We are an exploration stage company engaged in the acquisition and exploration
of properties that may contain gold and other mineralization primarily in the
United States.
Bullfrog Project
The “Bullfrog Project” lies approximately 4 miles west of the town
of Beatty and 120 miles northwest of Las Vegas, Nevada. Standard Gold initially
acquired in 2011 a 100% right, title and interest in 79 lode claims and 2 patented
claims that contain approximately 1,600 acres subject to a 3% net smelter royalty.
On October 29, 2014, Rocky Mountain Minerals Corp. (“RMM”) a wholly
owned subsidiary of the Company, entered into an Option Agreement (the “Option”)
with Mojave. Mojave holds and possesses the purchase rights to 100% of 12 patented
mining claims located in Nye County, Nevada. This property is contiguous to
the Company’s Bullfrog Project and covers approximately 156 acres, including
the northeast half of the Montgomery-Shoshone (M-S) pit mined by Barrick Gold
in the 1990’s.
Mojave granted to RMM the sole and immediate working right and option with
respect to the property until the 10th anniversary of the closing date, to earn
a 100% interest in and to the property free and clear of all charges encumbrances
and claims, save and except a sliding scale NSR Royalty.
In order to maintain in force the working right and Option granted to it, and
to exercise the Option, RMM granted Mojave 750,000 shares of common stock and
paid $16,000. RMM must pay to Mojave a total of $190,000 over the next 10 years.
For reference, Barrick Bullfrog Inc. (“Barrick”) terminated a lease
on these patents after they ceased operations in late 1999.
On March 23, 2015, RMM entered into a Mineral Lease and Option to Purchase
Agreement with Barrick involving 6 patented mining claims, 20 unpatented mining
claims, and 8 mill site claims located four miles west of Beatty, Nevada and
covers approximately 444 acres. These properties are strategically located adjacent
to the Company’s Bullfrog Gold Project and include two patents that cover
the southwest half of the M-S open pit from which Barrick produced approximately
220,000 ounces of gold by the late 1990’s. Underground mining in the early
1900’s produced approximately 70,000 ounces of gold from the M-S deposit.
Also included in the agreement is the northern one third of the main Bullfrog
deposit where Barrick mined approximately 2.1 million additional ounces by open
pit and underground methods. In addition to prospective adjacent lands, these
acquisitions provide the potential to expand the M-S deposit along strike and
at depth and in the northern part of the main Bullfrog deposit.
The Company also has access to Barrick’s substantial data base within
a 1.5 mile radius of the leased lands to further advance its exploration and
development programs. To maintain the lease and option, the Company must spend
$1.5 million dollars within five years on the Barrick properties and then pay
Barrick 3.25 million shares of the Company’s common stock while providing
a 2% gross royalty on production from the Barrick properties. Overriding royalties
of 5% net smelter returns and 5% gross proceeds are respectively limited to
three claims and two patents in the main Bullfrog pit area. Barrick has retained
a back-in right to reacquire a 51% interest in the Barrick properties, subject
to definition of a mineral resource on the Barrick properties meeting certain
criteria, and reimbursing the Company in an amount equal to two and one half
times Company expenditures on the Barrick properties.
Significant drilling is required to test projections of mineralized trends and
structures that extend for considerable distances to the north and east of the
M-S pit on the original lands acquired by the Company in 2011. Located east
of the M-S pit is an area 700 meters by 1,300 meters in which there is only
one shallow hole from which there is no data available. Only a small portion
of this area may be prospective, but the area certainly warrants additional
study and exploration drilling.
There is only one drill hole located about 150 meters northeast of the M-S
pit limit and another hole 1,000 meters northeast of the pit along strike of
a major geologic structure. In this regard, the Company’s lands extend
nearly 5,000 meters north-northeast of the pit and there has been very little
drilling in this area, even though several structures have been mapped by Barrick
and others.
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