Las Vegas, NV - Patriot Gold Corp. (PGOL:OTC) or ("Patriot Gold"), a gold and silver exploration and production company, today announced its Bruner gold project located in Nye County, Nevada has been granted a subsurface water right by the Nevada Division of Water Resources.
Exploration and development proceeds at Bruner
- The new water right approval allows for mining purposes for 0.78 cubic feet per second, or 350 gpm (gallons per minute), on the west side of the Bruner property.
- Combined with the 0.10 cubic feet per second (50 gpm) from the patented ground and the well location on the east side of the property, there is a total of 400 gpm beneficial use for mining purposes and sufficient water for development of up to an 8,000 tpd initial heap leach operation.
- In order to fully exercise the water right, a well at the permitted location must be completed by December 30, 2016, and then placed into beneficial use by December 30, 2017.
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, Canamex Resources Corp. (TSX-V: CSQ) (OTCQX: CNMXF), 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.