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Kermode signs LOI for Rye Patch Silver Mine in Nevada with Gold Range
Victoria, British Columbia - (December 3, 2021) - Kermode Resources Ltd. (TSXV: KLM) ("KLM" or "Company") has entered
---> into a non-binding letter of intent to lease the Rye Patch Silver Mine ("Project") from GOLD RANGE COMPANY LLC ("GRC"
--->).
Find a map of the project online: http://tiny.cc/KermodeGoldRange
The Project comprises two land positions that are approximately 45 kilometres apart: a single patented claim called "A
--->lpha" which is less than 5 acres of private land with Apex Mining Rights covering the Rye Patch Mine operated in the 1
--->870s; and ten (10) claims in a package called the WS, which covers the Green Monster Silver Mine active intermittently
---> from 1936-1967. Both the WS and the Alpha have the potential for high-grade silver discoveries.
The LOI provides for a due diligence period extending to March 1st, 2022. During this period, Company can elect to ent
--->er into a definitive agreement (the "Definitive Agreement") which will formalize the Transaction. Initial due diligenc
--->e is underway now by Carrington Consulting LLC, which is owned by Robert Carrington, who also has an interest in GRC.
--->In addition, work is ongoing to build a digital model of the mine using a handheld LiDAR scanner to estimate historica
--->l tonnage, combined with selective rock sampling to estimate historical grades and form a conceptual estimate for the
--->Rye Patch Mine.
At any time in the due diligence period, Kermode may decide to exercise ("Exercise") the option and lease the Project
--->by issuing a number of shares in Kermode equal to 5% of the issued and outstanding shares to GRC with an Anti-Dilution
---> Clause, a Future Sales Interest, and other conditions. As an expedited transaction, the Company is at arms' length fr
--->om GRC and plans to spend less than half the total exploration budget at Rye Patch next year.
Peter Bell said, "Kermode plans to spend less than half our budget over the next year on this project, but this LOI is
---> very important. It's my first time to strike an option on a new property, and I think the terms are uniquely bullish.
---> The stock-heavy property payment and anti-dilution clause aligns incentives for the explorer and property vendor. The
---> future sale interest is a bullish feature, too. I see this as a unique deal template that starts a new relationship w
--->ith GOLD RANGE."
DUE DILIGENCE PERIOD:
GRC grants KLM a sole and exclusive due diligence period during which GRC and KLM agree to exercise their best efforts
---> to negotiate an agreement for the GRC interest in the Project. During this period, KLM has the exclusive right to con
--->duct such due diligence as it may deem necessary or advisable, including but not limited to researching the title of t
--->he Project and GRC's leasehold interest and mapping and sampling the surface and underground workings.
KLM recognizes and agrees that it will not conduct any activities resulting in significant surface or underground dist
--->urbance including drilling, trenching, road building, drilling, or blasting during the due diligence period and until
--->it has paid to GRC all of the payments, whether cash or stock as may be the case as contemplated herein-below.
TERMS OF THE LEASE:
If the Company Exercises the option to lease the Project, then the following applies:
- Payment terms to acquire the full 100% leasehold interest, subject to all terms and conditions are as follows:
-on signing this LOI US$ 4,225
-on signing Option Lease agreement 5% of KLM
(Anti-dilution Clause)
-end of 1st year payment US$ 3,650
-end of 2nd year payment US$ 3,650
-end of 3rd year payment US$ 6,650
-end of 4th year payment US$ 6,650
-end of 5th year payment through 10th year US$ 50,000
-end of 10th year and thereafter US$100,000
-20 year lease, renewable for 20 year increments. Lease payments under the royalty for the previous five years shall b
--->e credited cumulatively against royalty payment obligations. All Lease payments after the 5th year to be indexed and i
--->ncreased by the compounded US CPI inflation rate each year.
- Half the shares issued on signing the Definitive Agreement will be subject to an Escrow period of one (1) year.
- GRC retains and KLM grants an area of influence extending 1 mile from the exterior boundaries of the Project, in whi
--->ch all claims or properties as may be acquired by KLM or an affiliate or related party will be subject to the contempl
--->ated agreement between KLM and GRC and will become a part of the Property.
- GRC retains and KLM grants a "Future Sales Interest" (FSI) such that if KLM sells or assigns its interest in the pro
--->perty or an affiliate of KLM that holds such leasehold interest GRC will receive five percent (5%) of any such payment
--->s or compensation to KLM arising out of such merger, agreement, sale, transaction or assignment of the contemplated le
--->ase or affiliate of KLM that controls such lease.
-GRC retains and KLM grants a five percent (5%) Net Smelter Returns (NSR) production royalty, which shall be subject t
--->o a buy-down by KLM to 3% NSR for $3M, and subject to an additional buy-down by KLM to 1.5% NSR for an additional $3M.
