J-Pacific nabs Callahan

Vancouver-based J-Pacific Gold (JPN-V) has acquired an option to buy the Callahan property in Nevada’s Lander Cty.

The Callahan property consists of 10 patented and 42 unpatented claims overlying a sequence of carbonate rocks, which were laid down in the Cambrian to Silurian periods. Younger siliceous rocks are locally upthrusted on to the carbonate units.

Previous exploration, including trenching and drilling, suggests the property is prospective for high-grade, structurally controlled replacement gold deposits. Historic targets in favourable structures and host rocks have been targeted for follow-up drilling.

To maintain its option, J-Pacific must make annual staged payments until US$500,000 has been paid. Thereafter, the junior can buy the property outright in return for US$20,000 and payment of a 3% net smelter return royalty on future production (minus the initial payments).

The agreement has yet to be approved by regulators.