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.
On October 13, 2015 the Company announced the close of the sale of its 100% interest in the Rattlesnake Hills Property ("Endurance Property") with the execution of a sale agreement ("Sale") with GFG Resources (US) Inc. ("GFG") which was initially announced on August 10 2015. Under the terms of the Sale, GFG acquired the Endurance Property through the payment of US$150,000 in cash, issuing to Endurance 1,400,000 common shares of GFG, and issuing additional bonus share payments totaling 750,000 GFG common shares, only payable under certain circumstances. The Company is also granted a 2% NSR on the Endurance Property with a 1% NSR on the state leases.
Through the Sale, the Company has exchanged its 100% ownership in a portion of the Rattlesnake Hills Gold District for a 2% NSR royalty and significant share ownership in GFG, which now controls, under one owner, the consolidated 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 and located on GFG's adjoining Rattlesnake Hills Property. At the North Stock Discovery, drill results include 2.92 grams per tonne gold ("gpt Au") over 146.3 metres, 10.8 gpt Au over 67.1 metres, and 2.74 gpt Au over 131.1 metres associated with breccia related to the Tertiary intrusions.
The Endurance Property controls eighteen (18) mapped Tertiary volcanic 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 Property covers widespread areas of Tertiary phonolite (alkalic) intrusions emplaced into Precambrian aged sediments and metavolcanics. Most of the intrusions on the Endurance property 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 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.
The area of the most encouragement to date on the Endurance Property hosts gold values in grab samples up to 1.1 gpt Au in crackle breccia. The most encouraging STP-DC target area identified to date is three (3) kilometres north of GFG's North Stock Discovery and one (1) kilometre east along the interpreted structural trend from GFG's Bald Mountain drill target which has reported chip samples up to 7.45 gpt Au and 5.17 gpt Au associated with breccia.
For the optioned portions of the Endurance Property, the terms of the original July 2013 option agreement ("Option Agreement") with a private vendor ("Vendor") provide the Company with the option to earn a 100% interest in the Vendor's property, by completing a total of US$300,000 in exploration expenditures in the district, making US$100,000 in cash payments, and delivering 1.2 million Endurance common shares prior to December 31, 2016. To date, the Vendor has received 400,000 Endurance Shares and $30,000 in cash payments. As part of the Sale, the Company, GFG and the Vendor renegotiated the terms of the Option Agreement resulting in the replacement of the remaining Company shares due to the Vendor with shares of GFG.
Given the encouraging exploration results generated on GFG's adjoining property, including a new gold discovery announced in 2014, further exploration activities including additional soil geochemistry, geophysics, handheld XRF surveys and drilling on the Company's properties are warranted.
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.