--->
ANTI-DILUTION CLAUSE:
- If the Company exercises the option to lease the Project, then KLM will issue to GRC that number of common shares of
---> KLM that will increase GRC's equity ownership in KLM to 5%. Thereafter, KLM will have the continuing obligation to is
--->sue additional shares of KLM to GRC to maintain its 5% interest in KLM, at no additional cost to GRC, until KLM has ra
--->ised a cumulative US$2,000,000 in equity. Half the shares issued on signing will be subject to a one (1) year escrow.
- GRC will have the right to participate pro rata in all future financings for three (3) years following the exercise
--->at its own cost to maintain its 5% interest in KLM. When GRC sells shares in KLM issued under the terms of the lease,
--->the amount of the anti-dilution clause decreases on a pro rata basis.
WORK COMMITMENTS:
- KLM commits to conduct at least US$50,000 on exploration on the Property during years 2 through 5 and US$100,000 per
---> year thereafter.
- KLM agrees that it will maintain the GRC lease for the Project in good and marketable condition, will protect and de
--->fend the title to the Project keeping the title free and clear of any and all liens and encumbrances, and that it will
---> reimburse GRC or the Lessor for payment of annual property taxes and other reasonable costs related thereto.
DESCRIPTION OF WS CLAIMS:
The WS Property scomprises those unpatented mining claims identified as WS 101 through and including 110 in the Wild H
--->orse Mining District, Townhip 25 North, Range 32 East, Sections 14 and 15 MDBM, Pershing County, Nevada.
Highlights of results of surface sampling done by GRC at WS are as follows:
Grade (opt Ag)
Sample ID
Sample Description
20.83
R 181-1
Select Grab sample in decline in Green Antimony Mine, simple antimony vein, 2 - 10" wide in core of quartz breccia to
--->3 to 4 feet wide strikes N70W -60E toward another sub-vertical vein. It appears to be near the intersection with a lar
--->ge low angle structure, abundant stibnite, and common remnant pyrite, sample for comparison with the geochemistry of l
--->arger veins to the north.
16.63
R 179
12-foot channel sample perpendicular to structure just outside of portal of decline. Brecciated quartz with abundant F
--->eOx, MnOx, SbOx?, AsOx?. Intense shearing and argillization in hanging wall and in internal shear, which appears to pa
--->rallel zone.
7.29
R 179-2
4-foot channel sample, NW corner at the bottom of winze/raise between decline and upper tunnel.
6.97
W161
32-foot long channel sample outside portal of decline
4.08
R 179-1
6-foot channel sample in an old upper tunnel on the structure. Channel sample perpendicular to strike and dip of struc
--->ture at the top of raise from decline. Brecciated quartz with abundant, locally greater than 50% of the vein by volume
---> gossanous FeOx after sulphides. The green hue indicates abundant As. Channel sample perpendicular to strike and dip o
--->f structure at the top of raise from decline. Brecciated quartz with abundant, locally greater than 50% of the vein vo
--->lume gossanous FeOx after sulphides. The green hue indicates abundant As, the same structure as in 179-2.
The WS project is prospective for high-grade silver, gold, and antimony. It is a grassroots exploration project situat
--->ed in the arid Basin and Range Province of west-central Nevada on lands administered by the Bureau of Land Management.
---> Mineralization in the area was first discovered about 1906 and limited, though unspecified production occurred spora
--->dically from 1918 through about 1967. The principal mine on the property, the Green Monster Silver Mine, was first lo
--->cated during World War I and has produced an uncertain amount of silver antimony ore and produced intermittently from
--->1936 through 1967.
Silver-antimony mineralization occurs within a 2 mile long, north-trending area of recessional weathering, as is commo
--->n of many major mineralized systems in the Basin and Range. High-grade, structurally-controlled silver mineralization
---> occurs in structures ranging from a few inches to more than 12 feet in width hosted in intensely altered and fracture
--->d gabbro. In general, the WS system occurs within an extensive, north-south trending corridor of structurally control
--->led mineralization, which may trend through the nearby Couer - Rochester Open Pit Silver Mine, owned and operated by C
--->oeur d'Alene Mines Corp. (CDE-NYSE) and Midway Gold's (MDW - TSX.V) Spring Valley Project in Joint Venture with Americ
--->an Barrick (TSX & NYSE, ABX). Spatially-related rhombic areas of sulphide-rich breccia in a gangue of calcite, ankeri
--->te, and ferroan dolomite suggest the presence of structurally controlled breccias pipes, potentially similar to those
--->reported in the Spring Valley Project. Elevated levels of fluorine are similar to other major mines in the area inclu
--->ding the Florida Canyon and Relief Canyon Mines.
