The Company, through its US subsidiary Endurance Resources Inc. (ERI), owned or had an option for a 100% interest in about 7,000 acres in the Rattlesnake Hills Gold District, Natrona County, Wyoming.
In October 2015, GFG Resources Inc. ("GFG") acquired Endurance's 100-per-cent interest in the Company's Rattlesnake Hills property through the payment of US$150,000 in cash to Endurance, and the issuance of 1,400,000 GFG shares to Endurance (850,000 GFG shares issued on closing and the balance of 550,000 GFG US shares paid in February 2017). Additional bonus share payments totaling 750,000 GFG shares are payable under certain circumstances. Endurance retains a 2% net smelter returns royalty ("NSR") on Endurance's former mining claims. GFG can purchase one half of the 2% NSR at any time, for a cash payment of US$1,500,000.
Through the Sale, the Company has exchanged its 100% ownership in a portion of the Rattlesnake Hills Gold District for a 2% NSR royalty on 7,000 acres and a share ownership in GFG, which now controls, under one owner, about 33,500 acres which constitutes the entire Rattlesnake Hills Gold District.
The geological setting of the Rattlesnake Hills Gold District is similar to a large scale alkaline intrusive hosted gold deposits within the Rocky Mountain alkaline gold province, that include Cripple Creek, in Colorado, that has produced 20 million ounces of gold to date. The Rattlesnake Hills Gold District encompasses an area over 15 square kilometres and hosts the North Stock Gold Discovery also owned by GFG. At the North Stock Discovery, drill results include 2.92 grams per tonne ("gpt") gold over 146.3 metres ("m"), 10.8 gpt gold over 67.1 m, and 2.74 gpt gold over 131.1 m associated with breccia related to the Tertiary intrusions.
The Endurance 2% NSR Property encompasses eighteen mapped Tertiary volcanic breccia-phonolite complexes which define both the northern half and eastern and western extensions of the Rattlesnake Hills Gold District, Wyoming. These Tertiary-aged volcanic complexes are related to the known gold mineralization in the district.
The Endurance 2% NSR Property covers widespread areas of Tertiary phonolite (alkalic) intrusions emplaced into Precambrian aged sediments and metavolcanics. Most of the intrusions have associated pyroclastic breccia. Crackle breccia and adularia alteration spatially associated with the intrusions is observed in Archean basement in exposed areas on the Endurance 2% NSR Property. Some of these areas of breccia and alteration have elevated gold values in grab samples. This geological environment is identical to that hosting the North Stock Discovery, where gold mineralization occurs in breccia zones within and surrounding the alkalic intrusions.
Robert T. Boyd, P.Geo. is a qualified person as defined in National Instrument 43-101 and supervised the compilation of the information forming the basis for this summary.