The Olinghouse gold resources, which includes Indicated resources totaling 10,815,000 tons averaging 0.038 oz Au/ton (411,000 ounces), with an additional 9,842,000 tons averaging 0.028 oz Au/ton (284,000 ounces) assigned to the Inferred category.
The Project’s current owner, Lake Mountain Mining, LLC is currently reviewing its financing plans for additional exploration, required permitting, economic studies and various capital expenditures towards a production re-start decision in the near future. A large portion of the Olinghouse Property remains relatively unexplored. The Project has excellent potential to increase the current gold resources in excess of 1m+ ounces.
Full consideration of the Agreement consists of the following: (i) an initial cash option payment of $200,000 (paid) upon execution of the definitive agreement. (ii) $2,000,000 which can be paid by Nevada Canyon to the Vendor in either cash, or (iii) 2,000,000 common shares. Closing of the transaction is subject to certain terms and conditions as disclosed in the Definitive Option to Purchase Agreement.