Mineralization occurs in highly altered and bleached Jurassic age gabbro of the Humboldt Lopolith, an intrusive region
--->al event with an extent estimated at approximately 956 square miles situated within a sizeable volcano-tectonic trough
--->. Regionally, the Humboldt Lopolith is intrusive into Triassic age sediments of the Star Peak Group, Auld Lang Syne /
---> Grass Valley, and related formations.
Primary antimony minerals are stibnite and owyheeite or argentiferous jamesonite. Structures up to 12 feet in true wi
--->dth consisting of crushed quartz with gossanous iron oxides have returned assays to 16.6 ounces per ton silver (opt Ag
--->), 1.1% stibnite Sb, and 5.6 % lead Pb. Samples up to 0.023 ounces per ton gold (opt Au) associated with a separate m
--->ineralizing event dominated by structurally-controlled silica flooding, elevated arsenic, selenium, and tellurium are
--->present.
The larger quartz breccia veins have associated sulphide-poor barite-calcite zones ranging up to 4 feet thick as a han
--->ging wall member.
Potential exists to identify a substantial volume of near-surface oxide silver mineralization with the potential to de
--->velop high-grade bonanza grade silver mineralization at redox boundaries near paleo water tables where secondary enric
--->hment of silver is likely to occur in and near the mineralized structures. Below the redox boundary, there is potenti
--->al to discover higher grade quartz - carbonate-stibnite-silver veins in a supergene enrichment setting.
All of the historical work and conclusions described above were carried out by arm's length third parties. Kermode has
---> no information about the mining or assay methods used or whether the work was carried out under the supervision of a
--->Qualified Person as that term is defined in NI43-101. These historical records should not be relied upon without furth
--->er work being carried out at and around the Project under the supervision of a Qualified Person.
DESCRIPTION OF ALPHA PATENT:
The Alpha Patented Mining Claim USMS 38 containing 4.54 acres as surveyed by A. Craven, February and March 1881 in the
---> Echo Mining District, Township 30 North, Range 33 East, Sections 25, 26, and 35 MDBM, Pershing County, Nevada.
Production (1872-1881) Tons Dollars Dollars/Ton ($1/oz Ag)
Rye Patch DISTRICT 13,605 $644,626 $47
Rye Patch MINE 24,434 $634,388 $26
Couch, B.F., and Carpenter, J.A., 1943, Nevada's a mineral and metal production (1859-1940, inclusive): Nevada Bureau
--->of Mines and Geology Bulletin 38 (originally published as the University of Nevada Bulletin, v. 37, no. 4).
The Alpha patent covers the historic Rye Patch Mines and the entire known extent of the Alpha vein. USGS records show
---> the Rye Patch Mine had 24,434 tons for $634,388 mine production from 1872-1881, while the entire District supposedly
--->had less production over the same timelines. It is unclear why the USGS figures reported for the mine are larger than
--->for the entire district.
Discovered in 1864, the Ryepatch Mine is the principal mine in Rye Patch District. During the period 1871 through 194
--->0, Couch and Carpenter (1943) document more than $1.3 million of production from the district, mostly in silver and go
--->ld, which at then prevailing prices of $0.763 per ounce of silver would equate to more than 1.76 million ounces. The
--->Rye Patch mine itself produced $634,388 in silver and gold from 1871 through 1881 (Couch and Carpenter, p. 129), or 49
--->4,807 silver equivalent ounces at then prevailing metal prices of $1.28 per troy ounce of silver.
Examination of the extensive mine workings indicates the recorded production of only 24,434 tons of ore significantly
--->understates the actual production from the mine. Much of the production from the Rye Patch mine was hauled by wagon t
--->o a large milling facility at Oreana, Nevada, and the nearby Unionville district. Extensive mine workings at the Rye P
--->atch Mine explore the southern-most end of the zone. Besides this, limited surface geochemistry has been conducted, a
--->nd the property has never been drilled.
Mineralization is hosted in portions of the Permian age Koipato Group and the Triassic age Prida and Natchez Pass form
--->ations. Mineralization is focused in and along the sub-vertical Alpha vein. The Alpha vein periodically intersects a
---> series of low-angle imbricate structures where mineralization forms large flat-lying bodies.
Alteration and mineralization consist of pervasive silica flooding and quartz filling of hydrothermal breccias. Prima
--->ry minerals are pyrite, sphalerite, galena, chalcopyrite, stibnite, molybdenite, scheelite, and argentite.
Mineralization may extend up to a mile north of the Rye Patch Mine, but there are no records of historically productiv
--->e mines in that area. Mineralization appears to be terminated by a fault in Rye Patch Canyon to the south.
Mineralization appears to have a loose spatial relationship with a series of diabase sills and dikes evident in much t
--->he same manner as at the nearby Florida Canyon and Standard Mines, and mineralization is spatially associated with thi
--->s series of dikes and sills.
