SAGD EOD News out penny runner .0029 close nHOD South American Gold Signs Agreement to Lease With Option to Purchase the Baltimore Silver Mine
RICHMOND, IN, Aug 09, 2012 (MARKETWIRE via COMTEX) -- South American Gold (OTCQB: SAGD) is pleased to announce it has signed a binding memorandum of understanding to lease with option to purchase the Baltimore Silver mine, a former producing silver mine in western Montana.
The Baltimore Silver Mine is a former producing silver mine in an historic mining district located on private land in Jefferson County, Montana, at an elevation of approximately five thousand eight hundred feet above sea level.
The history of the Baltimore Mine dates back to the nineteenth century, with historical information indicating that recorded production was 18,148 tons of ore yielding 1,734 ounces of gold, 275,489 ounces of silver, however extensive modern exploration drilling has not been conducted on the property. The property covers roughly sixty acres, has six tunnels and a reported 400-foot shaft. By 1911 there were two thousand feet of underground workings and two tunnels with a work force of sixty men; in 1935 four tunnels and three thousand feet of underground drifts and crosscuts, with an additional two tunnels present by 1960. In 1966 and in 1989 sampling was conducted on the property with limited drilling conducted. This historical information has not been independently verified by the company, and the company is compiling the database of records on the property including assay reports from 1966 and 1989.
We are reviewing historical data to prepare an exploration plan and preliminary assessment that will include reviewing the infrastructure to determine cost for rehabilitation, access to underground workings, and best target areas for drilling to determine future production potential. Key variables include determining the grade and extent of mineralization on the property, and development capital requirements.
The terms of the memorandum of understanding ("MOU") with a private corporation to lease with option to purchase the property include, an annual lease fee of ten to twenty thousand dollars, all production subject to a three percent net smelter return, a ten-year lease term with an extension of fifteen years upon payment of an additional one hundred thousand dollars, a purchase price of five hundred thousand dollars that can be exercised at any time during the lease, and payment of ten million shares of restricted common stock for entering into the agreement, with a definitive agreement to be signed within ninety days and the company has twenty days in which to issue restricted shares as initial consideration for the project. Further details on the agreement may be found in our 8K filing.
About South American Gold:
South American Gold Corp (OTCQB: SAGD) is an exploration mining company focused on the discovery, acquisition, exploration and development of gold and silver deposits in North and South America. Our strategy is to acquire a pipeline of mining prospects in historic mining districts to explore, develop or joint venture, with an objective of establishing commercial production. The company in the last ten months has acquired mining prospects in Arizona, Nevada, Montana, and continues to consider projects in Colombia, Mexico and other regions.
