(Updated November 12th, 2021)
The South Lone Mountain property is located about 32km northwest of the town of Eureka in central Nevada. Bravada owns 100% interest in 28 unpatented mining claims, located on U.S. federal land managed by the Battle Mountain BLM office, subject to a 1% NSR royalty to the original vendor. One half of this (0.5%) can be purchased for US$3,000,000. Many of the initial claims were staked by Placer Dome as part of a property agreement with the Company. Placer contributed money to drill nine reverse-circulation and mud-rotary holes on the property. Placer was purchased by Barrick and the agreement was terminated.
In October 2014, Bravada entered into a lease with option to purchase agreement with Goldspike Exploration Inc. (now Nevada Zinc Corp.) to acquire a 100% interest in the property for lease payments of $325,000 over ten years. In addition, Bravada received 50,000 Goldspike common shares (subsequently sold) and 100,000 Nevada Zinc common shares in the event a National Instrument 43-101 combined resource estimate for the company's Lone Mountain zinc property and the property indicates that at least 10 per cent of the reported tonnage is attributable to the property. All lease payments can be applied to the final purchase price of $325,000 (U.S.), after which advance minimum royalty payments become due annually in the amount of the cash equivalent of 50 ounces of gold. The property has now been returned to Bravada.
Bravada and a previous owner of the property have royalties on production from the property. Bravada holds a 1.5-per-cent net smelter returns royalty on base metals production and a 3-per-cent net smelter returns royalty on precious metals production. Bravada's base metal NSR can be reduced to 1 per cent and its precious metals NSR can be reduced to 1.5 per cent concurrently, not individually, by Nevada Zinc for a total cash payment to Bravada of $3-million (U.S.). As indicated in the first paragraph, the previous owner of the property holds a 1-per-cent NSR on both base and precious metal production from the property. Nevada Zinc can concurrently, not individually, buy down the royalty on both base and precious metals to 0.5 per cent for total cash consideration of $3-million (U.S.).
Most of the property is covered by gravel, but hints to the bedrock geology are present on the east flank of the project and the adjacent area of Lone Mountain. Several relatively deep holes in the basin also have defined the geology. The South Lone Mountain project is on the northwest-trending Battle Mountain-Eureka gold trend. The basin to the west of Lone Mountain has been downthrown at least 300m from the bedrock exposures on Lone Mountain. Seismic evidence and drilling suggests a series of Northeast-trending normal faults the cut the basin. Several northwest trending faults are also indicated by the seismic work. Most of the drill holes in the basin have encountered at least 300m of gravel cover.
The Property is adjacent to a historic lead-zinc producer, the Lone Mountain Zinc mine, which reportedly produced almost 5 million pounds of zinc and 650,000 pounds of lead through 1964. Thick zones of high-grade zinc and lead were intersected on Nevada Zinc’s adjacent property and soil sampling suggests that mineralization may extend onto the Company’s claims. Alteration and geochemistry imply that the mineralization at the Lone Mountain Zinc mine is related to a Mississippi-Valley-type replacement deposit.<