Cold Springs is a low sulphidation epithermal prospect around 80 km east of the city Fallon on Highway 50 in Churchill County, said prospect generator Silver Range in a statement on Monday.
Volt can acquire a 75% stake by paying Silver Range a total of C$300,000 in cash and performing a minimum of 2,000 meters of drilling over a three-year period.
Silver Range will retain a 2.5% net smelter return (NSR) that can be bought down to 1% for a cash payment of C$1.25million. The pair have agreed to complete a definitive agreement before the end of August this year.
High-grade gold and silver occurs in four major gently west-dipping quartz veins exposed in the footwall of a west-dipping range front fault.
Selected specimens of material sampled by Silver Range have assayed up to 20.1 grams per ton (g/t) gold and 1,770 g/t silver. Best assays from these veins were reported in one hole, which returned 3.05 m at 4.25 g/t gold, the firm said.
A three-dimensional induced polarization (IP) survey covering the favorable hanging wall stratigraphy west of the range front fault found a large resistivity low at a depth of around 80 m beneath covering alluvium, noted the firm. This feature lies in an area that has never been drill tested.
The style of mineralization and exploration setting at Cold Springs is similar to that of the Sleeper deposit in Humboldt County.
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