The Company, through its US subsidiary Endurance Resources Inc. (ERI), owns or has an option for a 100% interest in about 7,000 acres in the Rattlesnake Hills Gold District, Natrona County, Wyoming.
On August 10, 2015 the Company announced its intent to sell its 100% interest in the Rattlesnake Hills Property with the execution of a letter of Intent ("LOI") with GFG Resources (US) Inc. ("GFG") Under the terms of the LOI, GFG may acquire the Company's Rattlesnake Hills 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. Subject to the satisfactory completion of due diligence, closing is scheduled to occur on or before September 30, 2015.
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 of Evolving Gold Corporation ("EVG") located on EVG's 14,250 acre Rattlesnake Hills Property. At the North Stock Discovery, drill results previously announced by EVG 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.
Within the Endurance property, the company now 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 cover 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 spatially associated with the intrusions is observed in Archean basement in a few 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 Endurance's property host 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 EVG's North Stock Discovery and one (1) kilometre east along the interpreted structural trend from EVG'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 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, consisting of 180 lode mining claims and 3 Wyoming state leases, 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. Once the Company has earned its interest the Vendor has the right to a 1% NSR on both the Vendor and the Company's federal lode mining claims. Half of the NSR can be purchased by the Company for US$500,000 at any time.
Given the encouraging exploration results generated on the adjoining property, including a new gold discovery announced in 2014 by a company that had optioned the EVG Property , 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.