Silver Standard Resources (SSRI) is pleased to announce it has signed an option agreement (the "Agreement") to acquire a 100% interest in the Perdito project, located in Inyo County, California.
In November 2015, we completed duplicate surface sampling of 20 selected samples to confirm previously reported gold grades. Our results ranged from anomalous to over 10 g/t gold (presented in Figure 1 and Table 1).
In addition, we staked 144 claims to the north of the original claim boundary, collecting grab samples at claim corners. This sampling returned gold grades of up to 0.87 g/t. The area requires further reconnaissance and sampling.
During December 2015 , we also completed airborne geophysical surveys over an area of approximately 420 km2 consisting of 2,097 km of flight lines at 200 meters spacing. The results from the surveys will be analyzed and are expected to aid in drill targeting and structural interpretation of the property.
Carl Edmunds , Silver Standard’s Chief Geologist said, "We are excited by this exploration project that shows characteristics of a Carlin -type gold deposit. The project leverages our in-house expertise on similar deposits and run-of-mine heap leach operations. In parallel with our brownfields exploration programs at both Marigold and Pirquitas, the Perdito project is part of our strategy to continue to invest in future growth through all parts of the business cycle."
"The results from our preliminary work at the project confirm the presence of high-grade near-surface gold mineralization, containing over 10 g/t gold, and geophysical anomalies, which warrant further exploration. In 2016, our exploration efforts at Perdito will focus on confirming historic drilling and expanding the extent of known mineralization."
Under the terms of the Agreement, we will explore the Perdito project during a thirty-six month option period. The Agreement includes option payments in the aggregate amount of $710,000 during the option period to maintain the option in good standing and exercise our right to earn a 100% interest in the Perdito project.
If we exercise our right to acquire the property, we will make annual pre-production payments to the owners in the amount of $250,000 beginning on the fourth anniversary of the Agreement and will pay an additional $1,500,000 on commencement of commercial production. We will also grant to the owners a 3% net smelter return royalty on commercial production, subject to buy-down rights in our favour.
The Perdito project is located 240 km east of Las Vegas, Nevada in Inyo County, California and covers an area of approximately 5,780 hectares. The project is situated 5 km from Highway I-36 and benefits from established infrastructure in the region. Formerly, the Perdito project was called the Conglomerate Mesa project.
Gold mineralization is sediment-hosted and typically near-surface and structurally-controlled by steeply dipping reverse faults which channeled gold-bearing hydrothermal fluids to the surface. The project is situated between the past-producing polymetallic districts of Cerro Gordo and Darwin which lie on the north north-west "Darwin Trend".
Previous exploration work completed by companies including BHP Billiton Ltd. and Newmont Mining Corporation demonstrates that mineralization and geochemistry at the Perdito project is typical of the Carlin -type sediment-hosted gold systems found in northeastern Nevada . Highlighted previous reverse circulation and diamond drillhole results reported by Great Bear Resources Ltd. in its news release dated April 18, 2013 are compiled in Table 2 and include:
"Discovery Hole" CM97-4 which returned 99 meters of 1.1 g/t gold from surface, including 9.1 meters at 3.46 g/t gold from 15.2 to 24.4 meters, and 12.2 meters at 3.43 g/t gold from 42.7 to 54.9 meters, and
Drillhole CGL-2 which averaged 2.71 g/t gold over 6.1 meters from 97.5 to 103.6 meters.
We have budgeted approximately $1.5 million in 2016 to systematically drill the known targets and continue field investigations on newly defined areas to the north of existing targets. The proposed drill program will consist of 10 to 14 drill holes from seven drill pads, totaling approximately 3,000 meters.
We submitted a Plan of Operations to the Bureau of Land Management in December 2015 to re-open a pre-existing drill road and perform exploratory drilling. We are in the process of completing the necessary ground surveys around the proposed drill sites and an Environmental Assessment as part of our application for drilling permits anticipated later this year.