Executes US$4 Million Purchase Agreement With Newmont
Gold Bull Resources Corp. (TSX-V: GBRC) has executed a Purchase and Sales Agreement to acquire 100% of the Sandman Gold Project in Nevada from Newmont for US$4 million in cash.
Located 23 km south of the successful Sleeper gold mine, Sandman has proven gold mineralisationcomprising a total Resource of 309,900 oz Au (comprising of Measured and Indicated Resource of 271,900 oz Au plus an Inferred Resource of 38,000 oz Au
Gold Bull is confident the project has expansion potentialwith significant drilling and exploration conducted post-resource estimate and massive gaps in exploration under cover.
The Sandman property (117 km2; Sale Boundary) is located on checkerboard mix of public and private lands. The project consists of 445 unpatented lode mining claims and ~6 km2 (1,480 acres) of surface ownership. The existing net smelter return production royalty obligations will transfer from Newmont to Gold Bull.
No significant historic mining activities have taken place within the Sandman project limits. Modern exploration of the Sandman project began in 1987 when Kennecott Exploration Company discovered gold in outcrop at North Hill.
Exploration work completed at Sandman to date has resulted in the discovery of four gold deposits and the identification of other target areas that remain to be explored. Sandman provides the potential for near-term production from one or more of the known deposits. There is also excellent potential for the discovery of new precious-metal mineralization beyond the limits of the deposits, as demonstrated by the discovery of the Abel Knoll deposit in 2006.
Gold Bull believes that Sandman is a property of merit that warrants significant additional expenditures.
Programmes aimed at increasing the size of the Sandman mineral resources and defining new areas of mineralisation are justified in a Phase I work program. Drilling at the four deposit areas in 2006 and 2007 concluded with open-ended mineralisation in a number of drill holes, and step-out RC drilling in these areas should continue.
Sandman is a large property that is extensively covered by alluvial gravels and wind-blown sand. Four discrete gold deposits have been discovered at Sandman, which proves the existence of multiple hydrothermal systems and suggests that the potential for the discovery of additional deposits is excellent. \Geophysical, geochemical, and geological data have led to the identification of a number of quality exploration targets that are not fully explored. The Phase I program recommends first-pass or follow-up drill testing of these targets. Further work aimed at developing new exploration targets is also warranted. Geophysical and geochemical surveys should be completed with the goal of defining new targets. Additionally, scoping-level economic studies should be completed as deposit resources continue to be refined.