Located near the historic mining town of Tonopah, Skylight is an early stage prospect that prior exploration work indicates houses a fully preserved, never-drilled precious metal epithermal system.
Vancouver-based Silver Range optioned the project to Rush Gold in a cash-and-share deal that sees Silver Range retain a royalty interest on the prospect.
In a statement, Silver Range said that Skylight “drew no attention” from early prospectors due to the lack of readily exposed gold or silver mineralization but was recognized as a significant target in the early 2000s by Rimfire Minerals Corporation and Newmont Mining.
Rimfire drilled six holes (1575 metres) at Skylight in 2007, with intercepts ranging from 0.5 grams per ton (g/t) gold at 10.7 metres to 1.8 g/t at 3.05 metres. This work was never followed up and the core of the system beneath the silica caps was never drill tested, according to Silver Range.
Under the option agreement, Rush Gold may acquire 100% interest in Skylight over a three-year period by making cash payments amounting to $320,000 and issuing 650,000 shares to Silver Range. As part of the transaction, Rush Gold must complete an initial public offering by March 2021 and complete 3,000 metres of drilling.
Silver Range will retain a 3% net smelter return on the property, two-thirds of which may be purchased by Rush Gold for $1 million prior to production. Silver Range is also entitled to defined resource payments of US$4 per ounce of gold-equivalent measured and indicated resources as outlined in Skylight’s future resource definition. If there is no resource definition by the sixth anniversary of the agreement in 2026, Silver Range may receive US$10,000 on the sixth and every subsequent anniversary until a resource is defined.
Silver Range has a portfolio of 45 properties, 11 of which are currently optioned and being explored by partners.
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