient work to verify these resource estimates or to classify the
resource estimates as current mineral resources and the issuer is not treating the historic resource
estimates as current mineral resources. These estimates are unclassified and do not use the categories
("inferred," "indicated," or "measured" mineral resource, or "probable," or "proven" mineral reserve) set
out in Sections 1.2 and 1.3 of NI 43-101 as defined by the Canadian Institute of Mining, Metallurgy and
Petroleum. These resource estimates are only relevant to obtain a reference to gold and silver
mineralization potential present on the property. Additional drilling would need to be completed in order
to upgrade and verify mineral resource estimates.
Exploration Potential
The Red Ridge and North Zones remain inadequately tested. Historic drill holes are predominantly
vertical, possibly inadequately testing the structures that control the higher grade mineralization. Potential
exists to identify a higher grade core zone at Red Ridge, as indicated by hole NC-31 which ran 7.48 g/t
gold over a 1.52 metre intercept. Numerous other areas on the Iron Butte property host significant gold
that have only been partially tested to date, notably to the east, north, and south of the Red Ridge and
North Zones, where anomalous gold and mercury have been detected in rock samples. No trenching or
drilling has been completed on a ridge 300 metres north of the North Zone where four rock samples,
spread roughly 100 metres apart, produced assays between 0.21 g/t and 1.44 g/t gold.
Subject to permitting and receipt of TSX Venture Exchange approval for the Option Agreement,
Roughrider proposes to undertake a program of remapping, detailed lithological and grid controlled
surface soil sampling where data gaps exist to establish a robust geologic model on which future drilling
can be planned. This initial phase of work will also focus on the Tertiary volcanic and basement
sedimentary lithological contact, identifying areas where it is cross-cut by later structures.
David Tupper, P. Geo. is a qualified person within the meaning of NI 43-101, and has read and approved
the technical aspects of this release.
About Roughrider Exploration Limited
Roughrider's focus is exploring the 131,412 hectare (324,728 acre) Genesis uranium project located in the
Wollaston-Mudjatik geological trend extending northeast from Saskatchewan's Athabasca Basin.
Roughrider has the option to earn an 85% interest in Genesis from Kivalliq Energy Corporation.
Roughrider has recently signed an option agreement to acquire a 100% interest in the Iron Butte oxide
gold-silver project located along the western margin of the Battle Mountain-Eureka Gold Trend in Lander
County, Nevada.
For further information, please contact:
Scott Gibson
Chief Executive Officer
604-697 0028
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this press release, including any
information as to our strategy, projects, plans or future financial or operating performance, constitutes
"forward-looking statements." All statements, other than statements of historical fact, are to be
considered forward-looking statements. Forward-looking statements are necessarily based on a number
of estimates and assumptions that, while considered reasonable by the company, are inherently subject to
significant business, economic, geological and competitive uncertainties and contingencies. Although the
Company believes the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance. Known and unknown
factors could cause actual results to differ materially from those projected in the forward-looking
statements. Such factors include but are not limited to: fluctuations in market prices, exploration and
exploitation successes, continued availability of capital and financing, changes in national and local
government legislation, taxation, controls, regulations, expropriation or nationalization of property and
general political, economic, market or business conditions. Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to differ materially from those expressed or
implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future performance and, therefore, readers are advised
to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in this
press release, or incorporated by reference, are qualified by these cautionary statements. We do not
assume any obligation to update any forward-looking statements.
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Securities Act of 1933, as amended (the "U.S. Securities Act"), have been offered and sold outside the
United States to eligible investors pursuant to Regulation S promulgated under the U.S. Securities Act,
and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a
U.S. Person (as such term is defined in Regulation S under the United States Securities Act) unless the
securities are registered under the U.S. Securities Act, or an exemption from the registration
requirements of the U.S. Securities Act is available. Hedging transactions involving the securities must
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SOURCE: Roughrider Exploration Limited