In a news release, Riley Gold Corp. (RLYG:TSX.V; RLYGF:OTCQB) announced it "has significantly increased its land holdings near and adjacent to the Pipeline West/Clipper Project (PWC), located 80 kilometers southwest of Elko, Nevada."
The acquisition consists of two claim blocks spanning 1.26 square miles in Lander County. The additional land closes the property gap, along strike, between Riley Gold's early-stage exploration project, PWC, and the Nevada Gold Mines joint venture' (Barrick Gold and Newmont) Gold Acres, Gap and Pipeline deposits, located within the Cortez complex portion of the Battle Mountain-Eureka Trend.
Cortez trend portion of the Battle Mountain – Eureka Trend and Riley Gold land holdings
"We were happy to be able to execute agreements that strategically fills the gap, along strike, between our PWC property boundary and the Gold Acres/Gap/Pipeline deposits controlled by the Nevada Gold Mines JV. This property transaction was important in order to enhance Riley Gold's district-scale land package and cover the west-to-east extension of the Wenban geological unit that is known to be the host of gold mineralization in this district, including gold production at the Nevada Gold Mines JV, Pipeline and Cortez facilities," said William Lamb, Riley's executive chairman.
"An exploration program will be designed to enhance the known information within the district as well as garnered from previous historical work, where Riley Gold believes that the Wenban target was not tested adequately," Lamb added.
The company noted that the "Lease Agreements have an initial term of 10 years (with the option to extend for a second 10-year term) whereby the Company must incur annual minimum lease payments during the initial 10-year term totaling US$305,000 and work commitments totaling US$1,275,000. On the commencement of commercial production, the annual minimum lease payments shall terminate and be replaced with a 4.0% gross smelter return royalty (GSR) which Riley Gold has the right to buydown to a 2% GSR at varying amounts adjusted for inflation."
The Pipeline West/Clipper Project now totals 9.5 square miles (24.7 square kilometers) and "constitutes a very prospective, early staged exploration property for Carlin-type disseminated and replacement gold deposits," the company stated. [NLINSERT]
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