CALGARY, AB, Jan. 11, 2022 /CNW/ - North Peak
Resources Ltd. (TSXV: NPR) (the "Company" or
"North Peak") announces that permission has been received
from the Bureau of Land Management (the "BLM") to carry out
its exploration drilling programs on the Black Horse gold and
silver property (the "Black Horse Property") following the
Company obtaining an option in mid-December
2021 to acquire the Black Horse Property from Minex, LLC,
which is summarized below. The Company will post the necessary bond
obligations and can then proceed with the diamond and reverse
circulation drilling programs being designed to confirm and expand
the historical inferred mineral resource estimate for gold on the
previously drilled 2,733 acre Black Horse Property.
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"Since mid-October Jerod Eastman has assisted North Peak in the
BLM application process and in securing the contractors needed
early in 2022 to both drill and explore the potential of the Black
Horse Property, with the aim of delivering a low-cost gold asset to
shareholders," said Brian
Hinchcliffe, Company CEO. "The last gold mining from the 20
plus mine shafts located within the Black Horse Property was over
100 years ago when gold was US$20 per
ounce, and the last drilling was back in 1998 when gold averaged
US$295 per ounce, so Mr. Eastman's
two plus decades as a Nevada based mining engineer will help
kick-start North Peak and the Black Horse Property as new entrants
on to the Nevada mining scene."
Mr. Eastman, who joins North Peak effective immediately, has
held leadership positions with both junior and senior gold mining
Companies, amongst them Kinross
Gold, Goldcorp, Pershing Gold and Nevada Copper, alongside his own successful
mining consulting business. His prior roles have included
Engineering Manager, Mine Manager, General Manager and Project
Director and he has been living and working in Nevada for the past 28 years.
"After having worked as a consultant with North Peak these past
three months, I am excited to take on the role of Chief Operating
Officer and similarly enthused about the prospects of filling out
and leading North Peak's Nevada team while we explore, drill and
analyze the mineral prospects of the Black Horse Property", said
Jerod Eastman, the Company's newly
appointed Chief Operating Officer.
The Black Horse Property has within its boundaries the historic
Black Horse and San Pedro gold mines, amongst the most successful
of the historic gold mines and claims that were mined from 1905 to
1913, during the early years of Nevada's high grade gold camp
mining in the area. Records and texts report that some of the
richest ore ever discovered and reported upon in Nevada came from the Black Horse mine. The
Mineral Resources Data System of the Nevada Bureau of Mines and
Geology currently indicates that there are no less than 21 historic
mine shafts and 20 adits within the boundaries of the Black Horse
Property. Upon the initial gold discovery in the Black Horse
mining district, over 100 individuals staked claims in the area,
starting a rush that emptied out the nearby settlement of Osceola
and initiated the creation of the town of Black Horse (no longer in
existence), which housed 400 people and supported this historic
mining activity.
While there was intermittent mining on the Black Horse Property
after 1913, the last of any real mining and production appears to
be of tungsten ore from 1941 to 1953. Thereafter the only
material activity on the Black Horse Property appears to be the
exploration drilling conducted by the current owner (Minex, LLC) in
the late 1990's. Minex initially acquired these claims in 1997 and
via drilling campaigns in 1997-1998 drilled 316 RC holes that
identified a mineralization zone that appears to have a strike
length of two miles with drilling generally at 100 foot centers. A
historical resource of gold and silver for the Black Horse Property
was outlined in a November 2016
technical report for Minex as described below.
Black Horse Property
- Historic resources – Historical inferred mineral
resource estimates of 350,000 troy ounces of gold with a grade of
1.2 grams gold or 0.045 oz (using a base case cut off of 0.005 opt
Au), plus 1,140 million oz of silver at 0.14 ounce per ton, was
prepared for Minex in a technical report dated effective
November 18, 2016 by Scott E. Wilson, C.P.G. (the "Technical
Report"). A Qualified Person has not done sufficient work for the
Company to classify these historical estimates as a current mineral
resource or mineral reserve. The Company is not treating these
historical estimates as current mineral resources or mineral
reserves and has not verified the historical resource estimates.
