Kettle Valley Gold
The Kettle Valley Gold project was staked by the Vendor, Wayne Murton, P. Eng., to cover a newly identified occurrence of epithermal alteration and mineralization in the Boundary region of southern British Columbia. Prospecting and sampling of subcrop and float in a new clear-cut area yielded highly anomalous gold and silver values. Multiple samples exceed 0.25 g/t gold, with values up to 2.38 g/t gold and 43.49 g/t silver. This new epithermal discovery is adjacent to a major structural feature where the well mineralized NW trending Crouse Creek fault displaces the north-south trending Rock Creek graben. Significant epithermal mineralization occurs in a similar setting in the near-by Republic graben in Washington State.
The property is located 33 km north of the community of Rock Creek, B.C. Good all-weather logging roads provide excellent access to all areas of the property from the paved Christian Valley road. The northern half of the property has been clear cut logged in the last 3-4 years.
Elevation on the property varies from approximately 700m to 1000m. Average annual precipitation consists of 24 cm of rain and 1 m of snow with temperatures averaging -10° C in the winter and +25° C in the summer. The property is snow free from mid April to mid October. The property can be easily worked all year.
The discovery of quartz breccia commingled with carbonate breccia and flooding along with the presence of bladed calcite in the Eocene Marron Formation represents a new discovery of epithermal gold / silver mineralization. Widespread adularia chalcedony, amorphous silica gels, green sericite alteration, bladed calcite, quartz pseudomorphs after bladed calcite along with clay alteration zones are classic indicators of a low sulfidation epithermal system. Extensive faulting with interpreted vertical plus lateral components has apparently disrupted the mineralized zone. The present known vertical range of alteration and mineralization of the system extends from an elevation of 960 m at the top of the north/south central ridge to 700. The observed strike length of the mineralized / highly altered zone is approximately 800m long with a width of approximately 400m at the south end. The location for this strong / widespread epithermal system appears to be a result of the disruptive junction of the NW trending Crouse Creek fault with the western edge of the Rock Creek graben.
Goldcliff has entered into an Option to Purchase agreement to acquire a 100% interest by paying $450,000 over five years and spending $1,000,000 over three years. The vendor will retain a Net Smelter Return Royalty of 2.5%. Goldcliff may reduce that royalty to 1.5% at any time by paying the vendor $1,000,000. The vendor will also be entitled to an additional payment of $1,000,000 on the publishing of a measured and indicated resource of 1,000,000 ounces of gold equivalent. On a production decision, the vendor will also receive additional milestone payments. On a production decision based on a resource of one million ounces of gold equivalent or less the vendor will receive a payment of $2,000,000 and if the resource exceeds one million ounces the payment will be $5,000,000.
