Gold Bull Executes LOI to Acquire Coyote Mine Project, Utah
VANCOUVER, British Columbia, Sept. 16, 2020 (GLOBE NEWSWIRE) -- Gold Bull Resources Corp. (TSX-V: GBRC) (“Gold Bull” or the “Company”) is pleased to announce it
has executed a Letter of Intent (“LOI”) to acquire 100% of the Coyote Mine project (“Coyote” or the “Project”) from private company Desert Mountain Gold LLC. Coyote is located in Juab County,
Western Utah, USA and is considered prospective for gold and silver mineralisation. The Project comprises 83 lode mining claims for approximately 1,715 acres and two State Metalliferous Mineral
Leases for approximately 1,370 acres for a total of 3,085 acres.
Gold Bull has the option to acquire 100% of the project by making an ongoing annual payment of US$50,000 which will convert to a 3% net smelter royalty (NSR) in favour of Desert Mountain Gold LLC upon production commencing. Gold Bull will have the election to reduce the net smelter royalty by paying $1,000,000 per 1% NSR reduction, to reduce up to 2% of the NSR. Completion of a definitive agreement is subject to Gold Bull completing detailed due diligence of the Coyote Project.
- High grade historical drilling results of up to 8.19g/t gold (Au) and 1060g/t silver (Ag)1
- Sporadic and shallow historical drilling has not adequately tested the main target/feeder zone because the shallow zone is typically leached of metal sulphides
- Multiple high grade rock chip sample results, however poor location data provided (requires field verification during due diligence period)
- Prospective and fertile geological setting including a 150m outcropping jasperoid vein
Figure 1. Photo of the Coyote Mine
Figure 2. General location of Coyote Project
Gold Bull Chairman, Craig Parry commented, “We view Western Utah as highly prospective yet underexplored region. Utah is a mining friendly state and it is a jurisdiction that Gold Bull will be taking a closer look at. We look forward to learning more about the Coyote project as the historical numbers are extremely encouraging.”
Coyote Project Overview
The area of interest is located in the Great Basin portion of the Basin and Range Province of the western United States. The general landscape of the area is dominated by north-south trending fault-block mountain ranges separated by intervening sediment-filled basins or valleys. The age of most of the rocks in the mountain is Precambrian and Paleozoic. The rocks are mostly shales, quartzites, and carbonates (dolomite and limestone). There are intrusive and extrusive rocks found in the valleys and mountains and are generally of Tertiary age. The source of much of the volcanism is calderas. The youngest rocks are Quaternary in age and are mostly lake deposits, stream deposits, and alluvial fans along the mountain fronts. In the Great Basin the drainage is mostly interior, i.e., the rivers and stream do not flow out to the ocean. They flow into closed basins found between the mountain ranges. The streams in the area of consideration flow into the Sevier Lake, which is a closed basin and has no outlet to the sea.