Junior explorer Blackrock Gold Corporation (CVE:BRC) says its deal for the Silver Cloud project in Nevada has received the go-ahead from the Venture Exchange, firing the starting gun on pre-drilling assessment work and applying for drill permitting.
Silver Cloud is a huge 11,210-acre claim block in Elko County in the state of Nevada - a popular mining destination.
Move forward on permitting and planning
The property is near the confluence of the Carlin Trend and the Northern Nevada Rift in north-central Nevada and has received only limited previous drilling and boasts no historic resource.
"We are pleased to have finalised the lease agreement with Pescio Exploration and now can move forward on permitting and planning for drilling exploration at the Silver Cloud project, Greg Schifrin, chief executive, told investors.
"Blackrock Gold is eager to get started on this project with the historic mercury mining and the positive results of the previous gold exploration by major mining companies we believe we are exploring an area that has an existing gold system present that needs to be defined."
A limited drill programme at Silver Cloud was completed by Teck (10 holes) between 1999 and 2001 and one hole hit 1.5 m (meters) at 145 g/t (grams per ton) gold and another encountered 22.8m at 5.67 g/ton gold.
In 2002 Placer-Dome had one drill hole which encountered 12 m at 5.53 g/t gold in the Northwest Canyon approximately 2 km west of the Silver Cloud Mine, confirming the presence of high grade gold mineralisation at depth.
Under the terms of the agreement with Pescio Exploration, Blackrock has paid US$100,000 to Pescio and issued 1mln shares.
It has also agreed to pay a finder's fee to David Sidder of Bermuda of 600,000 shares over three years - with the first 200,000 having already been issued.
Shares were unchanged at C$0.13.