The Yuge Gold property, owned by Trifecta Gold Ltd. (TSX-V:TG), is located in Humboldt County, approximately 55 kilometres south of Denio in the Varyville Mining District. Silver Range retains a 2% Net Smelter Return Royalty (“NSR”), half (1%) of the NSR can be purchased for US$1,000,000. Silver Range is also entitled to a one-time cash payment (“Defined Resource Payment”) of US$2.00 per ounce of gold (or the value equivalent in other metals) based on the number of ounces of gold (or the value of equivalent in other metals) identified in the earlier of a measured or indicated mineral resource, or a proven and probable mineral reserve, as contained in a NI 43-101 compliant technical report applicable to the Property.
The property covers the Columbia and Juanita Mines which produced on a small scale between 1870 and 1937. Most recent reported production was 2,350 tons in 1936-37 from the Columbia Mine. Exploration in the early 1980’s included the completion of several drill holes beneath the Columbia Mine workings as well as geophysical and geochemical surveys, geological mapping and sampling. Silver Range staked the Yuge Property in 2018, following up results documented in a large proprietary exploration database assembled by major and junior mining companies operating in Nevada and Utah from the 1970’s through the early 2000’s.
Gold on the Yuge property occurs with arsenopyrite in mesothermal quartz veins and adjacent wall rock. These occur in sub-parallel shear zones up to 60 m wide and over 1,200 m long. Selected surface grab samples collected on the property by the Nevada Bureau of Mines and Geology returned assays up to 15 g/t Au and similar samples collected by Homestake Mining Company assayed up to 53.0 g/t Au. Highest gold grades were reported from near-surface oxidized vein material where documented run-of-mine sorted ore assayed greater than 34 g/t Au and reported sampling of a crown pillar returned 2.4 m @ 16.8 g/t Au including 0.6 m @ 50.7 g/t Au. Sulphide ore occurs at depths greater than 30 m with arsenopyrite-rich material reportedly assaying greater than 17.4 g/t Au. A reported true-width drill intersection in this material at 49 m depth returned 3.3 m @ 9.70 g/t Au. Historical drilling intersected gold mineralization or open stopes in all holes reported but only to a maximum depth of 100 metres. Silver Range believes there is considerable potential to discover similar mineralization at depth given the mesothermal character of the veins and shears and the considerable depth extent of gold mineralization in deposits of this class.