The joint venture will contain Q-Gold’s holdings of 3 patented historic silver mines and 22 adjoining U.S. Bureau of Land Management (“BLM”) mining claims in the Peck Mining District of Yavapai County, Arizona, totalling 484 acres. The Peck District is famous for its historic high-grade silver production, having produced an “official” 1,374,000 ounces from 1875 to 1910.
By meeting its obligations in U.S. Dollars during the 18-month Option Period, including cash payments to Q-Gold of $275,000, work expenditures of $1,000,000 and issuance of Cavan shares to Q-Gold worth $300,000, Cavan will earn a 65% participating interest in the Joint Venture. During the Option Period, Q-Gold will be Operator for the undertaking.
As noted above, the joint venture area contains 3 high-grade historic silver mines and a number of BLM claims highly prospective for silver, yet it has never experienced modern mining exploration techniques. Therefore, the venture will initially launch a helicopter-based VTEM / Magnetic airborne geophysical survey which will attempt to delineate anomalies which will indicate potential remaining ore bodies and possible drilling sites within the complex.
Q-Gold CEO John Campbell remarked “With silver prices at recent record highs, I look forward to initiating modern joint exploration activities this summer with Cavan at Crown King, in the historic silver-producing Peck Mining District of Arizona.”
Read the press release here.