Tri-Valley Corp., an oil and natural gas producer in California with two exploration-stage gold properties in Alaska, this week announced that its minerals subsidiary Select Resources Corporation Inc. has inked an agreement with US Gold Corp. for a four-year exploration lease and purchase option for Select’s Richardson Minerals Project in Alaska.
Per the agreement, US Gold will acquire an exploration lease for Richardson, as well as an option to purchase a 60 percent interest in the project, thereby entering into a joint venture with Select for its development.
Maston N. Cunningham, president and CEO of Tri-Valley, said the agreement was completed on schedule and that the companies began exploratory field work on the Richardson site July 5.
“We look forward to working with US Gold on the exploration and development of the Richardson Minerals Project to determine the potential value of prospective intrusive-related gold mineralization, which has been indicated by previous geologic studies,” Cunningham stated in the press release.
Cunningham also said the agreement will enable Select to reduce its operating costs by approximately $200,000 annually.
Select has already received its first payment of $200,000 from US Gold. In addition to subsequent payments of $100,000 for the remaining two years of the exploration lease, if US Gold exercises its option to purchase a 60 percent interest in Richardson, US Gold will complete $5 million in exploration expenditures and 30,000 feet of core drilling.
However, US Gold may terminate the agreement after completing $2.2 million in exploration expenditures and performing 15,000 feet of core drilling at Richardson, which is required during the first two years of the agreement.
For more information visit www.tri-valleycorp.com