Vancouver-based Goldcliff Resource Corp. (GCN:TSX.V; GCFFF:OTCBB), in a news release reported that it signed an option to purchase a "100% interest in a new discovery of epithermal mineralization, 33 km north of Rock Creek, British Columbia." Goldcliff Resource's President George Sanders made the announcement and noted that prospecting by the vendor identified a large area in a recent clear-cut with abundant quartz and carbonate float.
Sanders added that the prospect will be known as the Kettle Valley Gold Project and that follow up sampling at the site yielded highly anomalous gold and silver values with multiple samples that exceeded 0.25 g/t Au, with some values as high as 2.38 g/t Au and 43.49 g/t Ag.
The company pointed out that the vendor of the property is a well-known B.C. geologist, Wayne Murton, P. Eng., who has decades of experience in the Beaverdell-Christian Valley district and previously served as manager of the Beaverdell Highland Bell silver mine. The firm stated that though the property has never been drilled, Murton had made observations that several indications of mineralization were noted on new logging roads. Subsequent follow up efforts then resulted in the discovery of quartz subcrop/float in new clear-cut areas which had been logged.
The option agreement provides that "Goldcliff may purchase a 100% interest in the Kettle Valley Gold project by making cash payments of $450,000 over five years and incurring $1,000,000 of exploration expenditures over three years." The firm said that the vendor is entitled to retain a Net Smelter Return (NSR) royalty of 2.5%; however, Goldcliff is granted the right to purchase back a 1% NSR in exchange for a payment of $1,000,000.
The vendor is also entitled to receive several large additional milestone payments based upon the findings of a completed Measured and Indicated resource report. The milestones payments will range from $1-5 million depending upon the total size of the resource and the number of ounces of gold equivalents produced.
The company reported that it will continue to focus on its operations in Nevada with additional exploration planned for the Nevada Rand project and an acquisition of a position in another Nevada district. The firm noted that it felt compelled to quickly option the Kettle Valley Gold opportunity due to its management team's high professional regard for Murton's geologic knowledge and experience in the region. Goldcliff indicated that it will commence a detailed mapping program, conduct additional sampling and a geochemical Lithic Drainage Sediment program while it simultaneously prepares a permit application for a trenching and drilling program.
The company additionally outlined that it has arranged a non-brokered private placement of flow through shares "consisting of 4,500,000 flow through shares at a price of $0.12 per share for gross proceeds of $540,000." The firm stated that several company insiders plan to subscribe to the offering and that proceeds raised will be applied to the Canadian exploration expenses on the Kettle Valley Gold project.
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