Goldcliff has acquired a lease on the Wilson Patented claims, a key land position within the advanced stage Pine Grove gold project located in Lyon County, Nevada. The Pine Grove Gold Project is currently being developed by Lincoln Mining Corp. Goldcliff is earning a 40% joint venture interest by spending $1,400,000 US over three years. This advanced stage project is comprised of two deposits, the Wilson and the Wheeler, which host cumulative measured and indicated resources of 3,060,000 tonnes of 1.37 g/t Au at a 0.24 g/t cut-off. The Wilson deposit on the Wilson patented claims contains 1,373,000 tonnes of 1.20 g/t Au (43-101 Technical Report, Pine Grove Project by Telesto Nevada, Inc. dated February 4, 2015).
The Pine Grove project is road accessible 21 miles southeast of Yerington, Nevada. The property lies within the central portion of the Walker Lane geologic province near its western margin. Since 1991, 87,967 feet in 272 RC and core holes have been drilled by Lincoln and previous operators. This drilling outlined the surface and near surface resource blocks in the Wilson and Wheeler deposits. Lincoln also conducted metallurgical testing to establish that mineralization responds to heap leach processing. The project has been advanced to the Preliminary Economic Analysis level of detail.
Goldcliff has made an upfront payment to the lessor of $61,729.84 to cover two years of arrears on advance royalty payments plus interest. Goldcliff will assume the obligation of $25,000 annual advance royalty payments and a 2.5% Net Smelter Return (NSR) royalty on all production from the patented claims. These payments and obligations form part of Goldcliff's earn-in threshold.
The lessor is also entitled to a NSR royalty of 5% on all Lincoln Mining located claims within a six-mile area of influence, excluding other patented claims that comprise a portion of the Pine Grove project. Goldcliff has purchased for $25,000, a six-year option to buy down the NSR to 3% at a rate of $75,000 per percentage point for three years, and $150,000 per percentage point for an additional three years.