GOLDCLIFF ACQUIRES ADVANCED STAGE NEVADA GOLD PROJECT George Sanders, President of Goldcliff Resource Corporation (“Goldcliff” or the “Company”) is
#400 – 789 W. Pender St. Vancouver, B.C. V6C 1H2 Phone: 250-764-8879 www.goldcliff.com Toll Free: 866-769-4802 GCN.TSXV www.directroyalty.com [email protected]
June 7,2016
GOLDCLIFF ACQUIRES ADVANCED STAGE NEVADA GOLD PROJECT
George Sanders, President of Goldcliff Resource Corporation (“Goldcliff” or the “Company”) is pleased to announce that the Company has signed a Letter of Intent to acquire a key position in the advanced stage Pine Grove Gold Project located in Lyon County Nevada.
The Wilson patented claims, comprising 33.55 acres, form part of the Pine Grove Gold Project currently being developed by Lincoln Mining Corp. The Pine Grove project is comprised of two deposits, the Wilson and the Wheeler, which host cumulative measured and indicated resources of 3,060,000 tonnes of 1.37 g/t Au at a 0.24 g/t cut-off. The Wilson deposit on the Wilson patented claims contains 1,373,000 tonnes of 1.20 g/t Au (43-101 Technical Report, Pine Grove Project by Telesto Nevada, Inc. dated February 4, 2015).
With the Letter of Intent, Goldcliff will make an upfront payment to the Lessor of $61,729.84 (US) to cover two years of arrears on advance royalty payments plus interest. Goldcliff will assume the obligation of $25,000 (US) annual advance royalty payments and a 2.5% Net Smelter Return (NSR) royalty on all production from the patented claims.
The Lessor is also entitled to a NSR royalty of 5% on all Lincoln Mining located claims within a sixmile area of influence, excluding other patented claims that comprise a portion of the Pine Grove project. Goldcliff has purchased for $25,000, a six-year option to buy down the NSR to 3% at a rate of $75,000 per percentage point for three years, and $150,000 per percentage point for an additional three years.
Goldcliff has commenced discussions with Lincoln about jointly advancing the Pine Grove project. The Pine Grove project is road accessible 21 miles southeast of Yerington, Nevada. The property lies within the central portion of the Walker Lane geologic province near its western margin. Since 1991, 87,967 feet in 272 RC and core holes have been drilled by Lincoln and previous operators. This drilling outlined the surface and near surface resource blocks in the Wilson and Wheeler deposits. Lincoln also conducted metallurgical testing to establish that mineralization responds to heap leach processing. The project has been advanced to the Preliminary Economic Analysis level of detail.
Company President George Sanders says, “We are excited at this opportunity to acquire an advanced stage project that fits the phased production business model. Our strategy for the renewed precious metals cycle is to provide shareholders direct exposure to precious metals production (see Goldcliff News Release May 2, 2016). The acquisition of a portion of the Pine Grove project is an important component of that strategy.”
Recent work at Pine Grove has focused on advancing the known gold deposits to the exclusion of several compelling exploration targets. Goldcliff will conduct a thorough review of exploration targets on the Wilson Patented ground and provide further comment when the review work is completed.
Goldcliff has entered into a Loan Agreement with Company President George Sanders who will advance funding of $140,000 for the due diligence and acquisition costs by way of a one year, interest free loan to the Company. A share bonus of 560,000 common shares of the Company will be payable to Mr. Sanders subject to regulatory approval.
Ed Rockel, P. Geo and Grant Crooker, P. Geo, qualified persons as defined by National Instrument 43-101 supervised the preparation and verification of the technical information contained in this release.
For further information, please contact George W. Sanders, President, at 250-764-8879, toll free at 1-866-769-4802 or email at [email protected].
GOLDCLIFF RESOURCE CORPORATION
Per: “George W. Sanders”
George W. Sanders, President
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