Angold Enters into Option to Acquire the Hope Butte GOLD Project, Oregon, USA
October 17, 2022
ANGOLD ENTERS INTO OPTION TO ACQUIRE THE HOPE BUTTE
GOLD PROJECT, OREGON, USA
Vancouver,
British
Columbia,
October
17,
2022
–
Angold
Resources
Ltd.
(TSXV:AAU,
FRA:13L,
OTCQB:AAUGF)
(“
Angold
”
or
the
“
Company
”)
is
pleased
to
announce
that
it
has
entered
into
an
agreement
with
Hightest
Resources,
LLC
(the
“
Vendor
”),
an
arms-length
party,
pursuant
to
which
it
has
been
granted
the
right
to
earn
a
100%
undivided
ownership
interest
in
the
Hope
Butte
Project
(“
Hope
Butte
”
or
the
“
Property
”), located in Malheur County, Oregon, USA
(the “
Acquisition
”).
Highlights:
●
Intact low-sulfidation epithermal gold system
with good surface grades of
~1 g/t Au.
●
At surface and predominantly oxide
mineralization
with infrastructure
nearby and favourable topography amenable to potential low-cost mining
operations
●
Untested high-grade potential
with historic
intercepts of up to 35.6 g/t Au
over 4.57m
●
Large alteration and structural footprint
measuring
at least 3 km x 2 km
which likely continues under cover.
●
Mineralization is open to expansion
where widely
spaced and shallow
historic drilling averaged depths of only 120 m and did not exceed 167 m.
●
Permittable regulatory environment
in eastern
Oregon, an emerging part of
the United States open to mineral development with a clear statutory path to
permit.
●
Favourable option terms
with low up-front costs
allowing for more
investment into project advancement and development
Historic
Drilling
1
:
104
known
historic
drill
holes
for
gold
exploration
between
1985
and
2012.
Historic
drilling
was
completed
by
Chevron
Resources,
Freeport,
Homestake,
1
Source of historical drill results: Hope Butte Project, Chevron Resources Company, 1989. Significant data
compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic
drilling can be verified.
Page
1
of
7
Horizon
and
Kenai
Resources.
Chevron’s
1980’s
era
historical
drilling
highlights
(see
footnote above for source and qualifications) include:
21-2:
88.4 m @ 0.890 g/t Au
21-10:
71.6 m @ 1.096 g/t Au
21-14:
96 m @ 0.822 g/t Au
21-26:
71.6 m @ 1.233 g/t Au
21-28:
112.8 m @ 0.959 g/t Au
21-32:
4.57 m @ 35.616 g/t Au (visible gold)
21-42:
3.04 m @ 10.548 g/t Au
21-43:
3.04 m @ 12.432 g/t Au
Angold’s
CEO,
Mr.
Adrian
Rothwell,
stated:
“This
acquisition
highlights
Angold’s
quality
project
pipeline
and
is
the
culmination
of
many
months
of
effort
by
the
Angold
team.
Hope
Butte
meets
our
target
strategy
to
expand
gold
ounces
in
many
ways
-
a
strong
jurisdiction,
historic
resource,
excellent
grades,
at
or
near
surface
mineralization,
and
low cost of entry, with shallow historic drilling and plenty of opportunities for expansion.”
Figure 1.
Regional Setting of the Hope Butte Project,
Oregon, USA. Figure after Edwards, 2013
2
.
2
Joel H. Edwards, Structural Controls of the Neal Hot Springs Geothermal System, Eastern Oregon, University of
Nevada, Reno, May 2013
Page
2
of
7
Figure 2.
Hope Butte Project Claims, Oregon, USA.
Option
Terms:
Pursuant
to
the
terms
of
the
Acquisition,
in
order
to
acquire
the
Property,
Angold
is
required
to
complete
the
following
cash
payments
and
share
issuances to the Vendor (the “
Minimum Payments
”):
On
the
parties’
execution
of
the
Agreement
US$50,000
Shares
of
value
US$25,000
First anniversary of Effective Date
US$75,000
Shares
of
value
US$50,000
Second anniversary of Effective Date
US$150,000
Shares
of
value
US$75,000
Third anniversary of Effective Date
US$200,000
No shares
Page
3
of
7
Fourth anniversary of Effective Date
US$250,000
No shares
Fifth
anniversary
and
each
succeeding
anniversary
of
the
Effective
Date
until
Angold
exercises
the
Option
and
closes
Angold’s
purchase
of
the
Property
for
total
proceeds
of
US$2,000,000
(the
“Purchase Price”).
