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Logan Resources to lease Angel Wing in Nevada
Logan Resources Ltd (CVE:LGR) said it has signed a mining lease and purchase option agreement to which Logan will acquire a lease over certain unpatented mining claims located in Elko county, Nevada, known as the Angel Wing property.
This transaction will effectively consolidate the greater part of the Viper District in northeastern Nevada, USA. With the addition of the Angel Wing Property, the size of the consolidated Viper Project is 1,756.6 hectares.
This transaction will form part of the Option Agreement with Pilot Gold Inc. that Logan entered into, where it may acquire up to an 80% interest in up to four of nine gold mineral exploration properties located in Nevada and Utah, USA.
One of the nine Pilot Gold properties, the Viper Project, consists of 40 unpatented mining claims on public lands under BLM jurisdiction, together with additional third party ground.
The Angel Wing Agreement brings an additional 87 adjacent and interlocking claims into the project area, effectively merging the two focus areas of historic work. This will allow exploration of the entire four-kilometer strike length of the main mineralized trend.
As a part of the Angel Wing Agreement, Logan has also been granted access to the historic work completed on the Angel Wing Property. An extensive database exists, including results of rock chip sampling, soil sampling, geophysical surveys, hyperspectral and isotopic studies. Over 6,700 meters of drilling has been confirmed at this time, with additional historic drilling under review.
Past exploration carried out on the Viper Project by Pilot Gold includes geologic mapping, geophysical surveys, soil sampling, rock chip sampling, and over 3,350 meters of drilling. Exploration by Pilot Gold on the Viper Project claim block returned surface rock samples to 11.8 g/t Au, and significant drill intercepts. The Logan team is currently reviewing this information and performing QA/QC checks and will report results in a future news release.
“The consolidation of the adjacent Angel Wing claims will provide important access to a greater continuity of land that has significant expansion and development potential. Based on the geology and historic work, further exploration of the Viper Project is warranted. Additional work will include focusing on assembling a comprehensive, 3D district scale model, designed to better define the main feeder structures. Logan anticipates this program of work will be successful in generating future drill targets,” said Logan’s CEO & Director, Mark Morabito.
Viper is an early-stage, low-sulfidation epithermal gold target, located in northeastern Nevada. The nearest community is the town of Montello, located approximately 60 kilometers to the southwest. The Viper property is unique in that mineralization is hosted by Permian/Triassic silty limestone and silicified conglomerate which are overlain by unmineralized Miocene rhyolite and dacite.
The gold system is believed to be coeval with the felsic volcanic rocks, and similar in age and character to the nearby Jarbidge district. Gold mineralization at the Viper property is closely related to the presence of quartz-calcite veins and vein stockworks. Individual veins exhibit exceptional bladed and lattice epithermal textures, and free gold is visible in a number of outcrops.
Details of the Angel Wing Agreement
- All dollar amounts listed below are in United States dollars.
- Logan, through its wholly-owned subsidiary Logan Resources USA, Inc., has been granted a lease over the Angel Wing Property and all rights to the use of the surface and subsurface of the Angel Wing Property held by the current owner. The lease is for an initial term of 20-years.
- Logan has also been granted the option to purchase the Angel Wing Property outright for a purchase price of US$500,000. Subject to certain conditions, up to 50% of the purchase price may be paid in common shares of Logan.
- The vendor has been granted a Net Smelter Return Royalty (the “Royalty”) over the claims at a rate of 2.0%. The Royalty has a buy-down provision pursuant to which the Royalty may be reduced to 1.0% in return for a payment of $1 million.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/174934/logan-resources-to-lease-angel-wing-in-nevada-174934.html
