November 26, 2020 – Vancouver, Canada - Guyana Goldstrike Inc. (the “Company” or “Goldstrike”) (TSXV: GYA, OTC: GYNAF) is pleased to announce that the Company has entered into a definitive option agreement (the “Agreement”) to acquire the San Diego mineral claim group (“San Diego” or the “Property”), a gold/copper prospect located in the Golden Triangle, British Columbia from Granby Gold Ltd. (“Granby”), an arms-length private company.
The San Diego mineral claim group is located in the Alice Arm area, approximately 55 km southeast of Stewart, British Columbia in what is known as the Golden Triangle. The Property comprises 5 mineral tenures, 100% owned by Granby, covering an area of approximately 769 hectares.
San Diego lies at the southern end of a series of structurally controlled zones of disseminated high-grade Cu-Au mineralization, which includes Homestake, Vanguard and Red Point, collectively known as the Copper Belt. There are several mineral occurrences (“Showing” or “Showings”) known on the Property.
The San Diego Showing, which has been previously drilled, has highlighted intersections of 3.66 metres grading 1.9% Cu and 2.4 g/t Au and 14.6 metres grading 2.64% Cu and 0.96 g/t Au. A 12 metre chip sample immediately below the drilling location assayed 0.7% Cu and 1.99 g/t Au.
The Raspberry Showings extend along a strike length of approximately 250 metres and have yielded rock samples of 0.31% Cu and 0.45 g/t Au.
The Knoll Showing is approximately 150 metres north of the Raspberry Showings and consists of a 20-metre-high by 20-metre-long outcrop. Test-pitting of soil anomalies in this area has defined a mineralized strike length exceeding 100 metres with rock samples up to 0.38% Cu and 0.75 g/t Au.
Under the terms of the Agreement, the Company will be granted the right to acquire up to a one-hundred percent interest in the Property in consideration for completing a series of cash payments totaling $800,000 over a five year term, of which $10,000 is due and payable to the Company initially, and incurring expenditures on the Property of at least $900,000 over a five year term. Granby will retain a 2.5% NSR on the Property with the Company having a right to make a one time buy-down of 1% of the NSR for $1,000,000. The Company is required to make the cash payments, and incur the expenditures, in accordance with the following schedule in order to maintain the Agreement in good standing and acquire the Property:
|
Payment Dates |
Cash Payments |
Expenditures |
|
Signing |
$10,000 |
- |
|
1st Year Anniversary |
$20,000 |
$30,000 |
|
2nd Year Anniversary |
$40,000 |
$50,000 |
|
3rd Year Anniversary |
$60,000 |
$70,000 |
|
4th Year Anniversary |
$70,000 |
$250,000 |
|
5th Year Anniversary |
$600,000 |
$500,000 |
|
Total |
$800,000 |
$900,000 |
Property Portfolio
The Company anticipates that the Property will form part of a portfolio of exploration-stage gold projects and does not anticipate that the majority of its working capital or resources will be devoted to the Property in the next twelve months. No finders’ fees or commissions are payable in connection with the Agreement.
Qualified Person
Christopher Campbell, P. Geo is a Qualified Person in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Campbell has reviewed and approved the scientific and technical content of this news release.
For more information please visit www.guyanagoldstrike.com.
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
Peter Berdusco
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the intended development of the Property, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.