Stuhini Announces Option of Red Hills Silver Property
Stuhini Announces Option of Red Hills Silver
Property
VANCOUVER, BC
,
Oct. 28, 2024
/CNW/ - Stuhini Exploration Ltd. ("
Stuhini
" or the
"
Company
") (TSXV: STU) (OTCQB: STXPF) is pleased to announce that it has entered into an
option agreement (the "
Agreement
") with Red Hills Project LLC ("
RHP
") dated
October 25, 2024
(the "
Effective Date
") whereby Stuhini can acquire a 100% interest in RHP's Red Hills Property
("
Red Hills
" or the "
Property
"), located in
White Pine County, Nevada
(the "
Option
").
Red Hills is a polymetallic, carbonate replacement deposit (CRD) target located approximately 68
kilometres (km) northeast of
Ely, Nevada
, in the central portion of the Red Hills in
White Pine County
.
The Property comprises 27 unpatented lode claims, covering 557.8 acres and is located in a
favourable structural and lithostratigraphic setting. Access to the Property from
Ely
is approximately
137 km by paved and county-maintained roads.
From 1908-1918, the Property had limited historic production from gossan pods accessed by three
adits, totalling 229 ounces (oz) of gold (Au), 35,029 oz silver (Ag), 550 lbs of copper (Cu) and
789,782 lbs of lead (Pb). There has been limited drilling on the Property with the best historic result
being 17 metres (m) of 129.7 grams per tonne (g/t) Ag, 0.15 g/t Au, 2.42% Pb, 0.92% zinc (Zn),
including
12m
of 179.2 g/t Ag, 0.20g/t Au, 3.29% Pb, 1.18% Zn.
The lithostratigraphic units include the Notch Peak carbonates, which are unconformably overlain by
Pogonip Group carbonates. The Eureka Quartzite,
Hanson Creek
and
Lone Mountain
dolostones
overlay the latter lithostratigraphic group. The majority of the mineralization is hosted in Pogonip
Group carbonates.
Alteration in the carbonates is significant and includes widespread recrystallization of the limestones,
local calc-silicate alteration, extensive hematite staining, the formation of jasperoids along structures
and calcite veining possibly related to decalcification at depth.
Stuhini President and CEO
Dave O'Brien
commented: "After a long search, we are delighted to
obtain on option on the Red Hills Property, which attracted strong interest from our team ever since
the initial data review. We are also pleased to obtain this Property on reasonable and non-dilutive
terms as we pursue strategic options on our flagship Ruby Creek molybdenum deposit. Given the
apparent footprint of the CRD target, the Company has dispatched staking crews and a geological
team to expand the current land position. With the silver market starting to generate strong investor
interest, particularly in the southwest
USA
, we believe this opportunity has the potential to create
significant shareholder value."
During the 30-year term of the Agreement, Stuhini must make the following minimum payments (until
the commencement of commercial production on the Property) (the "
Minimum Payments
") and
incur the following qualified expenditures (the "
Qualified Expenditures
") to keep the Option in good
standing:
Minimum Payments
Payment Dates
Qualified Expenditures
Effective Date
US$20,000 plus reimbursement
of BLM mining claim
maintenance fees and Nevada
mining claim fees in the amount
of $5,736.
Nil
1st anniversary of Effective Date
US$25,000
US$75,000
2nd anniversary of Effective Date
US$30,000
US$200,000, including not less
than 3,000 feet of drilling (core or
reverse circulation)
3rd anniversary
US$40,000
US$200,000, including not less
than 4,000 feet of drilling (core or
reverse circulation)
4th and each succeeding
anniversary of the Effective Date
until the Commencement of
Commercial Production
US$50,000
Nil
The only committed obligations are the
US$20,000
cash payment on the Effective Date and the work
commitment to incur
US$75,000
in qualified expenditures in the first year. The balance of the
Minimum Payments and Qualified Expenditures are all at the Company's election should it wish to
maintain the Option after year 1.
