Ely Gold Options Cathedral Well Gold Project from Eurasian Minerals
July 7, 2014
Vancouver, British Columbia, July 7, 2014 Ely Gold and Minerals
Inc. ("Ely Gold") (TSX.V: ELY) is pleased to announce the signing of an
Exploration and Option Agreement (the "Agreement") with
Eurasian Minerals Inc. ("EMX") (TSX Venture: EMX; NYSE MKT: EMXX)
through its wholly-owned subsidiary Bronco Creek Exploration, Inc., for
EMX's Cathedral Well gold project (the "Project"). The Project is at
the southern end of the Battle Mountain-Eureka gold trend, approximately
55 kilometers southwest of Ely, Nevada. The Cathedral Well property
bounds Ely Gold's Green Springs project area to the east and the west.
www.elygoldandminerals.com for more information.
Pursuant to the Agreement, Ely Gold can earn a 100% interest in the
Project by paying EMX a total of $100,000 as follows; US$25,000 upon
execution of the Agreement and US$75,000 over the next three years. EMX
will retain a 2.5% net smelter return (NSR) royalty, inclusive of an
underlying 0.5% NSR royalty.
In addition, after earning the 100% interest in the Project, Ely Gold
will pay EMX annual advance royalties equal to 20 ounces of gold each
year beginning year four of the Agreement. After completion of a
feasibility study, prepared in accordance with the requirements of NI
43-101 and CIM definitions and guidelines covering either, or both, of
the Project and the adjacent Ely Gold properties, the annual payment
will increase to 35 ounces of gold each year thereafter until
commencement of commercial production from either, or both, of the
Project and the adjacent Ely Gold properties. Ely Gold may purchase 0.5%
of the EMX NSR royalty by paying Eurasian 500 ounces of gold within 60
days after commencement of commercial production from either, or both,
of the Project and the adjacent Ely Gold properties. However, EMX will
not retain any royalty on Ely Gold's existing Green Springs project.
Cathedral Well is located approximately 10 kilometers south of the Mount
Hamilton gold project, and surrounds the historic Green Springs mining
district. USMX produced 1.1 million tonnes at an average grade of 2.1
g/t from four open pit mines in the district from 1988-1990 (Russell,
2005). Ely Gold has consolidated the Green Springs district and
assembled much of the historic data into a property wide database of
geochemistry, geophysics, and drilling in order to re-evaluate the
district's exploration potential. The Green Springs district contains
numerous outcropping jasperoids and de-calcified zones developed along
the Joanna-Chainman sedimentary rock contact, as well as widespread
alteration in sedimentary units above and below the Chainman Formation.
Three of the historic open pit mines exploited oxide gold mineralization
developed in the upper Chainman and along the Joanna-Chainman contact
which are important host units in the region (i.e., Midway Gold's Gold
Rock deposit and Pilot Gold's Griffon project). Several northern
historic exploration holes, drilled by USMX, revealed mineralization
associated with the underlying Pilot Shale, which is another important
host unit in the region (i.e., Midway Gold's Pan deposit and Alligator
Ridge). The Pilot Shale remains largely untested across the property,
and lies at relatively shallow levels within the eastern portion of the
EMX acquired Cathedral Well through staking in 2008, and immediately
optioned the property to a wholly-owned subsidiary of Eldorado Gold
Corp. ("Eldorado"). EMX and Eldorado completed 30.5 line kilometers of
NSAMT and CSAMT geophysical surveys, soil and stream sediment surveys
totaling 1,597 samples, and identified seven targets that were permitted
for drill testing. Six reverse circulation drill holes totaling 1,426
meters were completed over the western target area. The Agreement allows
for Ely Gold to retain all the EMX data.
Ely Gold has submitted a Plan of Operations and an Environmental
Assessment to the US Forest Service which will permit a drill program to
test multiple targets within the consolidated land package. Targets
will include the Chainman, Joanna and Pilot Shale formations. Ely Gold
will be the operator of the program, with technical assistance from EMX
through a defined Management Committee arrangement during the option
Trey Wasser, Ely Gold's President & CEO, commented on the
transaction. "We are very pleased to have executed this transaction with
EMX. This will consolidate the land package at our 100% owned Green
Springs property with claims that appear to have extensions of historic
mineralization and are the site of the historic USMX mining
infrastructure. The Agreement will allow us to own Cathedral Well claims
100% with no work commitments and will add to our extensive data base
while we benefit from the technical expertise of the Bronco Creek team."
"With the submission of the Environmental Assessment and the acquisition
of the additional data, Ely Gold is on track to start a district wide
exploration program this fall in one of the world's premier mining
jurisdictions", said John Brownlie, Ely Gold's Executive Chairman.
About Ely Gold. Ely Gold & Minerals Inc. is focused on the
acquisition and development of gold resources in North America. Ely Gold
maintains a 20% fully carried interest in the Mount Hamilton project
that is advancing towards production.
About EMX. About EMX. Eurasian Minerals Inc. is a royalty
generator with a growing portfolio. Eurasian leverages asset ownership
and exploration insight into partnerships that advance our mineral
properties where EMX retains royalty interests. EMX complements its
generative business through strategic investments and third party
This press release has been read and approved by Stephen Kenwood, P.
Geo, a director of the Company and the Company's Qualified Person.
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO
For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.
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.