A plan map and drill hole sections of the Silver Reef 2020 Phase Two drill program are available at Silver Reef Phase 2 Drill Program Results.
Analysis of the results from the Phase One and Two drill programs along with the airborne geophysical survey will be used to refine the understanding of the structural controls of the mineralization and identify possible feeder zones that may be associated with the mineralization.
See news releases of September 29, 2020, December 9, 2020 and December 10, 2020 for Silver Reef 2020 exploration program results.
Amanda Tuck, P.Geo is the qualified person responsible for the Silver Reef Property and has reviewed, verified and approved the scientific and technical information on this web site relating to the Silver Reef Property. Ms. Tuck is a geological consultant to the Company and is a “qualified person” as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”).
All samples from the 2020 Silver Reef exploration program were submitted for preparation and analysis by MSALABS at its facilities in Terrace, BC. All samples were analyzed using multi-digestion with ICP finish and fire assay with AA finish for gold. Samples over 100 ppm silver were reanalyzed using four acid digestion with an ore grade ICP analysis. Samples over 1,500 ppm silver were fire assayed with a gravimetric finish. Samples with over 10 ppm gold were fire assayed with a gravimetric finish. One in 20 samples was blank, one in 20 was a standard sample, and one in 20 samples had a sample cut from assay rejects assayed as a field duplicate at MSALABS in Langley, BC.
Under the terms of an option agreement with an arm’s length private vendor, the Company can acquire up to a 70% interest in Silver Reef over a 3-year option period by paying to the vendor:
- $50,000 (paid) and 200,000 shares (issued) in its capital on the signing of the option agreement;
- $200,000.00 and 200,000 shares in its capital on the first anniversary of the agreement; and
- $500,000.00 and 800,000 shares in its capital on the second anniversary of the agreement.
The Company is also required to incur exploration expenditures of $250,000.00 before the first anniversary of the agreement, $750,000.00 of cumulative exploration expenditures by the second anniversary of the agreement and $2 million of cumulative exploration expenditures by the third anniversary of the agreement.
Following exercise of the option, the Company has the right for a period of 120 days to acquire the remaining 30% interest in Silver Reef, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company at its election. If the Company elects to not purchase the remaining 30% interest, the Company and the vendor shall form a joint venture, with the Company appointed the operator. During the first 3 years of the joint venture, the Company will fund the vendor's participating interest in the joint venture. If the vendor fails to sell its interest in the joint venture during such 3 year period, the vendor’s interest will convert to a 3% net smelter returns royalty, provided that the Company will have the opportunity to purchase the vendor’s interest prior to such conversion for $7.5 million.