Goldstrike Resources Ltd. (TSX-V:GSR) (FRANKFURT:KCG1) is pleased to report that it has entered into an agreement to purchase a 3% net smelter returns royalty on the “Lucky Strike” property, located in the White Gold District approximately fifteen kilometers east of Kinross’s Golden Saddle deposit, together with a 3% net smelter returns royalty on the nearby BRC property.
The Company currently owns a 70% interest in the Lucky Strike mineral claims and has entered into an agreement to purchase the remaining 30% from Petro One Energy Corp., as reported on November 12, 2015. On completion of its proposed arrangement with Petro One and the purchase of the Royalties, Goldstrike will own an 100% interest in the Lucky Strike property free and clear of all encumbrances. The Company already owns a 100% interest in the BRC mineral claims and, on completion of the purchase of the Royalties, will hold that 100% interest free and clear of all encumbrances.
Goldstrike is currently focused on its flagship Plateau project, but has obtained increasingly promising results from short exploration programs carried out at Lucky Strike over the past two summers, in each case with a portion of its costs offset by YMEP grants from the Yukon Government. In addition, Kaminak Gold Corp. has announced a proposed access road to its Coffee Creek deposit which is planned to pass within six kilometres of the Lucky Strike property. Management has determined to take this opportunity to consolidate ownership of a 100% interest in the Lucky Strike property, which is anticipated to make it more attractive as a stand-alone project to both investors and prospective financial partners.
As reported on September 28, 2015, a series of limited hand pits in a new area located 7 kilometres northwest of the previously explored Lucky Shot zone outlined a 50 by 40 metre gold anomaly on a northwest trending structure. The rock samples contain dark blue – grey quartz veining in schist and orthogneiss that assayed up to 4.26 grams per tonne gold, and the zone remains open in all directions. Samples were consistently anomalous across the zone over a width of 40 metres, with numerous samples returning over 0.5 grams per tonne. Five kilometres to the northwest, soil sampling outlined a new 1,200 by 250 metre zone of strongly anomalous soil, which returned values up to 1,989 parts per billion (1.99 grams per tonne) gold. The newly discovered soil anomaly is coincident with a buried geophysical anomaly previously identified by airborne geophysical survey and remains open in all directions. Both new zones are considered to be strong targets for follow-up trenching in preparation for drilling.
Under the agreement, the Company will issue 75,000 shares and 75,000 warrants to the vendor for the Royalties. Each warrant will be exercisable for two years from the closing date to purchase one additional share for $0.10. The shares and any shares issued on exercise of the warrants will be subject to resale restrictions and may not be sold for a period of four months after closing otherwise than in compliance with all applicable securities legislation.
The vendor is at arm’s length from the Company. No finder’s fee will be paid in connection with the proposed acquisition. The proposed purchase of the Royalties and the proposed arrangement with Petro One are both subject to acceptance by the TSX Venture Exchange.
A total of 63 rock grab samples and 128 soil samples were taken on the Lucky Strike property in 2015. Rock grab samples ranged from detection level to 4,263 parts per billion (4.26 grams per tonne) gold, and soil samples ranged from detection level to 1,989 parts per billion (1.99 grams per tonne) gold.
Note: Grab samples are selective by nature, and are unlikely to represent average grades on the property.
Goldstrike is a mineral exploration company with several discrete exploration projects in the Yukon. For new sections and maps on the Company’s properties, including its flagship Plateau project.
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