While the Technical Report was prepared according to the guidelines
of the CSA's National Instrument 43-101, the reader is cautioned
that the data used in the preparation of the historical resource
estimates does not meet the current standards of exploration
quality assurance and quality control protocols and significant
additional drilling (including diamond drilling, some which will
twin earlier holes), data verification (quality control), and a
site visit would be required to ensure the quality of historic data
meets current standards for use in a resource estimate. Further
information in respect of this historical resource estimates is set
forth below.*
- Historic Metallurgical work – Historic but preliminary
metallurgical work consisting of bottle roll cyanide tests on 12
oxide drill cutting composites and 4 surface sample composites
returned an average recovery of 97% for gold and 73% for silver at
minus 100 mesh in 48 hours.
- Black Horse geology – Approximately 65% of the gold
mineralization occurs in hydrothermally altered and micro-veined
quartzite inter-layered beds of mica schist in the Pre-Cambrian
McCoy Creek group. Most of the gold mineralization in the quartzite
appears to be stratiform and varies from 20-100 feet in thickness.
Gold grades range from below detection to 1.4 ounce per ton over
ten-foot drill assay intervals (see below for further information).
A major thrust structure is present- representing the conduit for
gold fluids. The Cambrian Lincoln Peak limestone overlies the
Precambrian McCoy Creek group and is in the thrust fault contact
with the Precambrian McCoy Creek group.
- Two distinct areas of development – The Black Horse
Property has 2 distinct areas to focus on, known as Area A and Area
B. The Technical Report and its historic estimate of gold and
silver resources refer only to data from Area A and is the oxide
portion of that Area A.
Option
The Company an option to acquire, in stages, 100% of right,
title and interest in the Black Horse Property, as follows:
- First 50% - the Company will acquire right, title and interest
in and to 50% of the Black Horse Property, by making a US$10 million cash payment within 18 months of
the initiation of the option (the "First Payment") and a
second US$10 million cash payment
within 12 months of the First Payment.
- Remaining 50% - the Company will acquire right, title and
interest in and to the remaining 50% of the Black Horse Property by
obtaining material permits required for construction and operation
of a mine on the property. The Company has five (5) years from the
date it acquires the first 50% in the Black Horse Property, to
acquire these permits.
Should the Company exercise the option and acquire 100% of the
right, title and interest in the Black Horse Property, then the
following production royalties will be payable to Minex: (a)
US$50 for every ounce of gold
production for the first 400,000 ounces of gold production from the
property; (b) 2% NSR for any gold production after the first
400,000 ounces of gold production from the property; and (c) 2% NSR
for any silver production from the property.
The Company will issue additional press releases related to its
progress on the exploration of the Black Horse Property and
other material information as it becomes available.
Mr. Eastman's appointment as Chief Operating Officer of the
Company is subject to approval by the TSX Venture Exchange.
Mr. Mike Sutton, P.Geo., a
director of the Company, is the Qualified Person who reviewed and
approved this news release. The Qualified Person has not reviewed
the mineral tenure, nor independently verified the legal status and
ownership of the Property or any underlying property
agreements.
About North Peak Resources
The Company is a Canadian based gold exploration and development
company that is listed on the TSX Venture Exchange under the symbol
"NPR". The Company holds an option to acquire the 2,733 acre Black
Horse gold and silver property located 50 miles east of
Ely within the Black Horse mining
district in White Pine County,
Nevada. See the Company's December
6 and 13, 2021 press releases for additional
information.
