Bravada Signs Letter of Intent with Oceana for its Highland Gold/Silver Project in Nevada
November 15, 2018
Vancouver, British Columbia - (Newsfile Corp. - November 15, 2018) - Bravada Gold Corporation (TSXV: BVA) (OTCQB: BGAVF) (FSE: BRTN) ("Bravada") announces that it has executed a Letter of Intent ("LOI") with OceanaGold Corp ("Oceana") whereby Oceana may earn up to a 75 percent interest in Bravada's low-sulfidation Highland gold/silver project, located within the Walker Lane Gold trend in western Nevada. The LOI sets terms for the earn in and includes an Exclusivity period until December 15, 2018 during which time Oceana will conduct additional due diligence for the Highland property and will negotiate a Definitive Agreement with Bravada.
Oceana may earn a 51 percent interest by making certain cash or share payments and incurring aggregate exploration expenditures of US$4 million over five years. Oceana may increase its interest to 75 percent within four years of earning its 51% interest by incurring an additional US$6 million in exploration expenditures. Payments include advanced minimum royalty ("AMR") payments to underlying property vendors, claim fees, an initial cash payment of US$50,000 to Bravada and an additional US$200,000 payment to Bravada upon Oceana earning a 51% interest in the property. Payment to Bravada at 51% earn-in can be in cash or shares at Oceana's option.
A technical committee composed of Oceana and Bravada personnel will recommend work programs with Oceana having the sole decision on program work and expenditures. The Highland property is subject to a 3% NSR royalty in favour of the underlying vendors of the property subject to a reduction of the royalty to 2% upon payment of US$1 million. All AMR payments will be deducted from production royalties. Approximately US$500,000 in AMR payments have been made to date.
President Joe Kizis commented: "There is great potential at Highland to discover new, high-grade gold/silver deposits. Low- sulfidation deposits worldwide are among the highest-margin gold/silver deposits, and usually occur as clusters of similar- grade deposits of various sizes. Many of the deposits are exploited by small-footprint, underground mining and relatively benign milling operations. Highland's location in an established mining region in Nevada reduces risks associated with land tenure, logistics, and capital and operation costs when compared to many regions of the world. Oceana has an excellent record of discovery and production from low-sulfidation deposits, and we are fortunate to have a Company with such expertise advance our Highland project."
The Highland low-sulfidation-type project consists of 102 Federal lode claims for a total of approximately 825 hectares and is located along the Walker Lane Gold trend. Previous drilling by Bravada's US subsidiary intersected vein zones with locally high- grade intercepts; the Company's best hole, H02013, intersected 1.5 meters (m) of 66.9 grams of gold per ton (g/t) and 397.7g/t silver within a 12.2m intercept of 9.5g/t gold and 109.4g/t silver, with true thicknesses estimated at 65% of the intervals. A thin layer of alluvial gravel covers much of the property and several targets have been identified that have not been previously tested with drilling.
Bravada is an exploration company with a portfolio of high-quality properties in Nevada, one of the best mining jurisdictions in the world. During the past 12 years the Company has successfully identified and advanced properties that have the potential to host high-margin deposits while successfully attracting partners to fund later stages of project development. With the addition of Oceana's option of Highland, four of Bravada's eleven Nevada properties are being funded by partners. As well, there are no NSR-type royalties to vendors that cannot be reduced. Bravada's value is underpinned by a substantial gold and silver resource with a positive PEA at Wind Mountain, and the Company has significant upside potential from possible new discoveries at its exploration properties, most of which host encouraging drill intercepts of gold and which already have drill targets developed by the Company.
OceanaGold Corporation is a mid-tier, high-margin, multinational gold producer with assets located in the Philippines, New Zealand and the United States. The Company's assets encompass the Didipio Gold-Copper Mine located on the island of Luzon in the Philippines. On the North Island of New Zealand, the Company operates the high-grade Waihi Gold Mine while on the South Island of New Zealand, the Company operates the largest gold mine in the country at the Macraes Goldfield which is made up of a series of open pit mines and the Frasers underground mine. In the United States, the Company operates the Haile Gold Mine, a top-tier, long-life, high-margin asset located in South Carolina. OceanaGold also has a significant pipeline of organic growth and exploration opportunities in the Americas and Asia-Pacific regions.
Joseph Anthony Kizis, Jr. (AIPG CPG-11513, Wyoming PG-2576) is the Qualified Person responsible for reviewing and preparing the technical data presented in this release and has approved its disclosure.
On behalf of the Board of Directors of Bravada Gold Corporation Joseph A. Kizis, Jr., Director, President, Bravada Gold CorporationFor further information, please visit Bravada Gold Corporation's website at bravadagold.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Bravada Gold Corporation does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.