An agreement with Consolidated Shoshoni Gold (VSE) to acquire a 50% interest in Shoshoni’s Transmitter Hill gold property in Utah has been entered into by Goldstack Resources (VSE). The property is adjacent to the Yellow Hammer property where Goldstack has made a copper-gold discovery.
To acquire its 50% interest, Goldstack will issue to Shoshoni 100,000 common shares of the company at $1.30 per share; spend $200,000 on the property during the first 24 months, with the option of a 12-month extension by spending a total of $300,000; and issue to Shoshoni 100,000 common shares of the company at $1.30 per share on completion of the work program. Clifton Gold Corp. has a 3% net smelter return (NSR) from all mineral production from the property. Goldstack and Shoshoni have the option of purchasing the 3% NSR for $1 million within the next five years. Goldstack is in receipt of $520,000 from a Swiss private placement and this will be used for a 20,000-ft. drill program on the property. The program is expected to start soon.
Drilling will explore a skarn-type target carrying bismuth-gold mineralization as well as tungsten and copper mineralization. Nearby underground workings dating from about the early 1900s disclosed values of up to 0.4 oz. gold per ton.
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