Smooth Rock Signs LOI to Purchase the Palmetto Project
Vancouver, British Columbia--(Newsfile Corp. - July 2, 2019) - Smooth Rock Ventures Corp. (TSXV: SOCK) ("Smooth Rock" or the "Company") is pleased to announce it has signed an Letter of Intent ("LOI") to complete a definitive Purchase Agreement to acquire a 100% undivided interest in 80 unpatented mining claims totalling 1600 acres in the Palmetto Project, Nevada. The Palmetto Project is located in Esmeralda County, Nevada, within the southern portion of the Walker Lane gold trend.
The Palmetto Gold Project was previously explored by ML Gold Corp. The property has an historic resource estimation completed by WSP Canada Inc. ("WSP") for ML Gold Corp. in 2017 (Palmetto Resource Estimation and Technical Report, April 26, 2018). The mineral resource estimation was completed using NI 43-101 standards of practice and classified as an inferred resource is summarized in the table below.
|Classification||Tonnes (000's)||Au |
|Au oz.||Ag |
0.14 g/t AuEq cut-off
2.0 g/t AuEq cut-off
The open pit estimation was calculated using a pit shell generated by applying certain economic constraints (ML Gold Corp. News Release Oct 2, 2017).
No exploration activities have been completed on the project since the completion of this mineral resource estimate, and Smooth Rock Ventures Corp. considers this historical estimate to be reliable and relevant. To upgrade the historical mineral resource estimate to a current mineral resource estimate, the model and estimation will have to be reviewed and repeated by a qualified person and Smooth Rock is not treating this historic estimate as current mineral resources.
Smooth Rock can purchase an undivided one hundred percent (100%) undivided interest in the Palmetto Property for a total purchase price of $500,000.00 USD as follows: (a) $50,000.00 USD (paid) upon signing of the Letter of Intent for a 30-day option to purchase a 100% (one hundred percent) of the Property, the $50,000 USD option payment will be credited towards the Purchase Price and (b) Upon satisfactory completion of due diligence, within 30 days of the date of the LOI, and/or within five (5) business days of TSX Venture Exchange approval, Smooth Rock shall pay $200,000.00 USD. and (c) On or before one (1) year from the date of the signing of the LOI a final payment of $250,000.00 USD.
Upon full payment of the above purchase price, the Company will have acquired the Palmetto Project free and clear of any outstanding royalties. The Company expects to complete its respective due diligence and execute a definitive Purchase Agreement within the next 30 days.
The Company also announces that phase I of the exploration program on the Garfield Flats Project with Walker River Resources Corp. (see news release 06-07-19) is underway. Phase I of the Garfield Flats exploration program will consist of reconnaissance prospecting, geological mapping, surface trenching, relocating historical workings and 282 kilometers (175 miles) of ground based geophysical surveying. This Phase I program will provide accurate modern data to assist in the planning of the phase II drill program. Phase I is expected to last for six to eight weeks, with phase II expected to begin following the compilation of the phase I results, later in 2019.
The Garfield Flats Project is within the Walker Lane shear zone, a 60-mile-wide structural corridor extending in a southeast direction from Reno, Nevada, located 18 miles southeast of Hawthorne, NV along U.S. Highway 95. The project has excellent year-round access and infrastructure within Mineral County, one of the most pro-mining counties in the pro-mining states and highest-grade gold districts of Nevada.
The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Caitlin Jeffs, PGeo, of Fladgate Exploration Consulting Corp, a consultant of the Company, and an independent Qualified Person as defined by NI 43-101, Standards of Disclosure for Mineral Projects.
ON BEHALF OF THE BOARD
President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT: Smooth Rock Ventures Corp.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46023