VANCOUVER, BC–(Marketwired – September 21, 2016) – Q-Gold Resources Ltd. (the “Company”) (TSX VENTURE: QGR) (http://www.qgoldresources.com) is pleased to announce it has signed a Purchase Option Agreement with private parties for 5 patented mining claims containing the historic Peck and Oriental Silver Mines. The mines, covering about 80 acres, are located in the Southern Bradshaw Mountains, near Crown King, in the Peck Mining District of Yavapai County, Arizona. The Company has also holds 8 BLM mining claims totalling 160 acres, five of which claims adjoin the newly-optioned mines to the southwest.
Reports abound of extremely high-grade silver produced from the Peck Mine in the late 19th Century. However, as Arizona was only a Territory until 1912 when it became a State, production records are not always complete or readily available. Only records of Peck shipments to San Francisco refiners are known to exist. Therefore, none of these historical production reports meet NI 43-101 standards and should not be relied on for investment purpose.
A publication issued in 1881 (“The Resources of Arizona”, by Patrick Hamilton), reported the silver grade from the Peck at between 200 to 5,000 OPT. The United States Geological Survey (“USGS”) in 1926 reported Peck silver production of 1.5 million ounces from 1875-1883 (USGS Bulletin 782).
Silver mineralization in the Peck consists mainly of silver chlorides and bromides, with occasional compounds of antimony (Sb), with values running up to 24% Sb. The rich silver ore resulted from concentration by supergene (“descending”) fluids, including ground water and waters associated with various intrusive bodies which cut the host formation over time.
In 1883, the Peck was shut down due to a legal dispute between the owners. Attempts to reopen the Mine up through 1906 were generally unsuccessful. A silver recession and two World Wars precluded any more attempts of production during the 20th Century. Other than efforts by Q-Gold, the Peck patents have not been explored or investigated beyond surface and the limited open underground workings.
Although several historical reports mention deeper occurrences of high-grade silver, no ore was ever produced below the 300′ level of the Peck Mine. Based on the results of a Q-Gold geologic sampling team, which entered the Mine, and a Q-Gold ground geophysical survey, which delineated a conductive zone below the 300′ level, the Company has outlined a drill program to test the deeper, unmined zones.
Within the Peck Mine system, the Oriental vein was explored and no reported production from the Oriental Mine has been located. The legal dispute of 1883 shut down development efforts of the Oriental vein. The Mine will be the subject of further exploration by the Company, to determine its silver potential.
The optioned properties are Federally patented mining claims, which are considered as “private property”, and, although subject to Arizona mining and environmental laws, are not burdened by the myriad of regulations associated with public lands.
The 2-year Initial Option Period (with a 2-year renewal possible) requires a series of semi-annual cash payments to Owners and gives Q-Gold the right to conduct exploration and mining operations. The Company may also purchase 100% interest in the Peck and Oriental Mines at any time during the Option Period, for a payment of US$ 560,000 in cash and US$ 500,000 in Q-Gold Shares.
The Purchase Option is subject to the approval of the TSX Venture Exchange.
The Company also announced that its 660 metre diamond drilling program on the “A” Anomaly at Crown King, Arizona, has been completed and fully evaluated.
Mapping and sampling of surface exposures on “A” Anomaly from historic pits and short adits indicated that sulfide (pyrite, chalcopyrite and arsenopyrite) and oxide (chloroargyrite and hetaerolite) minerals could be found. This observed mineralogy in surface samples of the Anomaly A Prospect suggested that a Copper-Zinc Volcanogenic Massive Sulfide (“VMS”) was present. A similar mineralogy and stratigraphic sequence was observed in the adjacent mineralized zones of the De Soto, Peck and Swastika Mines.
Results of the drilling showed that the “A” Anomaly geophysical target is an exhalative sequence of a VMS deposit. The encountered metallic intercept zone averaged 200 feet in stratigraphic thickness with iron contents from 22 to 46%. However, copper, lead, zinc and gold contents were below commercial concentrations. Therefore, the project has been terminated and the acreage released.
The technical content of this release was reviewed and approved by Brian A. Beck, P. Geo., CRS, a “Qualified Person” as defined by National Instrument 43-101.
About Q-Gold Resources Ltd.
Q-Gold is a Canadian-based mineral exploration company currently exploring for precious and base metals on its Arizona and Ontario prospects.
Neither the 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.
Contact Information:
J. Bruce Carruthers II
Chairman
(928) 600-4977
[email protected]
Website: http://www.qgoldresources.com
