CRANBROOK, BC / ACCESSWIRE / August 8, 2024 / Eagle Royalties Ltd. ("ER":CSE, or "Eagle Royalties") is pleased to announce the purchase of a 1% net smelter royalty ("NSR") on the East Goldfield property (the "Property") from Silver Range Resources Ltd. (SNG) ("Silver Range") for consideration of CDN $25,000. The royalty interest has no buy-down provision.
The East Goldfield Property lies 8km kilometres east of the town of Goldfield in Esmeralda County, Nevada and 6 kilometres east of the historic Goldfield Mining District (Goldfield Main Deposit). To date approximately 4.2M oz gold has been produced from this deposit. The East Goldfield property is adjacent to claims comprising the Goldfield Project currently being explored by Centerra Gold, which acquired the project from Waterton Global in February, 2022 for US$206.5M. The Goldfield project contains published Measured and Indicated resources of 1,574,000 ounces gold in 47.3 M t grading 1.03 g/t Au at the Gemfield, McMahon Ridge, and Goldfield Main Deposits (Source: 43-101 Technical Report-Goldfield Bonanza Project). Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the subject properties.
East Goldfield Property Summary (Source: SNG website-July, 2024)
The East Goldfield Property covers the eastern portion of a fault-defined structural corridor localizing gold mineralization in the Goldfield district. The Property is underlain by intensely faulted and hydrothermally altered rhyodacite breccia. Pervasive quartz-alunite alteration occurs throughout the Property and is most intense in the area of numerous resistant, vuggy silica ledges developed along faults and fracture zones. Arroyo sediment and soil geochemical surveys by Silver Range defined anomalies for key high sulphidation pathfinder elements including copper, arsenic, silver and gold associated with the west-northwest striking breccias and faults within the structural corridor. Silver Range interprets the geochemical anomalies and known gold showings as leakage features and believes the East Goldfield Property has the potential to host significant blind high-sulphidation epithermal gold mineralization.
Silver Range acquired the initial property area by staking in 2018 and has since mapped over 75 workings on the Property. The most significant mineralized occurrence is the Tom Keane Mine, located on the southern margin of the structural corridor. Historical reports document development on four levels with approximately 871 m of drifting and cross-cuts and 213 m of shaft, winze and raise development. Small lease production is mentioned but not specified in these reports. A 1935 evaluation report cited assays of 6.1 m @ 4.11 g/t Au (20' grading .12 oz/t) from the 319 foot level and 11.6 m @ 2.88 g/t Au (38' grading .084 oz/t) from the 219 foot level. In 2003, Metallic Gold Ventures Inc. drilled ten holes in the immediate area of the Tom Keane Mine, reporting gold-enriched intersections in 9 holes, with the best intersections being 4.57 m @ 8.23 g/t Au and 44.20 m @ 1.03 g/t Au.
In 2020, Silver Range expanded the claim block from 4 to 69 claims and optioned the property to ATAC Resources. ATAC prospected, sampled and drilled the property in 2021, with best reported surface chip samples returning 4.16 g/t Au over 8 m, including 7.87 g/t Au over 3 m. In a subsequent drill program, ATAC reported a "broad, mineralized system" with gold values in 8 of 13 holes drilled, with best reported intersections of 82.30 m @ 0.31g/t Au including 9.15 m @ 1.03g/t Au. ATAC terminated the option in February 2022, prior to the Goldfield District acquisition by Centerra.
Tim Termuende is a director of both Eagle Royalties and Silver Range and accordingly has abstained from voting on resolutions relating to the transaction.
Incentive Options Issued
Eagle Royalties has issued incentive stock options to directors, employees and key consultants of the Company for the purchase of a total of 3,700,000 shares at an exercise price of $.30 per share, expiring August 8th 2029, pursuant to the Company's current option plan (subject to shareholder and regulatory approvals).
Qualified Person
Technical information in this news release has been reviewed and approved by C.C. Downie, P.Geo., a director and officer of Eagle Royalties, hereby identified as a "Qualified Person" under N.I. 43-101.
About Eagle Royalties Ltd.
Eagle Royalties was previously a wholly-owned subsidiary of Eagle Plains Resources Ltd. ("EPL":TSX-V), incorporated in late 2022 to manage the diverse royalty holdings of EPL. In May 2023, ER was spun out to Eagle Plains' shareholders on a 1:3 basis by means of a plan of arrangement. Concurrent with the spin-out transaction, Eagle Royalties amalgamated with 1386884 B.C. Ltd., which effectively provided ER with CDN $2.7M in initial funding. Eagle Royalties was listed for trading on the Canadian Securities Exchange ("CSE") on May 19th, 2023.
Eagle Royalties benefits from holding a diverse portfolio of royalty interests in western Canada covering a broad spectrum of commodities including critical metals, precious metals, industrial minerals and diamonds. Projects subject to royalties in favour of Eagle Royalties are controlled by companies including Banyan Gold Corp. and Skeena Resources Ltd. among many others.
Neither the CSE nor any other regulatory body has reviewed or approved the contents of this news release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
