|January 23, 2017|
Bitterroot Resources Options Ely Gold's North Hackberry Claims With Additional High-Grade Silver Deposits
|Michael Carr, President of Bitterroot Resources Ltd. ("Bitterroot" or the "Company", symbol BTT, TSX-V) announces that the Company has entered into an option agreement with Ely Gold & Minerals Inc. ("Ely", symbol ELY, TSX-V) and Ely's wholly-owned subsidiary Nevada Select Royalty Inc. ("Nevada Select") to acquire a 100% interest in the North Hackberry claims (the "Option"). The North Hackberry unpatented lode claims host the Silver King past-producing high-grade silver mine. The Silver King mine is an important part of the main Hackberry mineralized system, which also hosts the Old Hackberry (Sunshine) and South Hackberry Mines, as described in the Company's news release dated January 18, 2017. Bitterroot now controls lands covering over 4.2 kilometres (2.6 miles) of prospective strike length along the Hackberry silver-mineralized structure in Mohave County, Arizona. |
The Silver King high-grade deposit was discovered in 1879 and was mined from 1879 to 1884. The Silver King underground workings consist of several now-collapsed, inclined and vertical shafts that reached about 30 meters (100 feet) below surface, plus numerous shallow pits. The early miners took only the shallow, oxidized, enriched mineralization located above the water table, with mined grades of approximately 200 oz/ton silver (6,850 gram/tonne) (Johns, 1918). The North Hackberry (Silver King) silver mineralization is hosted in epithermal veins of probable mid-Tertiary age which are approximately 0.6 to 1.2 meters (2 to 4 feet) thick at surface. Evidence of the Silver King mineralized zone is traceable on the ground for approximately 900 meters (2,950 feet). The underground workings comprising the Silver King mine consist of two zones about 360 meters (1180 feet) apart; a northern zone approximately 120 meters (400 feet) in strike length and a southern zone about 150 meters (500 feet) long. The southern zone is 1.2 kilometers (0.7 miles) northwest of the Old Hackberry Mine decline shaft. The North Hackberry unpatented lode claims cover 24 ha (60 acres). The total Hackberry project area currently under Bitterroot's control is approximately 526 ha (1,300 acres), including 12 patented and 53 unpatented lode claims.
Bitterroot has not located maps of the underground workings in this area. Apart from several documented property reviews by interested parties, there has been no systematic exploration undertaken on the North Hackberry (Silver King) claims since about 1910. Obvious exploration targets exist throughout the Hackberry claims, along strike or down-dip from previously mined areas and in blind hanging wall or footwall veins. Bitterroot has staked an additional 50 contiguous unpatented lode claims around the Hackberry patented claims and the North Hackberry (Silver King) unpatented claims.
Historic rock geochemical data collected by Malkoski (1985) and Nevada Select (Baughman, 2015) confirm the anomalous metal contents of the Silver King mineralized zone as shown in the table below.
In order to provide preliminary confirmation of the historic assay data, rock samples were taken during Bitterroot's initial inspection of the North Hackberry property. Two samples (HBN-001 and HBN-006 above), taken from mineralized outcrops in the vicinity of the North and South Silver King mine workings, contained 40.3 oz/ton silver (1,380 grams Ag/tonne) and 33.8 oz/ton silver (1,160 grams Ag/tonne) respectively. While these selected grab samples are not representative of the mineralization hosted on the property and are limited in number, the Company believes that they confirm the presence of high-grade silver mineralization at the Silver King mine area.
