Dec 8 2020
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Palayan Resources, a publicly traded, fully reporting emerging growth company, reports that it has signed a Letter of Intent with Provenance Gold Corp. with respect to a transaction that covers some mineral claims and rights in Nevada.
The transaction is expected to include the development of the joint venture after the successful accomplishment of an exploration program to be managed and directed under the supervision of Provenance and financially supported by Palayan.
Provenance retains the rights to obtain 102 lode mineral claims, called the Silver Bow Claims, and also manages one patented mining claim, determined as the Blue Horse Claim (jointly, the “Project”), all of which are situated in Nye County in Nevada and are subject to some net smelters returns royalty. The Project includes around 2,024 acres.
The Project is a gold and silver property that includes small mines that historically produced high-grade gold and silver. The small mines were restricted to local veins inside huge, mineralized structures and extending downward to a shallow water table where mining has ceased.
The Project evidenced small-scale intermittent mining activities between the early 1900s and 1964, reportedly generating more than 100,000 ounces of silver and10,000 ounces of gold. The 102 claims encompass various important zones of mineralization.
We are excited about completing this transaction in the near future and are working feverishly to wrap up the due diligence phase as quickly as possible to make sure we comply with all legal and accounting matters related to this transaction.
James Jenkins, CEO, Palayan Resources
Already, Provenance has finished preliminary work on the Project, including geologic mapping, permitting, sampling, and logging of historical drilling. Depending on the findings of these works, Provenance has cited a preliminary drill program in an area with extremely strong surface silver and gold samples inside a 300-feet-wide, open-ended mineralized zone that expands 1,500 feet northward before it submerges under shallow gravel cover.
An uncovered breccia outcrop located around 1,500 feet to the north of where the target area submerges under gravel cover assayed 0.1 ounce per ton gold and 2 ounces of silver. Already, Provenance has obtained a Phase 1 work exploration proposal and is all set to instantly begin work in that location.
After the successful completion of the Phase 1 exploration program, it is expected that Palayan and Provenance will collectively fund and develop the Project on an ownership basis of Palayan 49.5% and Provenance 50.5%, where Provenance would act as the project operator.
This is a great opportunity to partner with Provenance on the Silver Bow project, a project that is located in the United States and is ready for immediate drilling. This opportunity presents the potential to develop a world class gold and silver property much sooner than we had projected.
James Jenkins, CEO, Palayan Resources
In accordance with the terms of the Letter, both Palayan and Provenance shall have time until December 24th, 2020, to complete due diligence and sign a final and definitive agreement.