Extensive mine workings at the Rye Patch Mine explore the southern-most end of the zone. Other than this, limited sur
--->face geochemistry has been conducted, and the property has never been drilled. Situated in the Rye Patch (Echo) Mining
---> District, the property is located along US Interstate 80 roughly 30 miles north of Lovelock, Nevada, along US Interst
--->ate 80, approximately two and one half and five miles south of the Standard and Florida Canyon Mines, respectively.
All of the historical work and conclusions described above were carried out by arm's length third parties. Kermode has
---> no information about the mining or assay methods used or whether the work was carried out under the supervision of a
--->Qualified Person as that term is defined in NI43-101. These historical records should not be relied upon without furth
--->er work being carried out at and around the Project under the supervision of a Qualified Person.
PHOTOGRAPHS FROM WS & ALPHA:
Pictures from the site show essential features. For example, the size of the voids in the underground mines at Alpha a
--->ppears to be over ten feet tall in some places. Also, there is an exposure of high-grade silver veins at the surface o
--->f the WS.
Pictures 1 & 2: Underground views at the Alpha patent as photographed by Robert Carrington in 2009.
Picture 3 & 4: Outcropping silver vein at the WS as photographed by Robert Carrington on November 4th, 2021.
Find a map of the project online: http://tiny.cc/KermodeGoldRange
QA - QC
All samples reported in this release are channel samples taken by a Registered Professional Geologist with nominal sec
--->tional channel dimensions of 3 cm deep by 5 to 6 cm wide over the entire sampled length. All samples are taken as nea
--->r to normal to the apparent structures as field conditions permit.
All assays were performed at Paragon Laboratories in Sparks, Nevada. Gold (Au) was determined by fire assay and atomi
--->c absorption finish with samples containing more than 5 grams gold per metric tonne (g/T Au) re-run by fire assay with
---> a gravimetric finish. Silver (Ag) was determined by Aqua Regia digestion with atomic absorption finish. All samples
---> assaying over 100 g/T Ag were assayed with Fire Assay and gravimetric finish.
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Robert G. Carrington, P. Geo, a Q
--->ualified Person responsible for the scientific and technical information contained herein under National Instrument 43
--->-101 standards.
About Kermode
Kermode is a junior mining company hunting for exploration opportunities around the world.
On Behalf of the Board of Directors,
KERMODE RESOURCES LTD
"Peter Bell"
President/CEO
For further information please contact:
Tel: +1 (250) 588-6939
Email: peterbellmining@gmail.com
Neither the TSX Venture Exchange nor its Regulation Services Provider accept responsibility for the adequacy or accura
--->cy of this release.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements" within the meaning of applicable Ca
--->nadian and the United States securities legislation (collectively herein referred to as "forward-looking information")
--->. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Kerm
--->ode actual results, performance or achievements, or developments in the industry to differ materially from the anticip
--->ated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking sta
--->tements are statements that are not historical facts and are generally, but not always, identified by the words "expec
--->ts," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or t
--->hat events or conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document include statements but are not limited to results, analyses, and interpret
--->ations of exploration and drilling programs; our grassroots exploration program, our mining (including mining methods)
--->, expansion, exploration, and development activities, geological and mineralization interpretations, and the plans, re
--->sults, costs, and the timing thereof. Although Kermode believes the forward-looking information contained in this news
---> release is reasonable based on information available on the date hereof, by their nature, forward-looking statements
--->involve assumptions, known and unknown risks, uncertainties, and other factors which may cause our actual results, per
--->formance, or achievements, or other future events, to be materially different from any future results, performance or
--->achievements expressed or implied by such forward-looking statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertaintie
--->s associated with general economic conditions the effect of a pandemic and particularly the COVID-19 outbreak as a glo
--->bal pandemic on the Company's business, financial condition and results of operations and the impact of the COVID-19 o
--->utbreak on our workforce, suppliers and other essential resources and what effect those impacts, if they occur, would
--->have on our business, financial condition and results of operations; assumptions regarding expected capital costs, ope
--->rating costs and expenditures, production schedules, economic returns and other projections; ; adverse industry events
--->; future legislative and regulatory developments in the mining sector; the Company's ability to access sufficient capi
--->tal from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining indus
--->try and markets in Canada and generally; the ability of Kermode to implement its business strategies; competition; and
---> other assumptions, risks and uncertainties.
This list is not exhaustive of the factors that may affect our forward-looking information. Although we have attempted
---> to identify important factors that could cause actual results, actions, events, conditions, performance, or achieveme
--->nts to differ materially from those contained in forward-looking information, there may be other factors that cause re
--->sults, activities, events, conditions, performance, or achievements to differ from those anticipated, estimated or int
--->ended.
