Independence Mining has optioned the Buckhorn South project in eastern Nevada from Royal Gold (RGLD-Q) in return for an interest in two of the former’s properties.
Independence has agreed to spend at least US$425,000 on the Buckhorn South project, which consists of 265 unpatented claims in Eureka Cty. Royal would, however, retain a 14% net profits interest in the property.
To date, Royal has outlined a north-trending zone of mineralization measuring 1,400 by 600 ft. Royal has completed 32 reverse-circulation holes (totalling 21,920 ft.) on the property.
For the chance to explore the Buckhorn South, Independence has agreed to transfer a portion of its interests in the Carico Lake property, in Lander Cty., and the Lone Mountain property, near Independence’s Jerritt Canyon gold mine.
At Carico Lake (which consists of 391 unpatented claims), Independence can either transfer all of its interest or grant to Royal a 15% net profits interest on any production from the property.
At Lone Mountain (49 claims), Independence can either transfer all of its interest or convey a 2% net smelter return royalty on any production.
Independence has until June 1, 1998, to make any decisions.
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