NEVADA - Blackrock Gold announced that, together with its namesake U.S. subsidiary, it has entered into a purchase agreement for 20 mining claims directly adjacent to its Silver Cloud project in Elko County.
Silver Cloud is a 4,537-hectare claim block located near the confluence of the Carlin Trend and the Northern Nevada Rift within the north-central part of the Silver State.
In a press release, the Canadian miner said that the new unpatented lode mining claims, collectively known as the West Silver Cloud property, border Silver Cloud's Northwest Canyon target, where Placer Dome encountered 1.5 metres of 12.5 g/t gold back in 2002.
According to Blackrock, the acquisition will allow its experts to focus on expanding strike potential beyond the original property boundary.
"New data gleaned subsequent to past drilling by both Teck and Placer indicates that the low sulphidation epithermal vein system on Silver Cloud runs in an east-west direction, not north-south as previously thought and guided the limited drilling done on the project in the past," the firm's CEO Andrew Pollard, said in the media statement. "Placer Dome encountered significant mineralization near the western border of our project, and it has been a top priority to secure the neighboring parcel of land prior to commencing exploration activities, allowing us to test open strike potential in our phase one drill program currently being planned."
To move ahead with the buyout, Blackrock and its U.S. subsidiary have to pay the vendor $5,000 upon closing of the transaction, issue 150,000 shares of the common stock of Blackrock Gold Corp., and issue warrants for the purchase of 50,000 shares of the common stock of the parent company Blackrock Gold Corp.
Once the agreement is finalized, Blackrock will have the option to purchase all of the grantee's right, title and interest in and to the royalty at any time. The purchase price payable on exercise of the royalty option will be $500,000.
This story first appeared on www.Mining.com.