North PEAK Resources Signs Non-Binding Letter of Intent FOR Option ON Black Horse GOLD Property, White Pine, Nevada
NORTH PEAK RESOURCES SIGNS NON-BINDING LETTER OF INTENT FOR OPTION ON
BLACK HORSE GOLD PROPERTY, WHITE PINE, NEVADA
Calgary, Canada October 14, 2021
North Peak Resources Ltd. (TSX Venture: NPR) (the “Company”) announces it has signed a non-
binding Letter of Intent (the “LOI”) with Minex LLC (“Minex”) dated effective October 7, 2021 for a potential
purchase option on the 2,733 acre Black Horse gold and silver property located 50 miles east of Ely in
White Pine County, Nevada (the “Option”). Acquired by Minex in 1997, drilling campaigns in 1997-1998
of more than 300 holes identified a mineralization trend that strikes NE and appears to have a strike
length of two miles with drilling generally at 100-foot centers. A historical surface based resource of
gold and silver for the Black Horse property was outlined in a Nov. 2016 technical report for Minex, as
described below.
“The Black Horse property last drilled in 1998 could provide the low cost gold production required to
anchor North Peak’s growth and ambitions,”said Brian Hinchcliffe, Executive Chairman and CEO of
the Company. “Gary Grauberger who rediscovered and drilled out the Black Horse property in the late
1990’s has a track record of finding and commercializing gold deposits and with Company director
Mike Sutton will design new drill programs utilizing modern exploration technology.”
Black Horse Property Highlights:
• Historic resources – Historical inferred mineral resource estimates of 350,000 troy ounces of gold
with a grade of 1.2 grams gold or 0.045 oz (using a base case cut off of 0.005 opt Au), plus 1,140
million oz of silver at 0.14 ounce per ton, was prepared for Minex in a technical report dated effective
November 18, 2016 by Scott E. Wilson, C.P.G. (the “Technical Report”). A Qualified Person has
not done sufficient work for the Company to classify these historical estimates as a current mineral
resource or mineral reserve. The Company is not treating these historical estimates as current
mineral resources or mineral reserves and has not verified the historical resource estimates. While
the Technical Report was prepared according to the guidelines of the CSA’s National Instrument
43-101, the reader is cautioned that the data used in the preparation of the historical resource
estimates does not meet the current standards of exploration quality assurance and quality control
protocols and significant additional drilling (including diamond drilling, some which will twin earlier
holes), data verification (quality control), and a site visit would be required to ensure the quality of
historic data meets current standards for use in a resource estimate. Further information in respect
of this historical resource estimates is set forth below.*
• Property description – The Black Horse property is 2,733 acres of federal lands administered by
the BLM and is located within the Snake Range, Eastern White Pine County, Nevada. The property
is along U.S. Highway 50 and located 50 miles east of the town of Ely, Nevada and 11 miles
Northwest of Baker, Nevada, and is 100% owned by Minex.
• Historic Metallurgical work – Historic but preliminary metallurgical work consisting of bottle roll
cyanide tests on 12 oxide drill cutting composites and 4 surface sample composites returned an
average recovery of 97% for gold and 73% for silver at minus 100 mesh in 48 hours.
• Black Horse geology – Approximately 65% of the gold mineralization occurs in hydrothermally
altered and micro-veined quartzite inter-layered beds of mica schist in the Pre-Cambrian McCoy
Creek group. Most of the gold mineralization in the quartzite appears to be stratiform and varies
from 20-100 feet in thickness. Gold grades range from below detection to 1.4 ounce per ton over
www.northpeakresources.com
TSX Venture: NPR
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ten-foot drill assay intervals (see below for further information). A major thrust structure is present-
representing the conduit for gold fluids. The Cambrian Lincoln Peak limestone overlies the
Precambrian McCoy Creek group and is in the thrust fault contact with the Precambrian McCoy
Creek group.
• Two distinct areas of development – The Black Horse property has 2 distinct areas to focus on,
known as Area A and Area B. The Technical Report and its historic estimate of gold and silver
resources refer only to data from Area A and is the oxide portion of that Area A.
Gold was originally produced from the Black Horse property around 1906 and the district saw
intermittent historic small-scale mining between 1905 and 1998. Recent exploration activities by
previous operators included mapping, sampling, geophysical surveys and drilling, culminating in the
historical resource estimate referenced above. Gold mining began in the Black Horse district around
1905 and the largest orebodies mined were veins along faults and replacement deposits in limestone.
Minex was the first company to undertake a comprehensive exploration campaign and gold grades from
the 1998 drilling programs ranged from below detection to 1.4 ounce per ton over 10-foot drill hole assay
intervals. Some of the better intersections on the property including 0.24 ounces per ton (ozt/) over 90 feet
(hole 230), 0.25 oz/t over 30 feet (hole 182) and 0.28 oz/t over 30 feet (hole 89). A Qualified Person has
not done sufficient work for the Company to corroborate these historical drill intersections.
The Company and Minex will work together towards the execution of definitive documentation in the
respect of the Option outlined in the LOI. It is proposed that such definitive documentation will include
an initial payment to Minex of US$1.5 million (potentially to be paid in a combination of cash and
shares of the Company), two option payments and a production royalty structure. Option payment #1
would be for US$10 million and would be due 18 months after definitive documentation is executed,
and within which time the Company would carry out exploration and work programs. Option payment
#2, also for US$10 million would be due 12 months after the due date for Option payment #1, and with
such payment it is proposed that the Company would acquire a 50% interest in the Black Horse
property.
