Getchell Gold (CSE: GTCH) announced that it executed the definitive agreement with Canarc Resources (TSX: CCM) whereby Getchell will have the option to acquire 100% of the Fondaway Canyon and Dixie Comstock properties located in Churchill County, Nevada.
In a press release, Getchell said it is in the process of delivering the initial cash and share payments as required by the agreement. In total, the Toronto-based miner will pay Canarc $2 million in cash and $2 million in Getchell shares and will grant Canarc a 2% NSR in the projects.
Canarc drilled 7 holes in 2017 at Fondaway Canyon. All of them intersected multi-gram mineralization, both within the area of the historical estimate and outside
Fondaway Canyon was the subject of a 2017 technical report that yielded a historical estimate of indicated resources of 409,000 oz. Au grading 6.18 g/t and inferred resources of 660,000 oz. Au grading 6.4 g/t.
Dixie Comstock, on the other hand, has a historic resource estimate, and mineralization remains open down-dip and to the east. The deposit is classified as a low-sulfidation epithermal system localized along an east-dipping range-front normal fault.
“The acquisition of these two properties, boasting significant gold in the ground, dramatically transforms and elevates Getchell in prominence which is further enhanced by the recent strength in the price of gold,” Bill Wagener, Getchell’s CEO, said in the media brief.