Northern Lights has given Reyna Silver an option to earn an initial 75% interest in the Medicine Springs Project by completing a minimum exploration expenditure of US$2.4 million by December 31, 2023 with US$700,00 to be spent before December 31, 2021.
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I’m Megan Edwards for Investmentpitch Media
Northern Lights Resources has executed a property option and joint venture agreement on its Medicine Springs Project.
Northern Lights has given Reyna Silver an option to earn an initial 75% interest in the Medicine Springs Project by completing a minimum exploration expenditure of US$2.4 million by December 31, 2023 with US$700,00 to be spent before December 31, 2021.
The Medicine Springs Project comprises 149 unpatented Federal mineral claims covering 1,189 hectares located in the Ruby Mountains Valley just off the famous Carlin Trend, with the potential to host silver-zinc-lead Carbonate Replacement Deposit mineralization.
Reyna Silver can acquire an additional 5% by paying US$1 million.
Northern Lights will have a free carried interest on all exploration expenditures on the Medicine Springs Project until Reyna Silver has spent a minimum of US$4 million, after which Northern Lights will contribute to joint venture expenditures on an equity basis.
This agreement is subject to completion of the usual due diligence.
Please refer to the news release for additional details.
Jason Bahnsen, Northern Lights CEO, stated: “We are delighted to have Reyna Silver as a joint venture partner on the Medicine Springs Project. Medicine Springs is a CRD system with high-grade silver potential similar to Reyna Silver’s flagship Guigui Project in Mexico. This joint venture leverages the exploration work that Northern Lights has completed on the project together with the proven CRD expertise of Dr. Peter Megaw and the team at Reyna Silver. We look forward to working together with Reyna Silver to accelerate unlocking the potential of Medicine Springs.”
Since acquiring an option on the Medicine Springs Project in 2017, Northern Lights has completed exploration work including detailed geological mapping, rock sampling, analysis of historic geophysical survey data, review of historic exploration drilling, an aeromagnetic survey and an Ionic Leach soil geochemistry survey.
The historic 125 shallow reverse circulation drill holes on the Medicine Springs Project encountered partially oxidized silver-zinc-lead mineralization at depths of up to 180 meters intersecting silver grades of up to 225 grams per tonne.
An extensive rock sampling program was completed in 2018 with a total of 66 samples collected in conjunction with surface mapping.
Of the 66 samples collected, 27 samples assayed greater than 20 grams per tonne silver and there were 17 samples with silver assays exceeding 100 grams per tonne up to a maximum value of 559 grams per tonne.
Northern Lights has an initial approved exploration drill program of approximately 4,900 meters in place for the Medicine Springs Project.
Reyna Silver intends to start work on the property immediately with a focus on evaluation and the start of exploration core drilling.
Dr. Peter Megaw, Technical Advisor to Reyna Silver, commented: “Medicine Springs ticks the most important boxes we look for in CRD exploration including location on a large regional structure that hosts significant CRDs, situated at the top or a thick section of potentially favorable carbonate host rocks and evidence of high silver grades. Some of the dump and rock chip samples run well over our 400 g/t (12 oz/t) silver threshold and it is quite likely that similar grades were diluted by the Reverse Circulation drilling used historically in the district. We will be drilling core to get a true picture of the clearly structurally-controlled mineralization as we trace it towards its source.”
Northern Lights can now focus on its Secret Pass gold exploration project in Arizona.
Northern Lights' initial goals for the Project are to confirm high grade historic drilling results, generate a NI 43-101 compliant resource estimate for the Tin Cup Zone, and to establish additional exploration targets over the rest of the 868 hectare license area.
The shares are trading at $0.08.
For more information, please visit the company’s website, www.NorthernLightsResources.com, contact Rick Timcke, President, at 604-608-6163 or email rtimcke@NorthernLightsResources.com, or contact Jason Bahnsen, CEO, at 604-608-6163 or email jason@NorthernLightsResources.com.
I’m Megan Edwards for Investmentpitch Media
