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Abstract
Under the terms of the agreement, Silver Quest can acquire an initial 51% interest in the property by making cash payments of $290,000 (U.S.), issuing 500,000 shares, and incurring $1,500,000 (U.S.) in exploration and development expenditures over a three year period. The Company has a further option to increase its interest to 75%, by paying an additional $1.0 million (U.S.), issuing an additional 500,000 shares, and incurring an additional $1.75 million (U.S.) in expenditures. The area under option is comprised of forty unpatented claims under lease, and an adjacent 89 claims controlled 100% by Corcoran Canyon Mining Corp., a wholly owned subsidiary of Bullion River.
The Corcoran Canyon deposit is a volcanic-hosted, low-sulfidation, silver-gold, and epithermal system extending for more than 5.5 km along a northeast-trending structural zone defined by alteration, veining, gold-silver mineralization, faulting, and intrusions. Mineralization occurs in quartz-vein stockworks and breccias within sericitized, argillized and silicified volcanic rocks. With the Corcoran Canyon acquisition, the Company continues to add to its expanding exploration activities in North America, with a focus on resource stage projects. Mr. Robert Weicker is the Qualified Person, as defined by National Instrument 43-101, for the Corcoran Canyon property and is responsible for the preparation of the technical information in this release and verified the scientific and technical information and opinions contained herein by reviewing the underlying data. A finder's fee consisting of 50,000 shares is payable to Mr. Alan Matthews related to the acquisition of the Corcoran Canyon property. The above transactions including the cash payments and the issuance of shares to Bullion River and related to the finder's fee are subject to acceptance by the TSX Venture Exchange.