Sable Resources (SAE-V) Feb 9, '18 has entered into a binding letter of intent with arm's-length vendors to option the high-sulphidation Don Julio gold project located in San Juan province, Argentina.
The project, which has been privately held since 1990, is located 60 kilometres southeast from Barrick's Alturas project which contains an inferred resource of 211 million tonnes grading 1.00 gram per tonne gold for a 6.8-million-ounce gold resource (Barrick's fourth quarter and year-end 2016 report). Preliminary fieldwork has identified a large diatreme cut by volcanic domes and at least two phases of high-sulphidation mineralization within a four km by three km lithocap coincident with a large robust Au geochemical anomaly, widespread quartz-alunite and illite-pyrite alteration with strong upper-level pathfinders.
"We're hunting for elephants in elephant country," said Tom Obradovich, president and chief executive officer of Sable Resources. "The project has never been explored for high-sulphidation mineralization and our geologists already see key indications to warrant systematic exploration."
Under the terms of he LOI, Sable may earn up to 100 per cent of the project, subject to a 2-per-cent net smelter return royalty, of which one-half (1 per cent) may be purchased by the company for $2.5-million (U.S.) at any time after 12 months from which commercial production has been declared for any part of the project. The terms are structured to allow for a 50-per-cent, 60-per-cent, 70-per-cent or 100-per-cent earn-in at the company's discretion.
To earn 50 per cent of the project, the company shall:
Make payment to the vendors of $25,000 (U.S.) upon signing the LOI;
Issue 200,000 common shares of the company and make payment of $25,000 (U.S.) upon TSX Venture Exchange approval;
Issue 200,000 common shares of the company and make payment of $100,000 (U.S.) to the vendors and complete $300,000 (U.S.) in exploration work on the project prior to the one-year anniversary of the receipt of an environmental impact assessment permit required for drilling;
Issue 200,000 common shares of the company and make payment of $150,000 (U.S.) prior to the second anniversary of the permit date;
Issue 400,000 common shares of the company and make payment of $300,000 (U.S.) to the vendors, and complete $700,000 (U.S.) of exploration work on the project prior to the third anniversary of the permit date.
To earn an additional 10 per cent for 60-per-cent ownership of the project, the company shall also:
Issue 600,000 common shares and make payment of $600,000 (U.S.) prior to the fourth anniversary of the permit date.
To earn an additional 10 per cent for 70-per-cent ownership of the project, the company shall also:
Issue 800,000 common shares and make payment of $900,000 (U.S.) cash to the vendors;
Complete an additional $1.5-million (U.S.) of exploration work on the project prior to the fifth anniversary of the permit date.
To earn an additional 30 per cent for 100-per-cent ownership of the project, the company shall also:
Issue one million shares and make payment of $1.9-million (U.S.) to the vendors;
Complete an additional $1.5-million (U.S.) exploration work prior to the sixth anniversary of the permit date.
The signing of the Don Julio deal is directly in line with the company's upper-level epithermal exploration strategy, identifying endowed terranes and systematically exploring properties in underexplored mineral districts. Due diligence has been completed to the satisfaction of the company over the past 60 days. Drill definition, mapping and sampling are planned to begin immediately following receipt of applicable regulatory approvals. The option is subject to the approval of the TSX Venture Exchange.
About Sable Resources Ltd.
Sable owns 142 square kilometres of mineral tenure and mining leases in the Toodoggone mining district, including the past-producing Baker and Shasta mines, and the 250-ton-per-day Baker mill and tailings facility.
We seek safe harbor
For more information:
Tom Obradovich, President & CEO
tobradovich@sympatico.ca
Tel (416) 985-7140
Or visit sableresources.com |