The forward-looking information contained in this news release represents the expectations of the company as of the da
--->te of this news release and, accordingly, is subject to change after such date. Readers should not place undue importa
--->nce on forward-looking information and should not rely upon this information as of any other date. While the Company m
--->ay elect to, it does not undertake to update this information at any particular time except as required in accordance
--->with applicable laws.
PDF Document
File: Attachment 2021-12-03-KLM-Rye Patch LOI News.pdf
Kermode signs LOI for Rye Patch Silver Mine in Nevada with Gold Range
Victoria, British Columbia - (December 3, 2021) - Kermode Resources Ltd.
(TSXV: KLM) ("KLM" or "Company") has entered into a non-binding letter of
intent to lease the Rye Patch Silver Mine ("Project") from GOLD RANGE
COMPANY LLC ("GRC").
Find a map of the project online: http://tiny.cc/KermodeGoldRange
The Project comprises two land positions that are approximately 45 kilometres
apart: a single patented claim called "Alpha" which is less than 5 acres of private
land with Apex Mining Rights covering the Rye Patch Mine operated in the 1870s;
and ten (10) claims in a package called the WS, which covers the Green Monster
Silver Mine active intermittently from 1936-1967. Both the WS and the Alpha
have the potential for high-grade silver discoveries.
The LOI provides for a due diligence period extending to March 1st, 2022. During
this period, Company can elect to enter into a definitive agreement (the "Definitive
Agreement") which will formalize the Transaction. Initial due diligence is
underway now by Carrington Consulting LLC, which is owned by Robert
Carrington, who also has an interest in GRC. In addition, work is ongoing to build
a digital model of the mine using a handheld LiDAR scanner to estimate historical
tonnage, combined with selective rock sampling to estimate historical grades and
form a conceptual estimate for the Rye Patch Mine.
At any time in the due diligence period, Kermode may decide to exercise
("Exercise") the option and lease the Project by issuing a number of shares in
Kermode equal to 5% of the issued and outstanding shares to GRC with an Anti-
Dilution Clause, a Future Sales Interest, and other conditions. As an expedited
transaction, the Company is at arms' length from GRC and plans to spend less than
half the total exploration budget at Rye Patch next year.
Peter Bell said, "Kermode plans to spend less than half our budget over the next
year on this project, but this LOI is very important. It's my first time to strike an
option on a new property, and I think the terms are uniquely bullish. The stock-
heavy property payment and anti-dilution clause aligns incentives for the explorer
and property vendor. The future sale interest is a bullish feature, too. I see this as a
unique deal template that starts a new relationship with GOLD RANGE."
DUE DILIGENCE PERIOD:
GRC grants KLM a sole and exclusive due diligence period during which GRC
and KLM agree to exercise their best efforts to negotiate an agreement for the
GRC interest in the Project. During this period, KLM has the exclusive right to
conduct such due diligence as it may deem necessary or advisable, including but
not limited to researching the title of the Project and GRC's leasehold interest and
mapping and sampling the surface and underground workings.
KLM recognizes and agrees that it will not conduct any activities resulting in
significant surface or underground disturbance including drilling, trenching, road
building, drilling, or blasting during the due diligence period and until it has paid
to GRC all of the payments, whether cash or stock as may be the case as
contemplated herein-below.
TERMS OF THE LEASE:
If the Company Exercises the option to lease the Project, then the following
applies:
- Payment terms to acquire the full 100% leasehold interest, subject to all terms
and conditions are as follows:
-on signing this LOI US$ 4,225
-on signing Option Lease agreement 5% of KLM
(Anti-dilution Clause)
-end of 1st year payment US$ 3,650
-end of 2nd year payment US$ 3,650
-end of 3rd year payment US$ 6,650
-end of 4th year payment US$ 6,650
-end of 5th year payment through 10th year US$ 50,000
-end of 10th year and thereafter US$100,000
-20 year lease, renewable for 20 year increments. Lease payments under the
royalty for the previous five years shall be credited cumulatively against
royalty payment obligations. All Lease payments after the 5th year to be
indexed and increased by the compounded US CPI inflation rate each year.
- Half the shares issued on signing the Definitive Agreement will be subject to an
Escrow period of one (1) year.
- GRC retains and KLM grants an area of influence extending 1 mile from the
exterior boundaries of the Project, in which all claims or properties as may be
acquired by KLM or an affiliate or related party will be subject to the contemplated
agreement between KLM and GRC and will become a part of the Property.
- GRC retains and KLM grants a "Future Sales Interest" (FSI) such that if KLM
sells or assigns its interest in the property or an affiliate of KLM that holds such
leasehold interest GRC will receive five percent (5%) of any such payments or
compensation to KLM arising out of such merger, agreement, sale, transaction or
assignment of the contemplated lease or affiliate of KLM that controls such lease.
-GRC retains and KLM grants a five percent (5%) Net Smelter Returns (NSR)
production royalty, which shall be subject to a buy-down by KLM to 3% NSR for
$3M, and subject to an additional buy-down by KLM to 1.5% NSR for an
additional $3M.
ANTI-DILUTION CLAUSE:
- If the Company exercises the option to lease the Project, then KLM will issue to
GRC that number of common shares of KLM that will increase GRC's equity
ownership in KLM to 5%. Thereafter, KLM will have the continuing obligation to
issue additional shares of KLM to GRC to maintain its 5% interest in KLM, at no
additional cost to GRC, until KLM has raised a cumulative US$2,000,000 in
equity. Half the shares issued on signing will be subject to a one (1) year escrow.
- GRC will have the right to participate pro rata in all future financings for three
(3) years following the exercise at its own cost to maintain its 5% interest in KLM.
When GRC sells shares in KLM issued under the terms of the lease, the amount of
the anti-dilution clause decreases on a pro rata basis.
WORK COMMITMENTS:
- KLM commits to conduct at least US$50,000 on exploration on the Property
during years 2 through 5 and US$100,000 per year thereafter.
- KLM agrees that it will maintain the GRC lease for the Project in good and
marketable condition, will protect and defend the title to the Project keeping the
title free and clear of any and all liens and encumbrances, and that it will reimburse
GRC or the Lessor for payment of annual property taxes and other reasonable costs
related thereto.
DESCRIPTION OF WS CLAIMS:
The WS Property scomprises those unpatented mining claims identified as WS 101
through and including 110 in the Wild Horse Mining District, Townhip 25 North,
Range 32 East, Sections 14 and 15 MDBM, Pershing County, Nevada.
Highlights of results of surface sampling done by GRC at WS are as follows:
Grade Sample Sample Description
(opt ID
Ag) Select Grab sample in decline in Green Antimony Mine, simple antimony vein,
20.83 R 181-1 2 - 10" wide in core of quartz breccia to 3 to 4 feet wide strikes N70W -60E
toward another sub-vertical vein. It appears to be near the intersection with a
16.63 R 179 large low angle structure, abundant stibnite, and common remnant pyrite,
7.29 R 179-2 sample for comparison with the geochemistry of larger veins to the north.
6.97 W161
12-foot channel sample perpendicular to structure just outside of portal of
4.08 R 179-1 decline. Brecciated quartz with abundant FeOx, MnOx, SbOx?, AsOx?.
Intense shearing and argillization in hanging wall and in internal shear, which
appears to parallel zone.
4-foot channel sample, NW corner at the bottom of winze/raise between
decline and upper tunnel.
32-foot long channel sample outside portal of decline
6-foot channel sample in an old upper tunnel on the structure. Channel sample
perpendicular to strike and dip of structure at the top of raise from decline.
Brecciated quartz with abundant, locally greater than 50% of the vein by
volume gossanous FeOx after sulphides. The green hue indicates abundant As.
Channel sample perpendicular to strike and dip of structure at the top of raise
from decline. Brecciated quartz with abundant, locally greater than 50% of the
vein volume gossanous FeOx after sulphides. The green hue indicates
abundant As, the same structure as in 179-2.
The WS project is prospective for high-grade silver, gold, and antimony. It is a
grassroots exploration project situated in the arid Basin and Range Province of
west-central Nevada on lands administered by the Bureau of Land Management.
Mineralization in the area was first discovered about 1906 and limited, though
unspecified production occurred sporadically from 1918 through about 1967. The
principal mine on the property, the Green Monster Silver Mine, was first located
during World War I and has produced an uncertain amount of silver antimony ore
and produced intermittently from 1936 through 1967.
Silver-antimony mineralization occurs within a 2 mile long, north-trending area of
recessional weathering, as is common of many major mineralized systems in the
Basin and Range. High-grade, structurally-controlled silver mineralization occurs
in structures ranging from a few inches to more than 12 feet in width hosted in
intensely altered and fractured gabbro. In general, the WS system occurs within an
extensive, north-south trending corridor of structurally controlled mineralization,
which may trend through the nearby Couer Rochester Open Pit Silver Mine,
owned and operated by Coeur d'Alene Mines Corp. (CDE-NYSE) and Midway
Gold's (MDW TSX.V) Spring Valley Project in Joint Venture with American
Barrick (TSX & NYSE, ABX). Spatially-related rhombic areas of sulphide-rich
breccia in a gangue of calcite, ankerite, and ferroan dolomite suggest the presence
of structurally controlled breccias pipes, potentially similar to those reported in the
Spring Valley Project. Elevated levels of fluorine are similar to other major mines
in the area including the Florida Canyon and Relief Canyon Mines.
Mineralization occurs in highly altered and bleached Jurassic age gabbro of the
Humboldt Lopolith, an intrusive regional event with an extent estimated at
approximately 956 square miles situated within a sizeable volcano-tectonic trough.
