Gold Bull Resources Corp. [GBRC-TSXV; BLSSF-OTC] has signed a letter of intent to acquire 100% of the Coyote Mine Project from private company Desert Mountain Gold LLC. Coyote is located in Juab County, western Utah, and is considered prospective for gold and silver mineralization. The project comprises 83 lode mining claims for approximately 1,715 acres and two state metalliferous mineral leases for approximately 1,370 acres for a total of 3,085 acres.
Gold Bull has the option to acquire 100% of the project by making a continuing annual payment of US$50,000, which will convert to a 3% net smelter royalty (NSR) in favour of Desert Mountain Gold LLC upon production commencing.
Gold Bull can reduce the NSR by paying $1-million per 1% NSR reduction, to reduce up to 2% of the NSR. Completion of a definitive agreement is subject to Gold Bull completing detailed due diligence of the Coyote project.
Highlights include high-grade historical drilling results of up to 8.19 g/t gold and 1,060 g/t silver.
Sporadic and shallow historical drilling has not adequately tested the main target/feeder zone because the shallow zone is typically leached of metal sulphides.
There are multiple high-grade rock chip sample results; however, poor location data provided (requires field verification during due diligence period).
There is a prospective and fertile geological setting, including a 150-metre outcropping jasperoid vein.
Gold Bull chairman, Craig Parry, commented: “We view western Utah as highly prospective yet underexplored region. Utah is a mining-friendly state and it is a jurisdiction that Gold Bull will be taking a closer look at. We look forward to learning more about the Coyote project as the historical numbers are extremely encouraging.”