In addition to the Minimum Payments, Stuhini must make certain milestone payments ("
Milestone
Payments
") as follows:
1
.
a one-time payment of
US$250,000
upon completion of a technical report on the Property
disclosing a resource containing at least 250,000 troy ounces of gold equivalent;
2
.
a one-time payment of
US$500,000
(the "
Feasibility Report Milestone Payment
") on
completion of a positive feasibility report on the Property;
3
.
a one-time payment of
US$1,000,000
on commencement of commercial production;
Stuhini may exercise the Option at any time by making a cash payment of
US$400,000
(in addition
to any Minimum Payments and Milestone Payments already made) and completing the cumulative
Qualified Expenditures. Upon exercise of the Option, RHP will be entitled to a 2.5% gross returns
royalty (the "
Royalty
") on the Property, subject to Stuhini's right to purchase 60% of the Royalty
(representing 1.5% of the gross returns) for
US$1,500,000
within 30 days of the Feasibility Report
Milestone Payment accruing. Minimum Payments made after the exercise of the Option shall be
credited against the Royalty payments. The technical disclosures contained in this news release
have been approved by Ehsan Salmabadi, P.Geo., and VP Exploration and Project Development for
Stuhini, who is a "Qualified Person" for the purposes of National Instrument 43
101
Standards of
Disclosure for Mineral Projects
.
About Stuhini Exploration Ltd.
Stuhini is a mineral exploration company focused on exploration and development of precious and
base metals properties in western
Canada
and the southwest
United States
. The Company's
portfolio of exploration properties includes the flagship Ruby Creek Property, 14 km east of
Atlin,
BC
; the Que Project, 70 km north of Johnson's Crossing,
Yukon
; the South Thompson Nickel
Project, 35 km northwest of
Grand Rapids, Manitoba
; the Big Ledge Property, 57 km south of
Revelstoke, BC
; the Red Hills Project in
Nevada
and the Lindsay Project in southeast
Arizona
.
Forward-Looking Statements
This news release contains "forward–looking information" within the meaning of Canadian securities
laws, which may include, but are not limited to statements relating to the Option, the exercise of the
Option, , market outlook for silver projects and success, seeking strategic alternatives for the Ruby
Creek property. All statements in this release, other than statements of historical facts, that address
events or developments that the Company expects to occur, are forward-looking statements.
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 and
actual results may differ materially from those in the forward-looking statements. Factors that could
cause the actual results to differ materially from those in forward-looking statements include
regulatory actions, fluctuations in metal and commodity prices, market prices, failure to obtain
permits, and continued availability of capital and financing, and general economic, market or
business conditions. In particular, there is no guarantee that exploration work, as proposed, or
otherwise, will be completed on the Property or that the Option will be exercised. Such forward-
looking information reflects the Company's views with respect to future events and is subject to
risks, uncertainties and assumptions, including those set out in the Company's management
discussion and analysis. Investors are cautioned that any such statements are not guarantees of
future performance and actual results or developments may differ materially from those projected in
the forward-looking statements. There can be no assurance that any forward-looking statements or
information will prove to be accurate as actual results, and future events could differ materially from
those anticipated in such statements or information. Accordingly, readers should not place undue
reliance on forward-looking statements or information. Except as required by applicable securities
laws, the Company undertakes no obligation to update these forward-looking statements in the
event that management's beliefs, estimates or opinions, or other factors, should change.
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.
SOURCE
Stuhini Exploration Ltd.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/October2024/28/c2914.html
%SEDAR: 00046568E
For further information:
For further information please contact: David O'Brien, President & Chief
Executive Officer, Stuhini Exploration Ltd., Email: [email protected], Phone: (604) 835-4019,
Web: www.stuhini.com
CO: Stuhini Exploration Ltd.
CNW 08:30e 28-OCT-24