The HBN samples were collected by Glen Adams, a Qualified Person as defined by NI 43-101, while visiting the Hackberry Property on September 8 and 9, 2016. The samples remained in Mr. Adams' possession until they were shipped by commercial carrier to ALS Geochemistry ("ALS") in Tucson, Arizona. The samples were prepared for analyses by ALS in Tucson. The analytical procedures (ME-GRA21, OG-46 and ME-ICP41) were performed by ALS Canada Ltd. in North Vancouver, BC, Canada, an ISO/IEC 17025 accredited laboratory. The Baughman sample (HAN-1) was also analyzed by ALS Canada Ltd. in North Vancouver. The Malkoski samples (455xx series) were analyzed at the defunct GCI Geochemical Laboratory, Toledo, California. Mr. Adams has no knowledge of the quality of the Baughman or Malkoski sampling, sample recovery or sample security therefore there is no guarantee as to the accuracy or completeness of the work done or of the supporting documentation.
Note: The foregoing estimated grades from prior production (Johns, 1918) and Baughman and Malkoski's sampling were not prepared by or on behalf of the Company, are historical in nature, and have not been verified by a qualified person, as defined in NI 43-101. The foregoing samples are unlikely to be representative of overall grades of mineralized material at the Hackberry Property. The Company does not treat these production sample results as current mineral resources or reserves, and due to the historical nature of the records, the Company is unable to conduct sufficient verification of the samples to determine their reliability.
In order to define drill targets for testing later in the year, Bitterroot's first phase of exploration on the North Hackberry claims is expected to include detailed geological mapping, structural analysis, rock, soil and silt sampling and geophysical surveys. Permitting work on these unpatented claims will begin immediately.
Under the terms of the Option, and immediately following receipt of TSX Venture Exchange ("Exchange") acceptance of the Option, Bitterroot will initially pay Nevada Select US$20,000 and issue 200,000 common shares to Nevada Select. On or before the first anniversary date of Exchange acceptance, Bitterroot will pay Nevada Select US$30,000 and issue Nevada Select 100,000 shares. On or before the second anniversary date of Exchange acceptance, Bitterroot will pay Nevada Select US$50,000 and issue Nevada Select 100,000 shares. On or before the third anniversary date of Exchange acceptance, Bitterroot will pay Nevada Select US$50,000 and issue Nevada Select 200,000 shares for total consideration of US$150,000 and 600,000 Bitterroot shares to exercise the Option and acquire a 100 percent interest in the unpatented claims. Nevada Select will also retain a 3 percent net smelter returns royalty (the "NSR") on precious metals (defined as silver, gold and platinum), a 2% NSR on all other products sold from the property and a 0.5% NSR on any unpatented lands which Bitterroot acquires within a 2.66 mile radius of the North Hackberry claims. On the first three anniversaries of the Option exercise, Bitterroot will pay Nevada Select advance minimum royalty payments of US$10,000 per year. On each of the fourth through tenth anniversaries of the Option exercise, Bitterroot will pay Nevada Select advance minimum royalty payments of US$15,000 per year. The Option remains subject to the acceptance of the Exchange.
Subject to the approval of the Exchange, the Company will pay a finder's fee of 100,000 common shares of the Company to an arms-length party.
Mr. Glen W. Adams, PG (Wisconsin), a consultant to the Company, is the Qualified Person responsible for the technical content of this news release. Mr Adams has prepared, supervised and approved the scientific and technical disclosure in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael S. Carr
Baughman, J., 2015, ALS Minerals Certificate of Analysis RE15007497, February 04, 2015
Johns, A.L., 1918, Report on Silver King Group, Peacock Mining District, Hackberry,
Mohave County, Arizona, in Arizona Geological Survey Digital archives, Tucson, AZ, May 27, 1918, 9 p.
Malkoski, M., 1985, Geology and Ore Potential of the Hackberry, Silver King,
Homestake and Unnamed Lodes, Hackberry District, Mohave County, Arizona,
unpublished internal report, Hughes Family Trust archives, August 1985, 16p.
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.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the potential future exercise of the Option, and receipt of regulatory approval thereof. Although the Company believes that the expectations and assumptions on which the forward looking statements are based are reasonable, undue reliance should not be placed on the forward looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the results of the Company's exploration activities on the applicable mineral properties, metals prices, the state of the equity financing markets, and regulatory approval matters.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise.