NV Gold Signs Binding LOI for Option to Acquire 100% of the Silver District Property in Arizona, USA
580 Hornby Street, Suite 588
Vancouver, British Columbia, V6C 3B6
Tel: +1 888 363 9883
www.nvgoldcorp.com
NV Gold Signs Binding LOI for Option to Acquire 100% of the
Silver District Property in Arizona, USA
January 13, 2020 - Vancouver, British Columbia – NV Gold Corporation (TSXV: NVX;
US: NVGLF) (“NV Gold” or the “Company”) announces that it has entered into a Binding
Letter of Intent (“LOI”) with Magellan Gold Corporation (OTCQB: MAGE) ("Magellan")
under which NV Gold has an option to acquire all of Magellan's interest in its Silver District
Project located in La Paz County, Arizona, USA (the "Property").
“With continued optimism in the gold and silver market, NV Gold has reviewed the Silver
District Project in Arizona , and believes the property provides a unique resource
development opportunity for the Company and its shareholders. The Silver District project
can be explored and developed year-round, it lies in close proximity to our other projects
in Nevada, it hosts a n unconfirmed historical resource totaling in excess of 15 million
ounces of silver developed nearly 30 years ago and it is potentially open along strike and
at depth in multiple vein systems, with very limited drilling below 40 meters,” commented
Peter A. Ball, President. “After securing positive terms for NV Gold to acquire the Silver
District Project, including minimal cash and dilution components, we look forward to an
in-depth review of the project during the four-month exclusive due diligence period. Our
goal is to push forward to finalize a Definitive Agreemen t with Magellan , and quickly
engage a third-party, independent technical consultant , to provide geological modelling
and data verification.”
Highlights of the Silver District Binding LOI Terms:
Magellan grants NV Gold the exclusive right to purchase an undivided 100% right, title
and interest in and to the Property and the Property Data in consideration of NV Gold
completing the following payments and work commitments:
Time for Payment Cash
US$
Shares Shares
CDN$
Work Commitment
CDN$
Binding LOI $25,000 120 Day Due Diligence / Exclusivity Period
Definitive Agreement (DA) $75,000 350,000
1st Year Anniversary of DA $75,000 $50,000
2nd Year Anniversary of DA $25,000 $75,000 $50,000
3rd Year Anniversary of DA $25,000 $100,000 $50,000
4th Year Anniversary of DA $25,000 $125,000 $50,000
5th Year Anniversary of DA $25,000 $150,000 $25,000
“As we continue to evaluate, explore and develop our core project portfolio and data
library in Nevada, we see the Silver District as a promising strategic project and it expands
our regional geographic horizon into Arizona. Southwestern Arizona is accessible 12
months of the year, ensuring year-round accessibility and continued news flow,” stated
John E. Watson, Chairman. “We continue to carefully manage and allocate capital with
an emphasis on minimizing dilution. We will look to advance the Slumber and other
projects this spring, as we currently focus on our initial review of the Silver District Project.
Our technical team has completed an internal geological modelling exercise of the Slumber
Gold Project and defined this asset as priority drill project, and we look forward to testing
it with additional geophysics to develop a more comprehensive model.”
About the Silver District Project and Historical Resource (*Please refer to disclaimer
and disclosure below related to the Silver District Project):
• The Silver District Property consists of 108 unpatented mining claims, 3 patented
claims and one state lease, totaling close to 2,000 acres. The property covers a
majority of the historic Silver District in La Paz County, approximately 80 kilometers
(50 miles) north of Yuma in southwest Arizona.
• The district-scale property position covers the heart of the historic Silver District and
includes all of the important historical producers, most of the old mines and prospects
and all of the known exploration targets, where historic recorded production during
1883-1893 from small underground mines was 1.56 million ounces silver and 2.33
million pounds lead.
• The Silver District Project in La Paz County was explored from 1973 – 1992, where
New Jersey Zinc Company and Orbex Minerals Ltd. , and its successor companies
drilled a total of 465 shallow holes (limited to less than 40 m (130 ft)) for an aggregate
length of approximately 19,162 meters ( 62,866 feet), conducted metallurgical test
work (up to 65% recovery of silver) and carried out historical scoping studies.
• In 1991-1992, using polygonal methods, a historical silver resource was estimated
by Gulf and Western Industries, Inc. as 3.56 million tons grading 4.46 oz/t silver or
15.9 million contained ounces silver, and fluorspar mineralization was estimated as
2.3 million tons grading 14.5% CaF2 or 328,450 tons contained fluorite, but neither
estimate has been confirmed by the Company (see below) . Included within this
mineralization are substantial tonnages grading 17.0% barite (BaSO4) and 3.57%
lead-zinc.
