Jun 17, 2019
Bitterroot Resources Options Ely Gold's Castle West Gold/Silver Project, Nevada
Bitterroot Resources Ltd. (BTT, TSX-V) and its US subsidiary Trans Superior Resources, Inc. ("Bitterroot") have entered into an option agreement with Ely Gold Royalties Inc. (ELY, TSX-V) and its subsidiary Nevada Select Royalty Inc. ("Ely Gold"), to purchase a 100 percent interest in the Castle West gold/silver property in the Walker Lane mineralized trend in western Nevada's Gilbert mining district. The road-accessible Castle West property is located on BLM-managed lands approximately 45 km west of Tonopah, NV. Bitterroot's management plans to expand known bonanza-style and bulk-tonnage gold-silver mineralized zones and define additional mineralization in untested structural targets.
The Castle West property hosts a high level, low-sulfidation epithermal gold system. The current erosional surface has exposed a large epithermal system, as evidenced by extensive quartz-sericite alteration and the presence of high-grade gold-silver mineralized veins. Surface rock chip samples taken across one to two-metre wide veins returned grades of 15-57 grams gold/tonne, 99-370 grams silver/tonne and 60-370 ppm mercury, with high levels of arsenic, molybdenum and antimony. Gold/silver mineralization occurs in strongly-altered Tertiary-aged felsic tuffs and andesitic flows. Previous drilling, mapping and surface sampling by Kinross Gold USA Inc. identified near-surface and deeper bulk tonnage gold-bearing targets, together with potential for bonanza-style high-grade gold mineralized veins and feeder structures. Ely Gold has provided Bitterroot with a large database of geologic and geochemical data collected by previous operators.
The Castle West property is comprised of 34 unpatented mining claims and three leased unpatented claims, covering approximately 282 hectares. Under the terms of the agreement, Bitterroot has paid Nevada Select US$1,000 and will pay US$15,000 on the first anniversary of Closing. On each of the second, third and fourth anniversaries of Closing, Bitterroot will pay US$40,000. A final payment of US$105,000 will be made on the fifth anniversary for the conveyance of the 100% interest in the Property. Bitterroot will make minimum advance royalty payments of US$5,000 on the first and second anniversaries of exercising the option and US$10,000 on subsequent anniversaries. Nevada Select will retain a 3% NSR on the 34 claims it staked. Bitterroot has the right to buy down 1% of this NSR for a payment of US$1,000,000. Upon Option Exercise, Bitterroot will be assigned the three-claim lease and Nevada Select will retain a 1% NSR on these claims.
The Qualified Person, as defined in NI 43-101, responsible for the technical content of this news release is Jeffrey D. Rowe P.Geo.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael S. Carr
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 document contains statements about expected or anticipated future events and/or financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, regulatory processes and actions, technical issues, new legislation, competitive conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and the company's ability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.