Vancouver, British Columbia – TheNewswire- May 10, 2022: Gold Basin Resources Corp. (the “Company” or “GXX”), (TSXV:GXX) (OTC: GXXFF) is pleased to announce the signing of an option agreement to consolidate its ground position on the Gold Basin gold oxide project in northwestern Arizona.
Option agreement signed to acquire 100% interest in forty (40) unpatented mining claims located between the Cyclopic and Stealth deposits, consolidating the entire Gold Basin project area.
The new ground has excellent potential to host extensions of the Cyclopic and Stealth mineralization.
Historical drilling on the Option claims has already intercepted gold mineralization, notably at the Red Cloud deposit, which lies southeast of the Stealth deposit on the same northwest structure.
The Company also staked 74 new claims adjacent to its existing land package to secure exploration targets identified by geophysical survey data.
The total area of claims under the control of the Company will increase to 40 km as soon as these claims are granted.
Gold Basin CEO Michael Povey said: “We are extremely happy to sign This agreement and acquire security over the entire mineralized footprint of the gold basin. The new land, located between the Cyclopic and Stealth deposits, has been owned by the current owners for a considerable period of time, so the option agreement is a particularly welcome development as it allows the company to finally integrate all key areas of Gold Basin together as a contiguous land “package”. This is the first time that this consolidation of adjacent properties has been carried out, so it is a very important step for the Company. Exploration on these claims has historically been limited, however, previous exploration in the 1980s and 1990s intercepted promising gold mineralization at the Red Cloud deposit south of Stealth, with land between the Cyclopic and Stealth deposits largely remaining not drilled. Given their location with respect to structural geology, these concession areas have excellent potential to host extensions of known mineralization from the Cyclopic and Stealth deposits, so we look forward to evaluating these additional targets as we seek to increase the overall resources of Gold Bassin.”
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Map 1: Gold Basin Project land status
Option Claims Overview
Map 1 delineates the current status of the Gold Basin lands with the claims subject to the Company’s option agreement shown in blue. The claims form a set of contiguous lands and follow a north-westerly oriented diagonal for approximately 6 km between the Cyclopic and Stealth deposits, 100% owned by the Company.
Under the option agreement, Gold Basin Resources may acquire a 100% interest in the claims by paying US$750,000 in variable annual installments over a period of up to 9 years. The first year payment amount is $25,000, with increasing annual payments totaling $350,000 in year 7.
The Company, at its sole discretion, may exercise the option at any time during the option period.
Upon execution of the option, the current owners will receive a 3.5% net profits interest royalty, which will be paid out of the profits from the production of the claims. The Company has the right, within 10 years of the grant, to buy back 1.5% of the royalty by paying $3 million to the royalty holders.
About Gold Basin Resources Corporation
Gold Basin Resources is engaged in mineral exploration and the acquisition of mineral assets in North America, including the Gold Basin property located in the Gold Basin mining district of Mohave County, Arizona, which includes five mineral rights and 294 unpatented mining concessions. totaling 30.8 square kilometers. A total of 74 new unpatented claims and an option to acquire additional claims extended the total land footprint to 40 square kilometers.
On behalf of the Board of Directors
Chairman and Chief Executive Officer and Director
For more information, please contact:
Andrew Mendelawitz, Investor Relations
This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. All statements , other than statements of historical fact, included herein, including, without limitation, future results of the full PQ Core work program at the Cyclopic Deposit, the Company’s expectation that it will succeed in adopting its business plans, as well as the anticipated business plans and timing of the Company’s future activities, are forward-looking statements. Although the Company believes these statements to be reasonable, it cannot guarantee that these expectations will prove to be correct. Forward-looking statements are generally identified by words such as: “believes”, “will”, “expects”, “anticipates”, “intends”, “estimates”, “plans”, “may” , “should”, “potential”, “expected”, or variations of these words and similar phrases and expressions, which by their nature refer to future events or results that may, might, might or will occur or be made or achieved. In making the forward-looking statements contained in this press release, the Company has applied several important assumptions, including, without limitation, that there will be investor interest in future financings, that market fundamentals will result in sustained demand and prices for precious metals, the receipt of all necessary permits, licenses and regulatory approvals in connection with the future exploration and development of the Company’s projects in a timely manner, the availability of fina ence on appropriate terms for the exploration and development of the Company’s projects and the Company’s ability to comply with environmental requirements, health and safety laws.
The Company cautions investors that the Company’s forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in the forward-looking statements due to a variety of factors, including, operations and technical difficulties related to mineral exploration and development activities, the actual results of exploration activities, the estimation or realization of mineral reserves and mineral resources, the inability of the Company to obtain the necessary financing to carry out its business and affairs as currently contemplated, the timing and amount of estimated future production, production costs, capital expenditures, costs and timing of new field development, additional capital requirements, future prices of precious metals, changes in general economic conditions, changes in financial markets and in the market demand and price of commodities, lack of investor interest in future financings, accidents, disputes labor and other risks of the mining industry, delays in obtaining approvals, permits or financing nts or in the completion of development or construction activities, risks related to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on the business, financial condition and results operations of the Company, changes in laws, regulations and policies affecting mining operations, title disputes, failure of the Company to obtain necessary permits, consents, approvals or clearances, including from the TSX Growth, the timing and possible outcome of any pending litigation, environmental issues and liabilities and risks related to joint venture activities, and other risks and uncertainties disclosed in the Company’s latest MD&A and filed with certain securities commissions in Canada. All of the Company’s Canadian public filings are available through www.sedar.com and readers are encouraged to consult such filings.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any forward-looking statements contained in this press release or incorporated by reference herein, except as otherwise required by law. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any forward-looking statements contained in this press release or incorporated by reference herein, except as otherwise required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.