US$250,000
No shares
The
cash
Minimum
Payments
provided
above
in
excess
of
US$725,000
shall
be
credited
against
the
cash
component
of
the
Purchase
Price
if
Angold
elects
to
exercise
the
Option.
Angold
shall
not
be
obligated
to
pay
the
cash
Minimum
Payments
after
the
exercise
and
closing
of
the
Option,
provided,
however,
that
Angold
must
pay
cash
Minimum
Payments
in
the
amount
not
less
than
US$725,000.00
and
deliver
all
of
the
common
share
Minimum
Payments
above
on
or
before
Angold’s
purchase
of
the
Property.
In
connection
with
the
Acquisition,
Angold
has
agreed
to
grant
the
Vendor
a
one-percent
royalty
on
net
smelter
returns
from
commercial
production
from
a
portion
of
the
mineral
claims comprising the Property.
The
number
of
the
common
shares
owing
to
the
Vendor
in
connection
with
any
particular
payment
will
be
calculated
using
the
posted
Bank
of
Canada
exchange
rate
and
the
thirty-day
volume
weighted
average
trading
price
of
the
common
shares
as
at
and
including
the
last
trading
day
prior
to
the
applicable
payment
date,
subject
to
such
minimum
price
as
may
be
permitted
by
the
TSX
Venture
Exchange.
All
common
shares
issued
to
the
Vendor
will
be
subject
to
a
four-month-and-one-day
statutory
hold
period
in
accordance
with
applicable
securities
laws.
No
finders’
fees
or
commissions
are
owing
by
the
Company
in
connection
with
the
Acquisition.
Completion
of
the
Acquisition,
and
the
issuance
of
any
common
shares
to
the
Vendor,
remains
subject
to
the
approval
of the TSX Venture Exchange.
Property
and
Geologic
Setting:
The
Property,
including
surrounding
staked
ground,
consists
of
298
contiguous
unpatented
BLM
claims
representing
approximately
5,713
acres
(2,312
Ha.)
located
in
south-eastern
Oregon,
approximately
46
km
north
of
Paramount’s Grassy Mountain deposit and within the Oregon-Idaho Graben.
Hope
Butte
is
a
large,
intact
hot
springs
gold-low-sulfidation
epithermal
deposit
hosted
in
Miocene-Pliocene
sedimentary
and
volcanic-volcaniclastic
rocks.
Regionally,
it
is
located
at
the
intersection
of
the
Oregon-Idaho
Graben
and
the
Vale
Fault
Zone,
an
area
with
extensive
past
and
currently
active
geothermal
activity.
Cinnabar
bearing
Page
4
of
7
opaline
silica
exposed
at
surface
was
discovered
and
mined
on
a
limited
scale
in
the
1950’s.
Chevron
Resources
explored
the
Project
area
for
oil
and
gas
and
precious
metals
in
the
1980’s,
followed
by
limited
work
through
the
early
1990’s
by
several
other
operators
which
included
Freeport,
Homestake,
Horizon
and
Kenai
Resources.
Essentially
all
work
on
gold
projects
in
the
region
ceased
in
the
mid
1990’s,
with
very
limited work being completed on the Project since that time.
Opaline
silica
exposed
on
Hope
Butte
and
elsewhere
in
the
Project
is
interpreted
to
be
sub-sinter
and
represents
an
erosional
level
10s
of
meters
below
paleosurface.
Kaolinite-opal
and
some
illite-smectite
alteration
has
been
mapped
historically.
These
alteration
features
coupled
with
the
shallow
nature
of
historic
drilling
and
a
few
high-grade
historic
drill
intercepts
suggest
the
potential
for
high
grade
epithermal
banded
veins
is
very
good
at
depth.
Initial
due
diligence
rock
sampling
by
Angold
staff
verified
the
existence
of
gold
bearing
alteration-mineralization
at
surface
consistent
with
historic
reported
grades
(Figure
3).
Outside
of
Hope
Butte
itself,
extensive
areas
of
steam
heated
and
silicic
alteration
within
the
Project
have
seen
very
little
historic
exploration
and
no
drilling.
Future
Angold
work
will
explore
these
areas
in
conjunction
with
work
to
expand
existing
mineralization
and
to
test
high
grade
vein
potential
below
existing mineralization.
Claim
Payments:
Under
the
Agreement,
the
Company
must
pay
all
applicable
federal,
state
and
local
claim
maintenance
fees.