Regionally, the Humboldt Lopolith is intrusive into Triassic age sediments of the
Star Peak Group, Auld Lang Syne / Grass Valley, and related formations.
Primary antimony minerals are stibnite and owyheeite or argentiferous jamesonite.
Structures up to 12 feet in true width consisting of crushed quartz with gossanous
iron oxides have returned assays to 16.6 ounces per ton silver (opt Ag), 1.1%
stibnite Sb, and 5.6 % lead Pb. Samples up to 0.023 ounces per ton gold (opt Au)
associated with a separate mineralizing event dominated by structurally-controlled
silica flooding, elevated arsenic, selenium, and tellurium are present.
The larger quartz breccia veins have associated sulphide-poor barite-calcite zones
ranging up to 4 feet thick as a hanging wall member.
Potential exists to identify a substantial volume of near-surface oxide silver
mineralization with the potential to develop high-grade bonanza grade silver
mineralization at redox boundaries near paleo water tables where secondary
enrichment of silver is likely to occur in and near the mineralized structures.
Below the redox boundary, there is potential to discover higher grade quartz
carbonate-stibnite-silver veins in a supergene enrichment setting.
All of the historical work and conclusions described above were carried out by
arm's length third parties. Kermode has no information about the mining or assay
methods used or whether the work was carried out under the supervision of a
Qualified Person as that term is defined in NI43-101. These historical records
should not be relied upon without further work being carried out at and around the
Project under the supervision of a Qualified Person.
DESCRIPTION OF ALPHA PATENT:
The Alpha Patented Mining Claim USMS 38 containing 4.54 acres as surveyed by
A. Craven, February and March 1881 in the Echo Mining District, Township 30
North, Range 33 East, Sections 25, 26, and 35 MDBM, Pershing County, Nevada.
Production (1872-1881) Tons Dollars Dollars/Ton ($1/oz Ag)
Rye Patch DISTRICT 13,605 $644,626 $47
Rye Patch MINE 24,434 $634,388 $26
Couch, B.F., and Carpenter, J.A., 1943, Nevada's a mineral and metal production
(1859 1940, inclusive): Nevada Bureau of Mines and Geology Bulletin 38
(originally published as the University of Nevada Bulletin, v. 37, no. 4).
The Alpha patent covers the historic Rye Patch Mines and the entire known extent
of the Alpha vein. USGS records show the Rye Patch Mine had 24,434 tons for
$634,388 mine production from 1872-1881, while the entire District supposedly
had less production over the same timelines. It is unclear why the USGS figures
reported for the mine are larger than for the entire district.
Discovered in 1864, the Ryepatch Mine is the principal mine in Rye Patch District.
During the period 1871 through 1940, Couch and Carpenter (1943) document more
than $1.3 million of production from the district, mostly in silver and gold, which
at then prevailing prices of $0.763 per ounce of silver would equate to more than
1.76 million ounces. The Rye Patch mine itself produced $634,388 in silver and
gold from 1871 through 1881 (Couch and Carpenter, p. 129), or 494,807 silver
equivalent ounces at then prevailing metal prices of $1.28 per troy ounce of silver.
Examination of the extensive mine workings indicates the recorded production of
only 24,434 tons of ore significantly understates the actual production from the
mine. Much of the production from the Rye Patch mine was hauled by wagon to a
large milling facility at Oreana, Nevada, and the nearby Unionville district.
Extensive mine workings at the Rye Patch Mine explore the southern-most end of
the zone. Besides this, limited surface geochemistry has been conducted, and the
property has never been drilled.
Mineralization is hosted in portions of the Permian age Koipato Group and the
Triassic age Prida and Natchez Pass formations. Mineralization is focused in and
along the sub-vertical Alpha vein. The Alpha vein periodically intersects a series
of low-angle imbricate structures where mineralization forms large flat-lying
bodies.
Alteration and mineralization consist of pervasive silica flooding and quartz filling
of hydrothermal breccias. Primary minerals are pyrite, sphalerite, galena,
chalcopyrite, stibnite, molybdenite, scheelite, and argentite.
Mineralization may extend up to a mile north of the Rye Patch Mine, but there are
no records of historically productive mines in that area. Mineralization appears to
be terminated by a fault in Rye Patch Canyon to the south.
Mineralization appears to have a loose spatial relationship with a series of diabase
sills and dikes evident in much the same manner as at the nearby Florida Canyon
and Standard Mines, and mineralization is spatially associated with this series of
dikes and sills.
Extensive mine workings at the Rye Patch Mine explore the southern-most end of
the zone. Other than this, limited surface geochemistry has been conducted, and
the property has never been drilled. Situated in the Rye Patch (Echo) Mining
District, the property is located along US Interstate 80 roughly 30 miles north of
Lovelock, Nevada, along US Interstate 80, approximately two and one half and
five miles south of the Standard and Florida Canyon Mines, respectively.
