Silver North Resources (TSX-V:SNAG, OTCQB:TARSF) said it has finalized an option agreement to acquire the GDR Project in southern Yukon, expanding its mineral exploration portfolio.
The GDR project encompasses three claim groups totaling 150 claims in the Silvertip-Midway district, strategically located near Silver North's Tim silver property, currently under option to Coeur Mining (NYSE:CDE).
The project's geology is prospective for carbonate replacement deposits (CRD), mirroring the exploration focus at Tim and Coeur's nearby Silvertip mine project.
The GDR Project's three properties, Veronica, MR, and MFW claim groups, are accessible by road and trail, exhibiting excellent potential for high-grade silver-zinc-lead CRD mineralization akin to the nearby Silvertip mine project. The properties boast silver-zinc-lead showings and multi-element soil geochemical anomalies, enhancing their attractiveness for further exploration.
Jason Weber, CEO of Silver North, told shareholders that the acquisition is a “strategic move” to acquire additional ground that could hold high-grade CRD silver mineralization in an “under-explored” district.
“Despite the early-stage nature of these properties, all three have favourable characteristics for CRD mineralization. In particular, the Veronica claim group has a strong, unexplained multi-element soil geochemical anomaly just west of our Tim property,” Weber said in a statement.
“This complements the Tim property nicely and gives Silver North access to more of the prospective stratigraphy in this district.”
Under the terms of the agreement, Silver North will make staged cash payments totaling $102,000 over four years, along with staged share payments totaling 1.56 million common shares over the same period. This will earn the company a 100% interest in the GDR project, subject to a Net Smelter Return (NSR) royalty of 2.4%.
In tandem with the GDR acquisition, Silver North has streamlined its portfolio by dropping the lease on the Twin Canyon gold property in southwest Colorado. This strategic decision aligns with the company's goal of optimizing its capital resources and focusing on core assets.