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 US 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 US shares to Endurance (850,000 GFG shares issued on closing and the balance of 550,000 GFG US shares subject to issuance). Additional bonus share payments totaling 750,000 GFG US shares are payable under certain circumstances. Endurance retains a 2% net smelter returns royalty ("NSR") on Endurance's former mining claims. GFG US can purchase one half of the 2% NSR on or prior to December 31, 2017 for a cash payment of US$750,000, and thereafter, 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 and significant share ownership in GFG, which now controls, under one owner, the consolidated Rattlesnake Hills Gold District.
On June 27, 2016 Crest Petroleum Corp announced that they planned to complete a reverse takeover with GFG which would result in GFG shareholders owning 88% of the ultimate resulting TSXV issuer, whose name will be changed to GFG Resources Inc.
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 2% NSR 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 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.
The area of the most encouragement to date on the Endurance 2% NSR 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.
Given the encouraging exploration results generated to date in the district, including a new gold discovery announced in 2014, further exploration activities including additional soil geochemistry, geophysics, handheld XRF surveys and drilling on GFG's Rattlesnake district gold 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.