Nevada Rand is a low to intermediate sulphidation epithermal target located in Mineral County Nevada, about 20 miles north east of Hawthorne. A prospect shaft was first sunk in 1909 and was eventually deepened to 450 feet by the mid 1920’s. Reports of shipments from the shaft indicate very high grades of gold and silver.
This early development was undertaken as a prospecting activity and early production was of a “bootstrap” nature, lacking systematic ore development ahead of extraction, so sustained production was never achieved.
There is strong anecdotal evidence that high grade mineralization may still be found in the shaft area. Mineralization of argentite, polybasite and pyrargyrite, along with a high silver to gold ratio are indicative of “boiling zone” grades typically associated with this style of epithermal setting.
The Nevada Rand property is situated within a compelling regional structural setting. On a property scale, surface alteration and old mine dumps demonstrate that the main zone extends over two kilometres. There are examples of multiple parallel structures. The property has never been drilled.
Goldcliff has the right to purchase a 100% interest in Nevada Rand, from Nevada Select Royalty LLC, a wholly owned subsidiary of Ely Gold Royalty Inc., for payment of $250,000 USD over four years. Goldcliff paid Nevada Select $10,000 USD upon signing of the agreement with a further $15,000 USD to be paid six months from the date of signing. On each of the first, second and third anniversaries of signing, Goldcliff will pay $25,000 USD. A final payment of $150,000 USD will be made on the fourth anniversary and a 100% property interest conveyed to Goldcliff.
Nevada Select will retain a Net Smelter Return royalty of 2.5%. Goldcliff will make minimum advance royalty payments of $10,000 USD on the first, second and third anniversaries of signing and $20,000 USD on subsequent anniversaries. Goldcliff has the right to buy down 1% for a payment of $1,000,000 USD.
Ed Rockel, P. Geo., a Qualified Person as defined by National Instrument 43-101, supervised the preparation and verification of the technical information contained herein.