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Silverstream Property

Overview

Location: Southern British Columbia (Bralorne Mining Region)
Minerals: Au
Ownership: 100% Gray Rock
Size: 490 ha
Status: Exploration / Option Agreement

Grass Roots Project with Significant Trench Results, Located near Bralorne Mine

The Silver Stream property lies 25 kilometers southwest of the town of Gold Bridge in south-central British Columbia near the renowned Bralorne Mine. Between 1932 and 1971, the Bralorne Mine produced 4.1 million ounces of gold with an average grade 0.52 ounces per ton. Gold. Bralorne remains the largest historic gold producer of the Canadian Cordillera.

Exploration History

Preliminary exploration programs, along a trend of greater than one kilometer in length, consisted of geological mapping, soil and rock sampling, ground geophysics and mechanized trenching. This work was carried out from 1987 to 1996. Two zones hosting anomalous gold values, referred to as the Western and Southeastern anomalies, were outlined. Trenching in the southeastern anomaly in 1991 indicated that a series of parallel gold bearing shears, returning results as high as 0.479 oz/t gold are associated with the anomaly. Trenching on Silver Stream’s western anomaly in 1995 exposed a mineralized shear zone ranging from one to four meters wide and at least 45 meters in strike that returned the following values:

  • 8.9 g/t Au (0.260 opt) over 2.8m
  • 5.8 g/t Au (0.169 opt) over 1.2m
  • 9.6 g/t Au (0.280 opt) over 1.0m
  • 28.4 and 48.0 g/t (0.82 and 1.4 opt) Au from grab samples along strike.

Following the trenching program in 1996, a surface drill program was recommended and was eventually undertaken in 2005. The program, which consisted of three holes covering 250 metres, explored the west zone and encountered a “new” area of gold mineralization but failed to adequately test the areas previously indicated.

In 2016, a new Notice of Work was filed with British Columbia’s Ministry of Energy and Mines to allow the Company to resume exploration on the property. A work plan and budget are being assembled for a new trenching program.

Option Agreement

In 2015, Gray Rock entered into a mining lease agreement for the Silver Stream 2 property with Saxifrage Geological Services Ltd. (“Saxifrage”). In accordance with the terms of the agreement, Saxifrage agreed to pay the Company an annual rental of $10,000 for a term of seven years, with the first payment due on December 12, 2015. In addition, the Company granted Saxifrage an option to purchase the property for $500,000 payable at any time during the term of the agreement, subject to a 5% Net Smelter Returns Royalty on metals and a 5% Gross Overriding Royalty on any jade production. Any future royalty payments due to the Company from Saxifrage after the exercise of option, shall be reduced by $500,000.

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