*CAUTIONARY NOTE REGARDING HISTORICAL RESOURCE ESTIMATES AND
MINERAL RESOURCES: In respect of the historical mineral
resource estimates referenced above grade shells were interpreted
and constructed and the estimates used inverse distance techniques
in Vulcan software by the author
of the Technical Report. The resource estimates were prepared in
conformity with generally accepted CIM "Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines". No top
cut was used, as it was shown not to be necessary. To demonstrate
the reasonable prospects of eventual economic extraction these
historical mineral resources estimates have been pit constrained.
Whittle™ was used to identify the portion of mineralization that
could support production from open pit mining. It was assumed that
gold and silver would be recovered using crushing followed by heap
leaching of mineralized material. Typical production costs found
throughout Nevada were used as assumptions. The estimates were
based on a gold selling price of US$1,000/oz, mining cost of US$2.00/ton, crushing and leaching costs of
US$4.00/ton, gold recovery of 80% and
a pit slope of 50 degrees. The base case mineral resource estimates
are highlighted at 0.005 opt gold; oxide ore bottle roll results
indicated that 80-85% recovery for gold and 50-60% recovery for
silver are probable on a conventional heap leach at minus 1 inch
feed, which need to be confirmed by cyanide column leach tests on
diamond drill-hole samples collected from different areas of both
deposits. The Technical Report recommended a drill program of 30
drill holes averaging around 275 feet. No economic analysis was
evaluated for the project.
In addition, mineral resources are not
mineral reserves and do not demonstrate economic viability. There
is no certainty that all or any part of the mineral resource will
be converted to mineral reserves.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING HISTORICAL
RESOURCE ESTIMATE: This news release has been prepared
in accordance with the requirements of the securities laws in
effect in Canada, which differ in
certain material respects from the disclosure requirements
promulgated by the Securities and Exchange Commission (the "SEC").
For example, the term "inferred mineral resource" is a Canadian
mining term as defined in accordance with Canadian National
Instrument 43-101 Standards of Disclosure for Mineral Projects and
the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") - CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended. These definitions
differ from the definitions in the disclosure requirements
promulgated by the SEC. Accordingly, information contained in this
press release may not be comparable to similar information made
public by U.S. companies reporting pursuant to SEC disclosure
requirements.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS: This news release includes certain
"forward-looking statements" under applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements with respect timing and completion of
any drilling and work programs on the Property, estimates of
mineralization from drilling, geological information projected from
sampling results and the potential quantities and grades of the
target zones, potential for minerals and/or mineral
resources, and statements regarding the plans, intentions, beliefs,
and current expectations of the Company with respect to the future
business activities and operating performance of the Company that
may be described herein. Forward-looking statements consist
of statements that are not purely historical, including any
statements regarding beliefs, plans, expectations or intentions
regarding the future. Such information can generally be identified
by the use of forwarding-looking wording such as "may", "expect",
"estimate", "anticipate", "intend", "believe" and "continue" or the
negative thereof or similar variations. Readers are cautioned not
to place undue reliance on forward-looking statements, as there can
be no assurance that the plans, intentions or expectations upon
which they are based will occur.
By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, estimates, forecasts, projections and other
forward-looking statements will not occur. These assumptions, risks
and uncertainties include, among other things, the state of the
economy in general and capital markets in particular,
accuracy of assay results, geological interpretations from
drilling results, timing and amount of capital expenditures;
performance of available laboratory and other related services,
future operating costs, and the historical basis for current
estimates of potential quantities and grades of target zones,
as well as those risk factors discussed or referred to in the
Company's Management's Discussion and Analysis for the year ended
December 31, 2020, and the period
ended September 30, 2021 available at
www.sedar.com, many of which are beyond the control of the
Company. Forward-looking statements contained in this press release
are expressly qualified by this cautionary statement.
The forward-looking statements contained in this press
release are made as of the date of this press release. Except as
required by law, the Company disclaims any intention and assumes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Additionally, the Company undertakes no obligation to comment on
the expectations of, or statements made by, third parties in
respect of the matters discussed above.
Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE North Peak Resources Ltd.