• Mineralization is controlled by three principal sub-parallel north-northwest trending
epithermal vein systems cutting Tertiary volcanic rocks underlain by basement
metamorphic rocks. The three vein structures extend over a collective strike length
of 12.8 km (8 miles). The deposits containing silver, lead-zinc, fluorspar and barite
occur along the veins in pod-like bodies commonly 15-50 feet or wider and hundreds
of feet long.
• In 2014, Magellan drilled hole PA -01, which intersected 90 feet grading 6.05 oz/ t
silver (including 10 feet of 17.06 oz/t silver) and compared favorably to historic
results. PA -01’s 90 -foot intercept also returned previously unreported zinc -lead
values averaging 4.71% zinc and 1.56% lead over the 90 feet, including 10 feet
grading 8.35% zinc and 4.02% lead.
• Conceptual development plans by past operators have involved multiple open pits
feeding a central mill. Flow sheet designs employ fine grinding and cyanide leaching
to recover silver, and conventional flotation to recover fluorspar and barite.
• NV Gold’s management team does not view the Silver District project
material to the Company at this time.
Disclosure of Historical Estimates*:
The Company considers the prior mineral resource estimate to be a historical
estimate for purposes of NI 43 -101. The Company plans to assess the historical
estimate as it commences work on the Silver District Project to determine whether it
can be verified as a current mineral resource estimate under NI 43-101 or the extent
of the work that might be required if it can be verified . However, at this time a
qualified person has not done sufficient work to classify the historical estimate as a
current mineral resource on behalf of the Company and it should not be considered
reliable. The estimate does not classify the resource as either a measured, indicated
or inferred resource and, accordingly, readers should not assume it satisfies the
requirements of any of such classifications. The Company is not treating the historical
estimate as a current mineral resource but considers it relevant historical information
in respect of the Project. Readers should be cautioned that there is no guarantee that
the foregoing historical resource estimate will be verified or confirmed in accordance
with the requirements of NI 43-101.
Furthermore, to the extent that the historical estimate is reliable, readers should be
cautioned that mineral resources that are not mineral reserve s do not have
demonstrated economic viability. Mineral resource estimates do not account for
mineability, selectivity, mining loss and dilution. The mineral resources at the Silver
District Project are considered too speculative geologically to have econom ic
considerations applied to them that would enable them to be categorized as mineral
reserves. There is also no certainty that the historical mineral resource will be
converted into mineral resources or mineral reserves, once economic considerations
are a pplied; or that these mineral resources will be converted to measured and
indicated and inferred categories through further drilling, or into mineral reserves,
once economic considerations are applied.
View of Silver District Claims:
Note: Red Cloud Mine and related claims are not included in the Agreement.
Closing of the Transaction is subject to various conditions, including, without limitation,
satisfaction of any regulatory requirements and receipt of the approval of the TSX Venture
Exchange. Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. All shares issued related to the transaction requires
the statutory hold period of four months plus a day from the date they are issued.
About NV Gold Corporation
NV Gold is a junior exploration company based in Vancouver, British Columbia that is
focused on delivering value through mineral discoveries and advancement. Leveraging its
highly experienced in-house technical knowledge, NV Gold’s geological team intends to
utilize its geological databases, which contains a vast treasury of field knowledge spanning
decades of research and e xploration, combined with a portfolio of mineral properties in
Nevada and Arizona, to prioritize key projects for focused exploration programs.
On behalf of the Board of Directors,
John E. Watson
Chairman
For further information, visit the Company’s website at www.nvgoldcorp.com or
contact:
Peter A. Ball, President & COO
Phone: 1 -888-363-9883
Email: [email protected] .
Forward Looking Statements
This news release includes certain forward -looking statements or information. All statements other than
statements of historical fact included in this release, including, without limitation, the plans to complete the
Definitive Agreement to Acquire the Silver District Project , the historical resource at the Silver District
Project and whether it can be confirmed in accordance with the requirements of NI-43-101 and a new current
resource developed, the plans to complete exploration or development of the Project and other future plans
and objectives of the Company, including exploration plans , are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such statements will prove to be accurate
and actual resul ts and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from the Company's plans or
expectations include regulatory issues, market prices, availability o f capital and financing, general
economic, market or business conditions, timeliness of government or regulatory approvals and other risks
detailed herein and from time to time in the filings made by the Company with securities regulators. The
Company disclaims any intention or obligation to update or revise any forward-looking statements whether
as a result of new information, future events or otherwise except as otherwise required by applicable
securities legislation.