Providence options La Dama de Oro from Mohave
Executive Summary
- Providence Gold Mines Inc. entered an option agreement to acquire 100 % of the La Dama de Oro gold property from Mohave Gold Mining.
- The agreement requires issuance of up to 4.5 million common shares and cumulative cash expenditures of $970,000 over four years to earn the interest.
- A NI 43‑101 technical report has been prepared by Ethos Geological Inc. (qualified person Zachary Black) and submitted for review, confirming the property is at an early exploration stage with no defined mineral resource.
Key Details
- Option Structure:
- Year 1: Issue 2 M common shares; incur $20,000 of expenditures within 12 months of effective date.
- Year 2: Issue additional 2 M common shares; incur $250,000 of expenditures before the second‑year anniversary.
- Year 3: Issue additional 500,000 common shares; incur $250,000 of expenditures before the third‑year anniversary.
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Year 4: Incur $250,000 of expenditures before the fourth‑year anniversary (no share issuance).
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Total Consideration: Up to 4.5 M common shares and $970,000 cash expenditures over four years.
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Property Description:
- Historical gold mine located in the Silver Mountain mining district, eastern California shear zone intersecting the San Andreas fault zone.
- Geology: Mesozoic quartz monzonite intruding Jurassic sidewinder volcanics; low‑sulphidation epithermal Au‑Ag vein system.
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Largest known vein width: 4.5 ft, open at depth and laterally.
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Technical Work:
- NI 43‑101 technical report prepared by Ethos Geological Inc., authored by Zachary Black, SME‑RM (qualified person).
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Report submitted for exchange review; property remains in early exploration stage with no mineral resource estimate.
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Permitting: Property holds an approved exploration permit that includes a bulk sample option.
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Management Comment: Ronald A. Coombes (President & CEO) highlighted the historic production and discovery potential of La Dama de Oro.
Notable Quotes
“The best place to explore for gold is where gold is. With the rich historical history of past gold production at the La Dama de Oro mine, there remains very good discovery potential.” – Ronald A. Coombes, President & CEO, Providence Gold Mines Inc.