The 20-acre Elk Lode patented claim complements and lies nearly adjacent to the Company's patented and unpatented holdings at the Bruner site. It was identified during a due diligence land search and brings the total patented land position to approximately 500 acres.
Currently, the 2014 drilling program is underway and engineering studies have commenced on portions of the Bruner site.
"The addition of the Elk Lode claim will add flexibility to future development plans for the Bruner project, which thus far has delivered positive initial drilling and testing results," said Bob Coale, CEO of Patriot Gold. "We are extremely pleased with the progress being made to ensure rapid project development and look forward to reporting on testing results from some of the 2014 drilling program in the near future."
The Bruner Project
The Bruner Project is situated in central Nevada, 15 miles north of the Paradise Peak mine, 45 miles northwest of Round Mountain and 25 miles east of the Rawhide mine. Historic production from the Bruner property included about 100,000 ounces at an average grade of 0.56 opt gold.
Patriot Gold's Option To Optionee/Operator
Patriot Gold owns 100% undivided rights, title and interest in the project which is subject to certain royalties and an earn-in option agreement for 70% interest. The earn-in optionee/operator has the right to earn 70% interest in the Bruner project by spending $6 million over seven years and may earn an additional 5% by completing a bankable feasibility study for a total of 75% interest in the project. Subsequent to the optionee/operator earn-in, financing of the project will be on a proportional basis.
Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.