Smooth Rock Acquires the Giroux Project
Vancouver, British Columbia--(Newsfile Corp. - April 21, 2020) - Smooth Rock Ventures Corp. (TSXV: SOCK) ("Smooth Rock" or the "Company") is pleased to announce it has entered into an Exploration Lease with Option to Purchase Agreement (the "Agreement") on the Giroux Project, located in Mineral County, Nevada, within the Walker Lane shear zone.
The Giroux Project consists of 12 patented claims and 36 unpatented mining claims with a combined area of 390 hectares (965 acres), located 60 miles south southeast of Hawthorne, Nevada, less than 1 mile off a main state highway with easily accessible year-round access.
The Giroux Project is located within the Walker Lane shear zone and consists of sediments with numerous felsic intrusives. Silicified fault zones and trends have been explored and mined via shafts, pits, and adits. At least one shaft is reported to have a depth of over 700 feet. Of particular interest is the presence of an overthrust nickel bearing serpentinite formation. In addition to nickel mineralization, the property contains gold, copper, silver, as well as lead-zinc and barite mineralization.
The Property hosts the past producing Giroux Mine, the mine is reported to have produced high-grade nickel ore in the late 1800s (Mining Districts and Mineral Resources of Nevada, Lincoln, 1923). This places the Giroux Mine as one of two historical high-grade nickel producing mines in Nevada. Historical production of copper, silver, gold, zinc, and barite also exist on the property. The Giroux property contains numerous historical workings consisting of underground workings with multi-level vertical shafts, several adits at different sub-levels, open pits, and existing roads that provide access to the historical workings.
Seven miles east from the Giroux Project, along the trend in similar rock types is the past producing Candelaria Mine, one of the largest open pit silver mines in the history of Nevada. During the modern open pit mining, the metals of interest were silver, gold, zinc, copper, lead and antimony. The non-metals were barite.
The Giroux Project is located in close proximity to past producing mines such as Marietta, Moho, Camp Douglas and Candelaria. Giroux has been held by private interests throughout its history. There are no work commitments subject to any portion of the properties.
A regional geological mapping and sampling program by the property's current owner yielded significant results. Historical grab sampling result highlights include: 1.17% Ni, 1.6% Ni, 1.7 % Ni, 3.9% Ni. taken from outcrops, old workings and mine dumps. A Geophysical program has been completed on the Property by the current owner, indicating several potential drill targets.
The Company has begun Phase I of the Giroux exploration program which will consist of reconnaissance prospecting, geological mapping, surface trenching, sampling, and relocating historical workings. This reconnaissance program will provide accurate modern data to assist in the planning of the phase II drill program. Phase I is estimated to last for three to four weeks, with phase II expected to begin following the compilation of the phase I results, later in 2020, pending drilling permits. The exploration programs are contingent on potential impacts from the current worldwide COVID-19 pandemic and the safety of Company personal and contractors.
The term of the Agreement continues for ten (10) years, subject to the right to extend the Agreement for two (2) additional terms of ten (10) years each, and subject to an option to purchase 100% of the Property. Full consideration of the Agreement consists of the following: (i) the issuance of 3,000,000 common shares of the Company within 5 business days upon receiving TSX Venture Exchange approval. (ii) an initial cash payment of $20,000.00 USD (paid) upon the execution of the agreement. (iii) $20,000.00 on the first anniversary of the effective date and any succeeding anniversary of the effective date.
Smooth Rock has the exclusive purchase option and right to acquire 100% ownership of the Property (the "Option"). The purchase price of the Property shall be USD $200,000.00 (the "Purchase Price").
The Giroux Property is subject to an 1.5% Gross Production Royalty payable to the property vendor, of which one-half of a percent (.5%) may be purchased from the Vendor at any time prior to Commencement of Commercial Production for a cash payment of $200,000.00. The transaction is subject to TSX Venture Exchange final approval.
The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by E. Gauthier, geol., Eng (OIQ), 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
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.
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