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Arizona Silver Exploration acquires lease to historic Silverton property in Nevada

Published: 15:15 19 Aug 2020 EDT

Arizona Silver Exploration Inc. -
Arizona Silver is leasing Silverton in exchange for US$70,000 in staged payments up until October 2022 and $25,000 annually thereafter

Arizona Silver Exploration (CVE:AZS) (OTMKTS:AZASF) is acquiring new ground near a historic mine in Nevada known as the Silverton property, it announced Wednesday.

Silverton, which is near the old Silverton Mine property around 100 kilometres northeast of the town of Tonopah, consists of 77 claims totaling around 1,540 acres of land.

The new project saw limited exploration since the early 1980s, when extensive rock chip sampling identified a large gold anomaly spanning nearly 2.5-by-3 kilometres that contained more than 100 parts per billion (ppb) gold.

READ: Arizona Silver Exploration set to sink four holes with core rig at Philadelphia project

Previous operators sank a total of 66 holes on the property, most of which were focused a separate gold-silver anomaly. While some of these holes hit gold values over modest intervals, the veins within the volcanic rocks overlying the dolomitized limestone are not what Arizona Silver sees as the primary exploration opportunity at the Silverton property, it said in a release. The firm told shareholders it believes the dolomite breccias are the primary exploration opportunity.

"The Silverton property represents an excellent opportunity for Arizona Silver to expand and increase shareholder value, with a large property containing demonstrated, extensive gold distribution and a number of drill holes that can help guide further exploration,” CEO Mike Stark said in a statement.

“We welcome Silverton to our already strong portfolio of properties with fantastic opportunities and sizable material resources."

Deal terms

Under the terms of the transaction, Arizona Silver is leasing Silverton in exchange for US$70,000 in staged payments up until October 2022 (US$10,000 of which was already paid in October 2019) and $25,000 annually thereafter. The agreement also gives Arizona Silver the option to purchase the property outright for US$1.25 million with a retained 2% net sales royalty (NSR) to the underlying owner of the claims and a retained 1% NSR to the assignor of the lease.

The Vancouver-based firm also has the right to buy out the royalty interest completely for US$1.25 million and US$500,000 respectively. There is no annual work commitment.

Arizona Silver owns 100% of the previously producing Philadelphia property in Mohave County, Arizona, where past production ranged from 10 to 27 grams per tonne (g/t) gold with historic silver grades in the production shaft averaging 420 g/t silver.

The firm also boasts the Ramsey asset, which lies two hours west of the city of Phoenix, and saw historic high-grade production of 1,370 g/t of silver, and the Sycamore Canyon project, where 31 g/t gold and 553 g/t silver have been encountered at surface.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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