Athena Silver Enters into Agreement to Acquire Advanced Stage GOLD Exploration Project IN Nevada
ATHENA SILVER ENTERS INTO AGREEMENT TO ACQUIRE
ADVANCED STAGE GOLD EXPLORATION PROJECT IN NEVADA
VACAVILLE, CA - AUGUST 31, 2020 – Athena Silver Corporation (OTCQB:AHNR) (“Athena”) is pleased
to announce that it has entered into a binding letter of intent (“LOI”) with Nubian Resources Ltd.
(“Nubian”) (TSX VENTURE: NBR) for Athena to acquire Nubian’s Excelsior Springs explor ation project
located in Esmeralda County, Nevada, USA ( “ Excelsior Springs” or the “Property”). Nubian will retain a
1% NSR on the Property and Athena will have the right to purchase 0.5% for $500,000 and the remaining
0.5% at fair market value. The completion of the transaction is conditional upon Nubian obtaining the prior
approval of the transaction from the TSX Venture Exchange (the “TSXV”) and any other approvals required
under applicable laws.
Under the terms of the LOI, Athena has paid a $10,000 deposit to Nubian for an exclusive 90 -day due
diligence period during which time Nubian and Athena have agreed to finalize definitive agreements with
respect to the transaction, and Athena will make an application for listing on a Canadian stock exchange
and will raise a minimum of US$750,000. On closing, Athena will have a maximum of 75 million common
shares outstanding and will issue Nubian 50 million common shares valued at $0.05 per share,
representing an approximate 40% interest in Athena. Nubian has agreed to a hold period of six months
from the date of issuance of the Athena consideration shares. Nubian intends to distribute all or a portion
of the Athena consideration shares received by it to its shareholders following the closing of the transaction
as a return of capital. Any such distribution of Athena shares would be subject to Nubian obtaining the
prior approval from Nubian shareholders and any required approvals of the TSXV.
Athena plans make Excelsior Springs its flagship project and will commission a n updated N.I. 43 -101
Technical Report to support its planned listing on a Canadian Stock Exchange that will also detail past work
and drill programs and highlight future exploration plans to advance the Property.
John Power, President and CEO of Athena, stated, “The potential acquisition of Excelsior Springs gives us
the opportunity to build value with this advanced stage gold exploration property in Nevada , one of the
world’s best mining jurisdictions, and provides excellent diversification from our prior focus on the Calico
Mining (Silver) District in California.”
“The prior work and drill campaigns undertaken at Excelsior Springs provides a great foundation to quickly
advance the project which we believe has the potential to host one or more open-pittable gold deposits along
with higher grade veins that could be mined underground,” added Power.
About Excelsior Springs Gold Project, Esmeralda County, Nevada
The Excelsior Springs mining claims cover an area of 3.5 square kilometres including the historic Buster
mine, which has past production of about 15,000 tonnes (t) at 37 grams per tonne (g/t) gold (Au) to a
maximum depth of 70 metres (m). The Property is located in the Walker -Lane tectonic zone of southern
Nevada, which hosts a number of large historic gold mines. Total gold production from the zone exceeded
20 million ounces (Moz), with notable deposits including Goldfield (5Moz), Bullfrog (2Moz), Tonopah
(2Moz), Mineral Ridge (1.5Moz) and Comstock (8Moz Au, 200Moz Ag ). Nubian owns 100% of the 140
unpatented claims at Excelsior Springs with two additional leased patented claims that are subject to a 2%
NSR on gold production.
From the mid 1980s through 2009, a number of exploration companies conducted drilling prog rams,
primarily on the patented claims, that began to define the near-surface Buster Mine gold zone . Gold
mineralization at the Property occurs within an east-west trending zone that is 200-400m wide and at least
3km long.
The most recent exploration work in 2011 included 3,657m of RC drilling with significant intercepts from
that drilling program highlighted below:
• GE08: 7.6m at 5.1g/t Au from 93.0m
• GE14: 7.6m at 2.9g/t Au from 19.8m
• GE02: 3.0m at 4.7g/t Au from 0m
• GE19: 6.1m at 1.9g/t Au from 117.3m and
• GE15: 13.7m at 0.8g/t Au from 61.0m
Gold mineralization discovered at Excelsior to date occurs in quartz vein stock-works and silicified zones in
hornfels and calc -silicate altered country rock and generally close to porphyry dykes. The best
mineralization (grade and thickness) is found in altered sediments immediately above porphyry dykes that
have intruded along existing east and east-northeast trending faults. The mineralized stock-work vein zones
are shallow and have a relatively flat plunge, making them amenable to open pit mining metho ds, if
economic zones are outlined.
Exploration to date has focused on a 2.5 km long section in the central part of the zone where mineralization
is at or near the surface. Surface mapping and an Induced Polari zation (IP) geophysical survey identified
multiple zones of silicification that correlate well with the known mineralization. Many of the silicified
zones defined by the IP (resistivity highs) have not been tested by drilling and remain targets for future
exploration, approximately 4km of the zone is concealed beneath thin transported cover.
A National Instrument 43‐101 technical report was filed on SEDAR by Nubian on Excelsior Springs in 2010.
About Athena Silver Corporation
Athena is focused on the exploration and development of precious metals in the Western United States. Its
core holding is 36 unpatented claims totaling over 720 acres located in the Historic Calico Mining District
in San Bernardino County, California. Athena’s unpatented claims are located adjacent to the historic silver
deposits known as Langtry and Pan American Silver’s Waterloo. Athena also owns more than 800 acres of
investment property in San Bernardino County, California and has an option to acquire a 1% royalty on the
Langtry Silver Deposit.
For more information: John Power, President, 707-291-6198
Cautionary Statement
The United States Securities and Exchange Commission permits mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company ca n legally extract or produce. Under
SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves.
Currently we have not delineated “reserves” on any of our properties. We cannot be certain that any
deposits at ou r properties will ever be confirmed or converted into SEC Industry Guide 7 compliant
“reserves.” Investors are cautioned not to assume that all or any part of any “resource” estimates will ever
be confirmed or converted into reserves or that they can be economically or legally extracted.
Forward Looking Statements
This release contains “forward-looking statements.” Such statements are based on good faith assumptions
that Athena Silver Corporation believes are reasonable but which are subject to a wide range of
uncertainties and business risks that could cause actual results to differ materially from future results
expressed, projected or implied by such forward -looking statements. Fact ors that could cause actual
results to differ from those anticipated are discussed in Athena Silver Corporation’s periodic filings with
the Securities and Exchange Commission.