Endurance, Avino finalize Olympic claims option

Oct 18, 2022

2022-10-18 13:08 ET – News Release

Also News Release (C-ASM) Avino Silver & Gold Mines Ltd

Mr. Robert Boyd reports

ENDURANCE FINALIZES AND EXECUTES FINAL OPTION AGREEMENT FOR THE OLYMPIC CLAIMS THAT IMMEDIATELY ADJOIN THE RELIANCE GOLD PROPERTY IN B.C.

Endurance Gold Corp. has finalized a comprehensive option and royalty agreement to earn a 100-per-cent ownership in the former Minto gold mine, and the Olympic and Kelvin gold prospects contained within a parcel of Crown grants and mineral claims. The Olympic claims are located immediately adjoining and contiguous with the company’s Reliance gold property in Southern British Columbia. The road-accessible Reliance property, including the Olympic claims, is located four kilometres east of the village of Gold Bridge and 10 km north of the historic Bralorne-Pioneer gold mining camp which has produced over four million ounces of gold.

The acquisition of the Olympic claims was announced on May 2, 2022, in a letter agreement which has now been replaced by a comprehensive option and royalty agreement.

The Olympic claims are owned by Avino Silver & Gold Mines Ltd.; they are located on the north and south shores of B.C. Hydro’s Carpenter Lake reservoir in the Bridge River Valley, east of the Royal Shear trend and the company’s current drilling focus. The year-round road-accessible properties, including the Reliance property and Olympic claims, total approximately 2,475 hectares.

Under the terms of the finalized comprehensive option and royalty agreement with Avino, the company can earn a 100-per-cent interest in the Olympic claims for:

A total cash consideration in the aggregate amount of $100,000 ($10,000 paid);
The allotment and issuance of up to a total of 1.5 million common shares of the company (100,000 shares issued);
Exploration expenditures in the aggregate amount of $300,000;
All consideration is to be incurred by Dec. 31, 2024;
A payment of 100,000 shares and $15,000 cash is due on or before Dec. 31, 2022.

On vesting its ownership interest, the Olympic claims will be subject to a 2-per-cent net smelter return royalty (NSR), of which a 1-per-cent NSR can be purchased by the company for $750,000 and the remaining balance of the NSR can be purchased for $1-million.

As part of the final requirement to earn its interest, the company agreed to grant to Avino 750,000 share purchase warrants by Dec. 31, 2024, that offer Avino the option to purchase additional shares in the company for a period of three years from the date of issuance. The exercise price of the warrants will be set at a 25-per-cent premium to the 20-day volume weighted-average share price at the issuance date. During the option, if the company is successful in defining a compliant mineral resource of at least 500,000 gold-equivalent ounces on the Olympic claims then the company will be obliged to pay Avino a $1-million discovery bonus.

The original letter agreement was accepted by the TSX Venture Exchange in May, 2022; the terms accepted at the time remain unchanged. Any shares or warrants to be issued will be subject to a four-month hold period on issuance, as per the policies of the TSX Venture Exchange.

Exploration activity on the Olympic claims — the Olympic claims are underlain by epizonal orogenic-type gold targets that include the former producing Minto mine that has produced 17,500 ounces of gold at an average grade of 6.3 grams per tonne (g/t) gold prior to World War II. In addition, there are 11 historic government-documented mineral occurrences on the Olympic claims which include the Minto North, Dauntless, Kelvin and Olympic gold prospects, many of which have also been explored with small underground workings prior to World War II. These prospects are associated with regional-scale structural deformation and/or iron carbonate alteration with analogies to the recent discoveries by the company at the Eagle and Imperial zones, but on subparallel regional structures.

As examples of the gold potential of the Olympic claims, in 2005, Avino reported 14.76 g/t gold over nine metres (estimated true width of 4.5 m) from chip samples in trenching on the Minto North target. At the Olympic target, 1988 drilling reportedly intersected 8.2 gt gold over 3.48 m.

Since the acquisition in May, the company has completed georeferencing of all existing access roads and trails, rock sampling, channel sampling, stream sediment sampling, soil sampling and biogeochemical sampling. Results are pending on most of the early stage exploration activity.

About Endurance Gold Corp.

Endurance Gold is a company focused on the acquisition, exploration and development of highly prospective North American mineral properties with the potential to develop world-class deposits.

We seek Safe Harbor.

https://endurancegold.com/