Earn-in agreement with Ramelius Resources Ltd.
Located in Nevada
Epithermal mineralization at the Tertiary unconformity and Carlin-type gold mineralization hosted in Cambrian-Ordovician stratigraphy
The Jupiter property is located at the south end of the Quinn Canyon Range, approximately 46 kilometers (14 miles) NW of the town of Rachel in Nye County, Nevada.
On June 15, 2017 The Company signed a binding terms sheet with Ramelius Resources Ltd. granting Ramelius the right to earn a 75% interest in the property by spending US$3,000,000 over a 5-year period. Ramelius paid the Company a one-time payment of US$25,000 upon signing the Binding Terms Sheet, must spend US$250,000 in the first year (completed) before it may withdraw from the agreement, and must spend a minimum of US$100,000 in subsequent years to maintain the agreement. Following completion of the earn-in, Ramelius will carry the Company’s share of joint venture expenditures up to Ramelius making a Decision to Mine. Upon making a Decision to Mine, the Company must either contribute to ongoing joint venture expenditures in proportion to its ownership interest, dilute to a royalty interest, or allow Ramelius to provide project financing for the Company, whereby Ramelius increases its project interest to 80%.
The Jupiter project contains a structurally complex package of Cambrian and Ordovician carbonate sediments overlain by Tertiary volcanics. Gold bearing jasperoids are widespread at the base of the Cambrian section and along the Tertiary-Paleozoic unconformity. Anomalous gold in rock chips (up to 3.2 g/t) and widespread anomalous As, Sb and Hg characterize the system, which outcrops over a strike length of nearly 5 kilometers (1.5 miles). Mapping and microfosssil age determinations have led to the understanding of a Cambrian over Ordovician thrust fault and has facilitated the development of several target areas focusing on the Cambrian-Ordovician unconformity, a known host of significant mineralization in Nevada and elsewhere.
The area was explored by several companies dating back to the early 1980s, mostly focused on epithermal targets in the Tertiary volcanic rocks. Geologix Exploration was the first company to drill in the Paleozoic sediments, testing 3 areas of gold bearing jasperoids hosted in Cambrian carbonates and intersecting gold in drill holes (best intercept 10’ @ 1.15 g/t Au). In 2015, Kinetic Gold staked the property and completed a new geologic map aided by several biostratigraphic age determinations, leading to a reinterpretation of stratigraphy and structure and the generation of several new target areas. The property was optioned to Ramelius in 2017, who have drilled 16 holes to date and encountered several gold intercepts on the east side of the project (best intercept 30’ @ 1.10 g/t Au).