Providence adds disclosure to La Dama de Oro option NR
Executive Summary
- Providence Gold Mines Inc. entered into a definitive option agreement to acquire 100 % of the La Dama de Oro gold property from Mohave Gold Mining, subject to a 2 % net smelter royalty (with an optional buy‑back of 1 % for $500,000).
- The option requires issuance of up to 4.5 million common shares and cumulative cash expenditures of $770,000 over four years, contingent on regulatory approval.
- A NI 43‑101 technical report has been prepared by Ethos Geological Inc. (qualified person Zachary Black) and submitted for review; the property remains at an early exploration stage with no defined mineral resource.
Key Details
- Option Structure:
- Year 1: Issue 2 M common shares from treasury; incur $20,000 in expenditures within 12 months of effective date.
- Year 2: Issue additional 2 M common shares; incur $250,000 in expenditures before the second‑year anniversary.
- Year 3: Issue additional 500,000 common shares; incur $250,000 in expenditures before the third‑year anniversary.
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Year 4: Incur $250,000 in expenditures before the fourth‑year anniversary (no share issuance).
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Royalty Terms: Mohave Gold Mining retains a 2 % net smelter royalty; Providence may repurchase 1 % of that royalty for $500,000 USD.
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Regulatory Condition: Option is subject to regulatory approval; the property currently holds an approved exploration permit that includes a bulk sample.
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Technical Report:
- Prepared by Ethos Geological Inc., Bozeman, MT.
- Qualified Person: Zachary Black, SME‑RM (NI 43‑101).
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Report submitted for exchange review; cautions that the property is at an early exploration stage with insufficient data for a mineral resource estimate.
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Geological Overview:
- Located in the Silver Mountain mining district, eastern California shear zone intersecting the San Andreas fault zone.
- Host rock: Mesozoic quartz monzonite intruding Jurassic side‑winder volcanics.
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Mineralization: Structurally controlled, low‑sulphidation epithermal gold‑silver vein system; largest known vein 4.5 ft wide, open at depth and laterally along the La Dama de Oro fault.
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Management Comment: Ronald A. Coombes (President & CEO) stated: “The best place to explore for gold is where gold is… there remains very good discovery potential.”
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.