GRAND JUNCTION, CO--(Marketwired - Apr 14, 2015) - Bullfrog Gold Corp (
Twelve contiguous patents that include the northeast half of the M-S pit were optioned to purchase by Rocky Mountain Minerals Corp. (RMMC), a wholly-owned subsidiary of the Company, from Mojave Gold Mining Company (Mojave). Mojave, a private company based in Salt Lake City, Utah, has an exclusive option to purchase the 12 patents from two owners who secured quiet title and 100% interest in early October 2014. On October 29, 2014, Mojave was paid $16,000 plus 750,000 shares of Bullfrog common stock on closing and, to earn a 100% interest, is scheduled to be paid $200,000 over nine years while performing no less than $100,000 of work per year for five years on or within 1/2 mile of the 12 patents. Mojave retained a sliding scale Net Smelter Return royalty ranging from 1% for gold prices below $1200/ounce and up to 4 % for gold prices above $3,200 per ounce. For reference, Barrick terminated a lease on these patents after they ceased operations in late 1999.
The Company's lease and option with Barrick was signed on March 23, 2015 and includes 6 patents (two of which cover the southwest half of the M-S pit); 20 unpatented claims that cover the northern one-third of the main Bullfrog deposit and 8 nearby mill site claims. The Company also has access to Barrick's substantial data base within a 1.5 mile radius of the leased lands to further advance its exploration and development plans and programs. To maintain the lease and option, the Company must spend $1.5 million dollars within five years on the Barrick properties and then pay Barrick 3.25 million shares of Bullfrog stock while providing a 2% gross royalty on production from the Barrick properties. Overriding royalties of 5% net smelter returns and 5% gross proceeds are respectively limited to three claims and two patents in the main Bullfrog pit area. Barrick has retained a back-in right to reacquire a 51% interest in the Barrick properties, subject to definition of a mineral resource on the Barrick properties meeting certain criteria, and reimbursing the Company in an amount equal to two and one half times Company expenditures on the Barrick properties.
Company management has estimated that 41,000 ounces of gold in 1.44 million tons of material averaging 0.97 gram per ton remains within a cutoff depth up to 75 meters under the existing M-S pit. This manual estimate was based on cross sections typically spaced 15 meters apart, a cutoff grade of 0.3 gram gold per ton at the top and bottom of mineral intervals, and drill data and pit surveys completed by Barrick. Notwithstanding, Barrick makes no representation concerning the accuracy or completeness of the data used by the Company. Additional drilling is required to confirm some of the Company's mineral projections and to test for extensions at greater depths and along strike beyond the existing pit limits. Half of this M-S mineralization is on two Barrick patents within the pit and half is on two of the 12 Mojave patents. The direct ratio of waste to mineral tons within a cross-sectional preliminary pit outline is 0.97:1, but this does not include waste removal for ramps and other considerations that would otherwise be included in a future pit plan based on computerized block modelling and 3-D mine planning and design programs. It is further cautioned that the Company's current and expanded properties contain no reserves or resources and that the estimates and additional potential mineralization discussed herein may never become viable, feasible or economic. These estimates were mainly prepared to assess the available M-S information and plan additional drilling.
Significant drilling is required to test projections of mineralized trends and structures that extend for considerable distances to the north and east of the M-S pit on the original lands acquired by the Company in 2011. Located east of the M-S pit is an area 700 meters by 1,300 meters in which there is only one shallow hole from which there is no data available. Only a portion of this area may be prospective, but it certainly warrants additional study and exploration drilling.
There is only one drill hole located about 150 meters NE of the M-S pit limit and another hole 1000 meters NE of the pit along strike of a major geologic structure. In this regard, the Company's lands extend nearly 5,000 meters NNE of the pit and there has been very little drilling in this area, even though several structures have been mapped by Barrick and others.
Barrick drilled twelve deep holes in the M-S area ranging from 318 meters to 549 meters deep. Notable mineral intercepts from four holes below the central part of the pit are summarized below:
|Hole||Intercept Data, Meters||Gold|
|* 525 feet averaging 0.028 Au opt,|
|includes 70 feet at 0.061 Au opt|
These results demonstrate that substantial amounts of gold occur in an exceptionally large epithermal system that has good potential for expansion and possibly higher grades at depth. Note that four of these intercepts are less than 75 meters below the existing pit. Two holes located 40 meters and 90 meters east of the 160 meter interval in hole 717 contained no significant mineralization at this depth, whereas the 29 meters of mineral in hole 733 is 60 meters west and the mineral zone is open to the north, south and west.
For reference, Barrick terminated all mining and milling operations in the autumn of 1999 when their cash production costs exceeded gold prices that averaged less than $300 per ounce for the year and reached a low of $258/oz in August 1999. The economic margins for heap leaching lower grades at current gold prices near $1200/oz are deemed much better than in 1999, and the Company is well positioned to explore such opportunities. Furthermore, Barrick never controlled or had access to a patented claim on the immediate east and north limits of the M-S pit, but this patent is owned by the Company.
In summary, the Company looks forward to adding shareholder value through exploring its expanded land position while building mutually beneficial business relationships with Barrick, Mojave and other area stakeholders.
Bullfrog Project History
In 1904 the Original Bullfrog and M-S mines were discovered by local prospectors. The M-S underground mine reportedly produced 70,000 ounces of gold averaging 0.47 opt gold prior to its closure in 1911. In 1982 St. Joe American, Inc. initiated drilling in the Montgomery-Shoshone mine area and applied the detachment fault model that led to the discovery of 2.9 million ounces of gold, including silver credits, in the Bullfrog Mining District. A series of corporate takeovers went from St. Joe, to Bond Gold, to Lac Minerals and eventually to Barrick. Production started in 1989 and recovered approximately 2.3 million ounces of gold from a conventional, 9,000 ton/day cyanidation mill mainly fed from open pits and supplemented from underground mining.
In 2011 the Company's other wholly-owned subsidiary, Standard Gold Corp., purchased 100% interest and title to 1,650 acres of mining claims and patents subject to a 3% net smelter royalty. A royalty up to 3% also applies to acquired lands provided the overriding royalty on such lands is less than 3%.
About Bullfrog Gold Corp.
Bullfrog Gold Corp. is a Delaware corporation that started trading on the over-the-counter bulletin board market on October 17, 2011 under the symbol BFGC. More information may be obtained from www.BullfrogGold.com, by emailing info@BullfrogGold.com or calling (970) 628 - 1670.
Cautionary Note Regarding Forward Looking Statements
This press release may contain certain "Forward-Looking Statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein including those with respect to the objectives, plans and strategies of the Company and those preceded by or that include the words "believes," "expects," "given," "targets," "intends," "anticipates," "plans," "projects," "forecasts" or similar expressions, are forward-looking statements that involve various risks and uncertainties. The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures and may not result in the discovery of sufficient mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Additional information regarding important factors that could cause actual results to differ materially from the Company's expectations is disclosed in the Company's documents filed from time to time with the United States Securities & Exchange Commission.