Getchell to lease Dixie Comstock to Montana Goldfields

Executive Summary

• Getchell Gold Corp. has entered into a 20-year mining lease agreement with Montana Goldfields LLC to explore and develop the Dixie Comstock gold mine in Nevada.
• The transaction includes an initial payment of $25,000, annual minimum advance royalties of $25,000, and significant mandatory exploration expenditure commitments over the first three years.
• The lease grants Montana Goldfields the option to purchase up to 2% of the Net Smelter Return (NSR) royalties (1% from Getchell and 1% from Canagold Resources) for $1 million each.

Key Details

• Lease Term: 20 years.
• Counterparty: Montana Goldfields LLC (privately held Nevada corporation with principals having over 100 years of combined mineral resource experience).
• Property: Dixie Comstock gold mine, located in Churchill County, Nevada (160 km east of Reno), consisting of 44 unpatented mining claims covering 725 acres.
• Initial Payment: $25,000 USD payable upon execution of the lease agreement.
• Annual Royalties: Minimum advance royalty payments of $25,000 USD due on the first anniversary of the effective date and annually thereafter.
• Exploration Work Commitments:
  • Year 1: No less than $100,000 USD.
  • Year 2: No less than $200,000 USD.
  • Year 3 and subsequent years: No less than $300,000 USD.
• Royalty Structure:
  • Montana Goldfields agrees to pay Getchell Gold a 2% Net Smelter Return (NSR) production royalty.
  • An existing 2% NSR royalty is owed to Canagold Resources Ltd. (via American Innovation Minerals LLC) under a deed dated April 19, 2024.
• Purchase Options for Montana Goldfields:
  • Option to purchase up to 1% of the Getchell Gold NSR royalty for $1 million USD.
  • Option to purchase up to 1% of the American Innovation Minerals (Canagold) NSR royalty for $1 million USD.
• Historical Context: The mine was a past small-scale producer (1935–1942) with cumulative production of 4,182 ounces of gold and 6,737 ounces of silver. Historic drilling (1982–1991) delineated a mineralized zone trending north-northeast, approximately 100 meters thick, traced for 200 meters down dip.
• Regulatory Update: A wilderness survey area (WSA) that previously constrained development was released in December 2022, removing impediments to mining and development.

Notable Quotes

• None provided in the text.