OSBORNE PARK – Australian exploration firm Discovery Alaska Limited said on Monday it had signed a binding deal to acquire the Boulder Creek gold-silver project in Idaho, marking a strategic move to expand its U.S. portfolio amid record precious metal prices.
The company, listed on the Australian Stock Exchange (ASX: DAF), executed a Heads of Agreement giving it an option to acquire a 100% interest in the roughly 640-hectare Idaho State Lease, located about 90 kilometres southwest of Boise.
The project is considered prospective for high-grade epithermal vein and disseminated gold-silver mineralisation. It was identified based on historical exploration work conducted by Nerco, Inc. in the 1980s, before the company was taken over by Kennecott Corporation, a unit of Rio Tinto.
No modern exploration has been conducted at the site, which is near the historical mining town of Silver City and close to Integra Resources Corp.’s DeLamar project, where Kinross Gold Corporation historically operated until the late 1990s.
Discovery Alaska plans to review historical data and assess the geology to plan an initial exploration program, the company said in a statement.
“This is a significant opportunity to advance a gold-silver project at an exciting time for the gold and silver sector, with record prices and located within a proven mining jurisdiction,” said Discovery Alaska Director Jerko Zuvela.
Under the agreement, Discovery Alaska will pay a non-refundable option fee of $30,000 in cash and issue 2 million shares within five business days of completing due diligence, which must be done within 30 days of signing the deal.
Further payments during the option period include $100,000 cash and 3 million shares after one year, $200,000 cash and 1 million shares after two years, and $300,000 cash after three years.
To fully exercise the option and acquire the project within four years, the company must pay $1.5 million and grant a 1% net smelter royalty.
The deal remains subject to due diligence and necessary regulatory approvals.
Discovery Alaska’s primary asset is the Chultina project in Alaska.