Silver Spruce Resources (TSXV: SSE) has entered a letter of intent as of this morning to acquire a 50% interest in the Jackie Gold project, located in Sonora, Mexico. The LOI, entered into with Colibri Resource Corp, will see a joint venture formed for the property between the two firms upon the completion of certain terms outlined within the document.
The Jackie Project is found within the Sonora Gold Belt of Northern Mexico, located roughly six kilometres from the Nicho deposit that is currently under development by that of Minera Alamos. A number of other mines are located within a 100 kilometre radius as well, including operations by Argonaut Gold, Alamos Gold, and Agnico Eagle among others.
The property itself is said to be 1,130 hectares in size, while being easily accessibly by via vehicle on unpaved roads and trails. Power is located somewhat nearby along Highway #16, from where the southerly road leading to the property passes through the company’s El Mezquite property, where there are areas of known gold mineralization.
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Geological teams are to be on site in mid-October to conduct geological mapping, soil and rock geochemistry, as well as various modeling and analysis. From here, the company will work with Colibri to push forward with permitting for drilling.
The terms of the agreement will see Silver Spruce pay to Colibri US$25,000 in cash and C$25,000 in common shares as the first payment within seven days of the LOI being approved by the TSX. To earn its 50% interest in the property, a further US$25,000 in cash and C$25,000 in common shares will have to be paid to Colibri within twelve months of exchange approval, along with US$100,000 in exploration being spent on the property.
Upon completion of the terms, the two firms will enter a joint venture arrangement for the property. All expenses at this point will be equally shared between the two firms.
Silver Spruce Resources last traded at $0.075 on the TSX Venture.
Information for this briefing was found via Sedar and Silver Spruce Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
