San Ricardo Project
Santa Cruz Target
- Option agreement with Sundance Minerals to earn 60% interest in the San Ricardo gold-silver property (38,100 hectares) in northern Sonora State, Mexico
- Granite-hosted, fracture/breccia-controlled, oxide Au/Ag
- Open-pit and underground potential
- Oxidation can be to 150m depth in northern Sonora
- Drive-in access / Year-round work
Terms of the Agreement
- 730 underground channel, surface rock chip and trench channel samples
- Weighted underground gold-grade averages (true widths - oxide mineralization) on 8 different levels along 15-54m sections of the vein range 1.4m @ 1.9 g/t to 2.9m @ 22.9 g/t and 51 of the 83 saw-cut channel samples average 12.2g/t gold over 2.5 meters.
- Mineralization is open along strike and at depth.
- Trench and surface rock-chip sampling results within 150m x 200m triangular area of mineralized hematite stockwork and fracturing indicate open-pit potential average 0.72g/t gold
- Silver values range from anomalous to 452 g/t
- Other targets within the large San Ricardo claim block adjacent to current and historic gold placer workings show values to 4.5 g/t gold from both vein outcrop and float material
Paget has an exclusive right to earn an initial 51% interest (the "First Option") in the San Ricardo Project by incurring US$500,000 in exploration expenditures by the first anniversary of the closing date and an additional US$5,000,000 by the fourth anniversary of the closing date and by reimbursing Sundance for 51% of the US$250,000 in payments made or to be made to the underlying owner (the "Underlying Payments").
Paget also retains an exclusive right to earn an additional 9% interest (the "Second Option") by funding a pre-feasibility study in the three-year period following the 51% earn-in date. In order to maintain the Second Option in good standing, Paget must incur US$1,000,000 in exploration expenditures by each of the first, second and third anniversaries of the 51% earn-in date and must reimburse Sundance for an additional 9% of the Underlying Payments. (See news release dated September 11, 2012 for more details)