The West Aurora/Sawtooth property consists of 51 claims located along the northwest portion of the Aurora mining district, NV in the Walker Lane. The Aurora district produced 1.9 million ounces of gold from low sulfidation, quartz-adularia bonanza veins. The district lies nearly equidistant from the Borealis district (+1.5 million ounces Au) ten miles to the northeast, and the Bodie district (+1.5 million ounces Au in bonanza veins) eight miles to the southwest. Together these districts and epithermal deposits form a pronounced NE regional trend.
The Sawtooth Ridge target on Goldcliff’s claims is located immediately northwest of the northern-most bonanza vein deposits in the Aurora district. The target consists of a large 1.5 square mile area of high-level opaline, chalcedonic silica and argillic alteration, hosted by rhyolitic tuffs, flows and shallow intrusive domes. A series of northeast and north trending faults transect the area. The target occurs stratigraphically and structurally above the productive andesite host unit of the main district, and may represent the intact portion of the epithermal system, with uneroded and unmined bonanza veins at depth below the high-level alteration. A shallow drill hole in the area completed in 1989 contained 10 metres of 3 g/t gold, and received only limited follow-up in 1990 with no drilling since. Some of the original data for this drill intercept is missing therefore the information is not being relied upon. Goldcliff plans to drill a twin hole to verify the information. The mineralization appears associated with a NE-trending chalcedonic silica rib that parallels the main productive bonanza veins of the district.
Goldcliff may acquire 100% of the Aurora West Property for a total purchase price of US$425,000. Nevada Select is currently optioning the Aurora West Property from a private company and Goldcliff’s Option Agreement provides for the following payments:
paying Nevada Select US$25,000 at Closing;
paying the private company US$50,000 on September 13, 2021;
paying the private company US$135,000 on September 13, 2021 (at which point Nevada Select will take possession of the Aurora West Property)
making a final payment of US$200,000 to Nevada Select on the fourth anniversary of Closing.
There are no work commitments associated with the Option Agreement.
The private company will retain a 1% Net Smelter Return Royalty. The royalty may be bought down by 0.5% at any time by payment of $1,000,000. Nevada Select will retain a 2% Net Smelter Return royalty. After all buydowns, the net royalty burden will be 2.5%.