- Gold Bull Resources (GBRC) has executed a letter of intent to wholly acquire the Coyote Mine project from private company Desert Mountain Gold
- Gold Bull has the option to acquire 100 per cent of the project by making ongoing annual payments of approximately C$66,000, which will covert to a three per cent net smelter royalty in favour of Desert Mountain
- The company may acquire up to two-thirds of this royalty from Desert Mountain for a total of $2.64 million
- Previous drilling work at the project returned up to 8.19 grams per tonne of gold and 1,060 grams per tonne of silver
- Gold Bull Resources (GBRC) is currently up 16.33 per cent to $0.57 per share
Gold Bull Resources (GBRC) has executed a letter of intent to wholly acquire the Coyote Mine project from private company Desert Mountain Gold.
Located in Juab County, Western Utah, the gold and silver project consists of 83 lode mining claims over 1,715 acres, as well as two State Metalliferous Mineral Leases spanning 1,370 acres.
Under the terms of the agreement, Gold Bull may acquire 100 per cent of the Coyote Mine project by making ongoing annual payments of approximately C$66,000. These will then convert to a three per cent net smelter royalty in favour of Desert Mountain Gold upon the commencement of production.
Gold Bull will also have the right to acquire up to two-thirds of this royalty by paying approximately $1.32 million for each percentage.
Craig Parry, Chairman of Gold Bull Resources, noted that Western Utah is considered to be a highly prospective yet under-explored region.
“Utah is a mining friendly state and it is a jurisdiction that Gold Bull will be taking a closer look at.
“We look forward to learning more about the Coyote project as the historical numbers are extremely encouraging,” he said.
Previous drilling at the project returned significant results, including 8.19 grams per tonne of gold and 1,060 grams per tonne of silver.
However, this work was sporadic, with holes only completed to shallow depths. As such, Gold Bull believes that earlier exploration efforts may have missed the main target zone.
A number of high-grade rock chip samples were also collected, but the associated location data is poor and will therefore require field verification during Gold Bull’s due diligence period, which must be completed before a definitive acquisition agreement can be made.
Gold Bull Resources (GBRC) is currently up 16.33 per cent to $0.57 per share at 1:10pm EDT.