Additionally,
annual
minimum
payments
of
US$10,000 must be made to the underlying owner on part of the claims.
Page
5
of
7
Figure 3.
Hope Butte due-diligence rock chip sample
results and alteration boundaries.
Qualified Person
Kenneth
Coleman,
CPG,
Exploration
Manager-North
America
and
a
Qualified
Person
under
NI
43-101
regulations,
has
reviewed
and
approved
the
scientific
and
technical
disclosures in the news release.
Data Verification
Mr.
Coleman
visited
the
Hope
Butte
Project
from
August
9
to
14,
2022.
The
purpose
of
the
site
visit
was
to
verify
the
style
and
extent
of
alteration,
for
the
location
of
historic
drill
holes,
selection,
taking,
and
registering
of
samples
and
the
transport
and
storage
of
the
samples,
to
observe
the
surface
geology
and
map
some
of
the
principal
structures,
contacts and outcropping veins.
Mr.
Coleman
has
verified
all
scientific
and
technical
data
disclosed
in
this
news
release
including
the
sampling
procedures
and
analytical
data
underlying
the
technical
information
disclosed.
Specifically,
Mr.
Coleman
designed
and
supervised
the
sampling,
delivered
the
samples
to
Paragon
Geochemical
in
Sparks,
Nevada
and
verified
the
Page
6
of
7
certified
assay
results
from
the
laboratory.
No
errors
or
omissions
were
noted
during
the
data
verification
process.
The
QP
has
reviewed
the
available
historical
data
and
information
regarding
past
exploration
on
the
Property
as
provided
by
Hightest.
After
further
field
verification
of
drill
collar
locations,
the
QP
is
confident
the
historical
drill
data
can be used for guidance in the planning of future work programs.
About Angold
Angold
is
an
exploration
and
development
company
targeting
large-scale
mineral
systems
in
the
proven
districts
of
the
Maricunga
Gold
Belt
in
Chile,
Nevada
and
Ontario.
Angold
owns
a
100%
interest
in
the
Dorado,
Cordillera
and
South
Bay-Uchi
projects,
and certain claims that append the optioned Iron Butte project.
ON BEHALF OF THE BOARD OF ANGOLD RESOURCES LTD.
“Adrian Rothwell”
Chief Executive Officer
Further
information
on
Angold
can
be
found
on
the
Company’s
website
at
www.angoldresources.com
and
at
www.sedar.com,
or
by
contacting
the
Company
by
email at
or by telephone
at (855) 917-4091.
This
news
release
shall
not
constitute
an
offer
to
sell
or
a
solicitation
of
an
offer
to
buy,
nor
shall
there
be
any
sale
of
these
securities
in
any
jurisdiction
in
which
an
offer,
solicitation
or
sale
would
be
unlawful
prior
to
registration
or
qualifications
under
the
securities laws of any such jurisdiction.
Neither the 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.
Forward
Looking
Statements:
This
news
release
contains
forward-looking
statements
and
forward-looking
information
within
the
meaning
of
applicable
securities
laws.
These
statements
relate
to
future
events
or
future
performance
and
include
expectations
of
the
resumption
of
trading
of
the
Company’s
common
shares
on
the
Exchange.
All
statements
other
than
statements
of
historical
fact
may
be
forward-looking
statements
or
information.
Forward-looking
statements
and
information
are
often,
but
not
always,
identified
by
the
use
of
words
such
as
“appear”,
“seek”,
“anticipate”,
“plan”,
“continue”,
“estimate”,
“approximate”,
“expect”,
“may”,
“will”,
“project”,
“predict”,
“potential”,
“targeting”,
“intend”,
“could”,
“might”,
“should”,
“believe”,
“would”
and
similar
expressions.
Forward-looking
statements
and
information
are
provided
for
the
purpose
of
providing
information
about
the
current
expectations
and
plans
of
management
of
the
Company
relating
to
the
future.
Readers
are
cautioned
that
reliance
on
such
statements
and
information
may
not
be
appropriate
for
other
purposes,
such
as
making
investment
decisions.
Since
forward-looking
statements
and
information
address
future
events
and
conditions,
by
their
very
nature
they
involve
inherent
risks
and
uncertainties.
Actual
results
could
differ
materially
from
those
currently
anticipated
due
to
a
number
of
factors
and
risks.
Accordingly,
readers
should
not
place
undue reliance on the forward-looking statements, timelines and information contained in this news release.
Page
7
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