It is also proposed that after obtaining final material permits, the Company would acquire the remaining
50% interest in the Black Horse property. It is proposed that the production royalty would be US$50
an ounce to be paid for the first 400,000 ounces of gold production and thereafter the royalty figure
would be 2%. A transaction in respect of the Option is subject to final determination of the structure
of the transaction, execution of definitive documentation, final approval by the Board of Directors of
each of the Company and Minex, and receipt of applicable approvals by the TSX Venture Exchange.
The Company and Minex are at arm’s length.
Investors are cautioned that there can be no assurance that a potential transaction in respect of the
Option will be completed as proposed, or at all. Trading in the securities of the Company should be
considered highly speculative.
Mr. Mike Sutton, P.Geo., a director of the Company, is the Qualified Person who reviewed and
approved this news release. The Qualified Person has not reviewed the mineral tenure, nor
independently verified the legal status and ownership of the Black Horse property or any underlying
property agreements.
John Tumazos of Very Independent Research presented this opportunity to the Company and is
advising the Company in respect of the development of the Black Horse property.
The Company will issue additional press releases related to execution of definitive documentation in
respect of the Option and other material information as it becomes available. Finder’s fees and fees
to advisors may be payable in connection with any definitive transaction, and if payable, will be
announced in subsequent press releases.
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* In respect of the historical mineral resource estimates referenced above grade shells were
interpreted and constructed and the estimates used inverse distance techniques in Vulcan software
by the author of the Technical Report. The resource estimates were prepared in conformity with
generally accepted CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice
Guidelines”. No top cut was used, as it was shown not to be necessary. To demonstrate the reasonable
prospects of eventual economic extraction these historical mineral resources estimates have been pit
constrained. Whittle™ was used to identify the portion of mineralization that could support production
from open pit mining. It was assumed that gold and silver would be recovered using crushing followed
by heap leaching of mineralized material. Typical production costs found throughout Nevada were
used as assumptions. The estimates were based on a gold selling price of US$1,000/oz, mining cost
of US$2.00/ton, crushing and leaching costs of US$4.00/ton, gold recovery of 80% and a pit slope of
50 degrees. The base case mineral resource estimates are highlighted at 0.005 opt gold; oxide ore
bottle roll results indicated that 80-85% recovery for gold and 50-60% recovery for silver are probable
on a conventional heap leach at minus 1 inch feed, which need to be confirmed by cyanide column
leach tests on diamond drill-hole samples collected from different areas of both deposits. The
Technical Report recommended a drill program of 30 drill holes averaging around 275 feet. No
economic analysis was evaluated for the project.
About North Peak Resources
The Company is a Canadian based gold exploration and development company that is listed on the
TSX Venture Exchange under the symbol “NPR”.
For further information, please contact:
Brian Hinchcliffe, CEO
Phone: +1-647-424-2305
Email: [email protected]
Website: www.northpeakresources.com
Chelsea Hayes, Director
Phone: +1-647-424-2305
Email: [email protected]
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS : This news
release includes certain "forward-looking statements" under applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements with respect to those that
address the ability of the parties to come to definitive terms and negotiate and execution of definitive
documentation in respect of the Option, the ability to receive applicable approvals from the TSX
Venture Exchange, estimates of mineralization from drilling, geological information projected from
sampling results and the potential quantities and grades of the target zones, potential for minerals
and/or mineral resources, and statements regarding the plans, intentions, beliefs, and current
expectations of the Company with respect to the future business activities and operating performance
of the Company that may be described herein. Forward-looking statements consist of statements that
are not purely historical, including any statements regarding beliefs, plans, expectations or intentions
regarding the future. Such information can generally be identified by the use of forwarding-looking
wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the
negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-
looking statements, as there can be no assurance that the plans, intentions or expectations upon
which they are based will occur.
By their nature, forward-looking statements involve numerous assumptions, known and unknown risks
and uncertainties, both general and specific, that contribute to the possibility that the predictions,
estimates, forecasts, projections and other forward-looking statements will not occur. These
assumptions, risks and uncertainties include, among other things, the state of the economy in general
and capital markets in particular, accuracy of assay results, geological interpretations from drilling
results, timing and amount of capital expenditures; performance of available laboratory and other
related services, future operating costs, and the historical basis for current estimates of potential
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quantities and grades of target zones, as well as those risk factors discussed or referred to in the
Company's Management's Discussion and Analysis for the year ended December 31, 2020, and the
period ended June 30, 2021 available at www.sedar.com, many of which are beyond the control of the
Company. Forward-looking statements contained in this press release are expressly qualified by this
cautionary statement.
The forward-looking statements contained in this press release are made as of the date of this press
release. Except as required by law, the Company disclaims any intention and assumes no obligation
to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise. Additionally, the Company undertakes no obligation to comment on the
expectations of, or statements made by, third parties in respect of the matters discussed above.
CAUTIONARY NOTE REGARDING MINERAL RESOURCES : Mineral resources are not mineral
reserves and do not demonstrate economic viability. There is no certainty that all or any part of the
mineral resource will be converted to mineral reserves.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING HISTORICAL RESOURCE ESTIMATE:
This news release has been prepared in accordance with the requirements of the securities laws in
effect in Canada, which differ in certain material respects from the disclosure requirements
promulgated by the Securities and Exchange Commission (the “SEC”). For example, the term “inferred
mineral resource” is a Canadian mining term as defined in accordance with Canadian National
Instrument 43-101 Standards of Disclosure for Mineral Projects and the Canadian Institute of Mining,
Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in
the disclosure requirements promulgated by the SEC. Accordingly, information contained in this
presentation may not be comparable to similar information made public by U.S. companies reporting
pursuant to SEC disclosure requirements.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.