All of the historical work and conclusions described above were carried out by
arm's length third parties. Kermode has no information about the mining or assay
methods used or whether the work was carried out under the supervision of a
Qualified Person as that term is defined in NI43-101. These historical records
should not be relied upon without further work being carried out at and around the
Project under the supervision of a Qualified Person.
PHOTOGRAPHS FROM WS & ALPHA:
Pictures from the site show essential features. For example, the size of the voids in
the underground mines at Alpha appears to be over ten feet tall in some places.
Also, there is an exposure of high-grade silver veins at the surface of the WS.
Pictures 1 & 2: Underground views at the Alpha patent as photographed by Robert
Carrington in 2009.
Picture 3 & 4: Outcropping silver vein at the WS as photographed by Robert
Carrington on November 4th, 2021.
Find a map of the project online: http://tiny.cc/KermodeGoldRange
QA - QC
All samples reported in this release are channel samples taken by a Registered
Professional Geologist with nominal sectional channel dimensions of 3 cm deep by
5 to 6 cm wide over the entire sampled length. All samples are taken as near to
normal to the apparent structures as field conditions permit.
All assays were performed at Paragon Laboratories in Sparks, Nevada. Gold (Au)
was determined by fire assay and atomic absorption finish with samples containing
more than 5 grams gold per metric tonne (g/T Au) re-run by fire assay with a
gravimetric finish. Silver (Ag) was determined by Aqua Regia digestion with
atomic absorption finish. All samples assaying over 100 g/T Ag were assayed with
Fire Assay and gravimetric finish.
Qualified Person
The technical information in this news release has been reviewed and approved by
Mr. Robert G. Carrington, P. Geo, a Qualified Person responsible for the scientific
and technical information contained herein under National Instrument 43-101
standards.
About Kermode
Kermode is a junior mining company hunting for exploration opportunities around
the world.
On Behalf of the Board of Directors,
KERMODE RESOURCES LTD
"Peter Bell"
President/CEO
For further information please contact:
Tel: +1 (250) 588-6939
Email: peterbellmining@gmail.com
Neither the TSX Venture Exchange nor its Regulation Services Provider accept
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements"
within the meaning of applicable Canadian and the United States securities
legislation (collectively herein referred to as "forward-looking information"). Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause Kermode actual results, performance or achievements,
or developments in the industry to differ materially from the anticipated results,
performance or achievements expressed or implied by such forward-looking
statements. Forward-looking statements are statements that are not historical facts
and are generally, but not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects," "potential" and similar
expressions, or that events or conditions "will," "would," "may," "could" or
"should" occur.
Forward-looking statements in this document include statements but are not
limited to results, analyses, and interpretations of exploration and drilling
programs; our grassroots exploration program, our mining (including mining
methods), expansion, exploration, and development activities, geological and
mineralization interpretations, and the plans, results, costs, and the timing thereof.
Although Kermode believes the forward-looking information contained in this
news release is reasonable based on information available on the date hereof, by
their nature, forward-looking statements involve assumptions, known and
unknown risks, uncertainties, and other factors which may cause our actual results,
performance, or achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or implied by such
forward-looking statements.
Examples of such assumptions, risks and uncertainties include, without limitation,
assumptions, risks and uncertainties associated with general economic conditions
the effect of a pandemic and particularly the COVID-19 outbreak as a global
pandemic on the Company's business, financial condition and results of operations
and the impact of the COVID-19 outbreak on our workforce, suppliers and other
essential resources and what effect those impacts, if they occur, would have on our
business, financial condition and results of operations; assumptions regarding
expected capital costs, operating costs and expenditures, production schedules,
economic returns and other projections; ; adverse industry events; future legislative
and regulatory developments in the mining sector; the Company's ability to access
sufficient capital from internal and external sources, and/or inability to access
sufficient capital on favorable terms; mining industry and markets in Canada and
generally; the ability of Kermode to implement its business strategies; competition;
and other assumptions, risks and uncertainties.
This list is not exhaustive of the factors that may affect our forward-looking
information. Although we have attempted to identify important factors that could
cause actual results, actions, events, conditions, performance, or achievements to
differ materially from those contained in forward-looking information, there may
be other factors that cause results, activities, events, conditions, performance, or
achievements to differ from those anticipated, estimated or intended.
The forward-looking information contained in this news release represents the
expectations of the company as of the date of this news release and, accordingly, is
subject to change after such date. Readers should not place undue importance on
forward-looking information and should not rely upon this information as of any
other date. While the Company may elect to, it does not undertake to update this
information at any particular time except as required in accordance with applicable
laws.
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