- Crestview Exploration (CSE:CRS) has announced it has signed a lease agreement for the Divide Mine in Nevada.
- Initial royalty payments for the lease total $C533,000 over 5 years, with $208,000 owing yearly after that
- A buyout clause of $2.7 million has also been inserted into the contract, which can be exercised at any time
- Crestview will begin magnetic mapping of the site before outlining drilling targets
- Crestview Exploration (CSE:CRS) is trading up 11.5 per cent at $1.26 per share with a market cap of $15 million
Crestview Exploration Inc (CSE:CRS) has announced it has leased, with an option to buy, the Divide Mine in Elko County, Nevada.
The third party agreement comes with a five year royalty plan, and a C$2.7 million buyout clause.
Crestview must fork out $34,000 initially, then on the first anniversary of the deal being struck, another $48,000.
The payment then climbs to $69,000 in year two, $104,000 in year three, $139,000 in year four and $208,000 for the fifth year and each year thereafter.
The company’s first step on the property is to begin magnetic mapping of the site, to determine drill targets for its exploration program.
The Divide Mine is a high grade previous metal vein target located, and has been assayed before.
The northern Nevada property consists of 12 unpainted lode claims covering 247 acres. The claims cover the majority of the old workings and potential strike extension of the historic Divide Mine.
Divide Mine is located in the historic mining district of Tuscarora.
That historic mining region once produced 200,000 ounces of gold and 7.27 million ounces of silver. In more recent times, Horizon Gold Corporation pulled out 39,976 ounces of gold and 254,000 ounces of silver at the Dexter open pit mine.
Currently, American Pacific Mining Corp is exploring for gold on their property, close to the Divide Mine property.
Crestview is excited about the possibilities their new mining lease could hold for them.
Crestview’s Vice President of Exploration, M. J. Abrams, said the Divide Mine had similarities to the company’s own Rock Creek project, located just a mile west of the newly acquired property.
“Given the geological environment, location and tenor of mineralization, the Divide property has complexing exploration potential deserved of a major drilling campaign.
“We plan to incorporate what we have learned there into our work at the Divide Mine; as well as utilise the synergy of having two similar projects in close proximity to lower overall exploration costs on both properties,” he added.
Crestview Exploration (CRS) is trading up 11.5 per cent at $1.26 per share at 3:00pm EST.