Bearing Resources, a Canadian-based company exploring base and precious metals with projects conducted in the Yukon, British Columbia, and Mexico, has declared that the company has signed an option contract with Precipitate Gold, by which Precipitate can gain up to 70% interest in Bearing’s Jay East Property, situated in the Watson Lake mining district at the Yukon Territory.
In order to gain a preliminary 51% interest, it is necessary for Precipitate to make cash payments of $480,000 and then finish exploration costs amounting to $2,000,000 over a period of five years. There is a possibility for Precipitate to gain an extra 19% interest by finishing a viability study and making extra cash payments amounting $300,000.
Jay East consists of 108 claims with an area measuring 2,046 ha and it is situated immediately to the south and east of Precipitate's REEF property. This property includes a sequence of gold-arsenic and gold occurrences in soil variances previously called as "FER" that were identified and structured in the late 1990s. This appeared to be related to other accounted gold occurrences in the areas of Upper Hyland. Jay East is expected to have the structural regime and the host rock similar to the REEF property and will be analyzed for further gold mineralizing system’s extensions.