Under the Agreement, Silver Stream can initially earn a 55% undivided interest, and ultimately an 80% undivided interest, in the Solomon Pillars Gold Property ("Property") owned by Sage and located in Beardmore, Ontario. The Property is comprised of 418.1 hectares with 22 leased and 4 staked claims located in the Townships of Walters and Leduc, Ontario.
The Property has been the focus of significant exploration and development work over the years. A 3-compartment shaft that was installed in 1936 to a depth of 91.4 meters with two levels developed at 45 meters and 84 meters depth. A mine dump was established next to the shaft but no production was reported. Three mineralized zones were reported from drilling by Canico between 1969 and 1988 which resulted in a company calculated resource potential in 1986 (non NI 43-101 compliant) primarily from the Main and West zones.
The Property is located within the Southern Metasedimentary Sub-belt of the Beardmore-Geraldton Greenstone Belt which has hosted 11 past producing gold mines over the years and over 94% of the approximately 4.1 million ounces of gold produced from this greenstone belt. The past-producing Leitch Mine near Beardmore was one of the richest gold producers in Canada having produced 861,982 ounces of gold at an average grade of 0.92 ounces per ton. This belt currently hosts the Premier Gold Hardrock Deposit near Geraldton with resource estimates at more than 6 million ounces of gold in all categories (February 1, 2013, Premier Gold NI 43-101 Report-filed on SEDAR).
Silver Stream has been granted the option to earn a 55% interest in the Solomon Pillars Property by fulfilling the following:
An initial payment of CDN$25,000 payable to Sage upon signing the Agreement.
CDN$50,000 of Exploration Expenditures will be incurred on the Property and a payment of CDN$30,000 (cash or shares at Silver Stream’s option) to Sage, on or before the first anniversary of the effective date of the Agreement.
An additional CDN$100,000 of Exploration Expenditures will be incurred on the Property and a payment of CDN$40,000 (cash or shares at Silver Stream’s option) payable to Sage, on or before the second anniversary of the effective date of the Agreement.
An additional CDN$150,000 of Exploration Expenditures will be incurred on the Property, on or before the third anniversary of the effective date of the Agreement.
Silver Stream has the exclusive right to a one-time option to increase the undivided interest from 55% to 80% by making a payment of CDN$250,000 to Sage within 90 days of completing the initial earn-in and exercising of the option.
Once the initial interest is earned by Silver Stream in the Property, each party will fund continuing exploration and development on a pro-rata basis according to their equity in the project. Silver Stream will be the project operator.
The Property is divided into two sets of claims each with a different royalty structure. The "Solomon Pillars" on the eastern section of the Property has net smelter royalty ("NSR") of 1%. The "King Solomon Pillars" on the western section of the property has a 3% NSR on precious metals with a 1% buyback provision for CDN$1,500,000.
The Property is subject to a CDN$25,000 annual advance royalty payment preceding the commencement of commercial production.
Concurrent with signing the Agreement, Silver Stream has hired James Garber, P.Geo., as Vice President of Exploration for the Company. Mr. Garber has significant experience in the Beardmore-Geraldton Greenstone Belt. Mr. Garber graduated from the University of Windsor, Windsor, ON, in 1973 with a B.Sc. (Honours Geology) and has been a practicing geologist for over 35 years with both major and junior exploration companies including Phillips Petroleum Company – Strategic Minerals Division, Noranda Exploration Company, Hemlo Gold and Battle Mountain Gold.
Most recently Mr. Garber worked as Director / Exploration Manager, Canada for Landore Resources Inc. / Landore Resources Canada Inc. from 2004 to 2009 and Manager of Exploration for Metalcorp Limited from 2010 to 2012. He was personally involved with the discovery and delineation of gold and nickel deposits in northern Ontario, including the Glimmer Gold Deposit (now the Black Fox mine of Brigus Gold), the Pike River gold deposit (now Brigus Gold Grey Fox deposit), the Junior Lake project VW nickel deposit (NI 43-101 compliant resource of 3.7 m tonnes at 0.49% NiEq indicated and 0.72 m tonnes at 0.49% NiEq inferred for a contained 21,760 tonnes NiEq (www.landore.com)) and the initial evaluation of the Lamaune iron deposit. He also served as Director and Qualified Person of Northcore Resources Inc. from April 2013 to October 2013 and from January 2009 to December 2010, he was an Independent Consultant engaged primarily in First Nation Engagement for Mining Companies.
