Usha Resources Enters into Binding Letter of Intent
Suite 804, 750 West Pender Street, Vancouver, British Columbia V6C 2T7
Usha Resources Enters into Binding Letter of Intent
Vancouver, British Columbia / June 10, 2020 – Usha Resources Ltd. (“USHA” or the “Company”)
(TSXV: USHA) is pleased to announce that it has entered into a binding letter of intent (the “LOI”) with
AJA Mining LLC and Gold Basin Mining EXP LLC (collectively, the “Optionors”) whereby the Optionors
have agreed to grant the Company the exclusive option (the “Option”) to acquire (the “Acquisition”) 100%
interest in certain 133 mineral claims (the “Mineral Claims” and the “Property”).
Highlights:
• The Property is located within the Lost Basin Gold Mining District in Mohave County, Arizona.
• High-grade gold samples from quartz veins and breccia zone(s) have been reported by the
Optionors. These include samples from the area of the historic Gold Hill Mine (65.8 g/t Au) and
from north of the Climax Mine (77 g/t Au).
• A 13.7 m RC drill hole returned an intersection grading 0.69% Cu (true width unknown).
• While numerous surveys have been conducted, a comprehensive exploration program including
geological mapping has not been done over the Property.
The Property is located within the Lost Basin Mining District in Mohave County, Arizona. Numerous gold-
bearing quartz veins, as well as placer deposits, occur in this district.
The main gold veins in the Lost Basin were discovered in 1886, but most of the gold production has come
from the King Tut placers, which were discovered in 1931. Approximately 1 ,000 ounces of gold are
believed to have been recovered from these placers. According to Bulletin 137 of the Arizona Geological
Survey, the veins of the Lost Basin District average 1.2 to 1.8 m in width and some veins are traceable for
over a mile on the su rface. The material from the veins was reported to average 11.34 g/t, though only
limited mining was done. The U nited States Geological Survey has done considerable work in the Gold
Basin – Lost Basin area directed towards better understanding gold mineral ization within the districts.
Among their recommendations is that the area should be evaluated for potential buried porphyry deposits
(Paper 1361).
The historical exploration work on the Property is discussed in a letter report by Mallory of American
Heavy Minerals. An 18-hole RC drill program was carried out from 1992 to 1993. Drill hole LB-10 had a
13.7 m interval which averaged 0.69 % Cu, including a 1.5 m interval which graded 0.8 ppm Au. True
widths of the mineralized zone are not known. M allory discusses a “breccia zone” in the area of this
drillhole (the “Copper Blow-out”) in a 1993 letter report A sample taken from a backhoe trench within this
zone reportedly featured visible gold and assayed from 567 to 3,118 g/t. These results have not been verified
by the author. Mallory also references 2 airborne geophysical surveys over the property, including
magnetics, resistivity, EM and radiometrics. Various other geological, geochemical and geophysical
surveys are referenced by Mallory, indicating that there is considerable exploration data on the Property to
review.
A 2013 map provided by the Optionors shows the approximate locations of some high -grade gold and
copper samples collected on the Property. These include sam ples from the area of the historic Gold Hill
Mine (65.8 g/t Au) and from north of the Climax Mine (77 g/t Au). A sample grading 19.1% Cu was taken
from the area of the Copper Blow -out Showing. These results have not been verified by the author, nor
were sample details provided.
2
Terms of Acquisition:
Pursuant to the LOI, the Company may exercise the Option on the Property by completing the following:
a) making a total payment in the amount of USD$25,000 with respect to the lease of the Mineral
Claims on or before the date that is 3 business days after the date upon which the Company has
received approval from the TSX Venture Exchange (the “ Exchange”) of the LOI (the “ Effective
Date”);
b) issuing a total of 1,000,000 common shares (the “Shares”) of the Company to the Optionors on or
before the date that is 10 days from the Effective Date;
c) making all annual payments and fees to the government with respect to the Property, which
currently amount to USD$25,000 per year;
d) making a total payment in the amount of USD$3,000,000 to the Optionors in cash or Shares of the
Company or a combination of cash and Shares of the Company within 3 years from the Effective
Date. The Shares will be issued at a price based on the closing price of the Company’s Shares on
the date preceding the date of the issuance of such Shares.
"We have added a robust gold project without any underlying royalty payments. The payments while
completing exploration are minimal and the total payment is only payable if we demonstrate the value of
this project," stated Deepak Varshney, CEO of the Company.
The Acquisition and transactions contemplated therein, including the issuance of the Shares, are subject to
the final approval of the Exchange.
The Shares will be subject to a four month hold period pursuant to securities laws in Canada.
Qualified person
The technical content of this news release has been reviewed and approved by Mr. Helgi Sigurgeirson ,
P.Geo., a qualified person as defined by National Instrument 43 -101 Standards of Disclosure for Mineral
Projects (“NI 43-101”). Historical reports provided by the Optionors of the Mineral Claims were reviewed
by the qualified person. The information provided was mainly in the form of summaries, so the data could
not be verified.
We seek Safe Harbor.
USHA RESOURCES LTD.
“Deepak V arshney”
CEO and Director
Neither 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.