Silver Range Resources Ltd (CVE:SNG) (OTCMKTS:SLRRF) (FRA:8SR) announced that it has amended its Cold Springs property option agreement with Supernova Metals Corp (CVE:SUPR) (OTCMKTS:ABETF) (FRA:A1S1).
Silver Range has granted Supernova the right to acquire a 100% interest in the property by issuing 1 million common shares to Silver Range on or before June 30, the company said. Silver Range will retain a 2.5% net smelter return (NSR) royalty, of which 60% can be repurchased for $1.25 million. The original deal was announced on September 4, 2020.
Cold Springs is located 80 kilometers (km) east of Fallon and 66km west of Austin in Churchill County, Nevada, an area with numerous low sulphidation epithermal gold showings. The property is underlain by rhyodacitic tuffs and flows with gold mineralization exposed on a hilltop occurring in classic low sulphidation epithermal veins, the company said.
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Historical grab sampling of these veins returned assays up to 64.9 grams per ton (g/t ) gold and 1,280 g/t silver, while initial sampling by Silver Range in 2016 returned grab samples up to 20.1 g/t gold and 1,770 g/t silver from similar material.
In early 2021, Supernova drilled four diamond drill holes to test a conceptual target in the Cold Springs Valley west of a range front fault. It was hypothesized that the feeder system to the mineralization found on the hilltop may have been down dropped by the range front fault and was represented by IP geophysical anomalies that were identified in the valley to the west of the fault, the company said.
The drill holes intersected a broad fault zone containing silicified volcanic rock and quartz vein clasts that resemble the silicified hydrothermal breccia and quartz veins on the hilltop, but no significant assay was returned from the program.
The hilltop area remains a significant exploration target as the limited historical reverse circulation drilling completed in this area has not adequately tested the mineralizing system and additional drilling is warranted to fully evaluate the potential of the property.
Overall, Silver Range has assembled a portfolio of 45 properties, eight of which are currently under option to others and three of which have converted to royalty interests. The company is actively seeking other joint venture partners to explore the high-grade precious metals targets in its portfolio.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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