Victory Resources Corporation (CSE:VR) (OTCMKTS:VRCFF) (FRA:VR62) is poised to start a work program in January in Nevada, USA after it struck an option deal with Silver Range Resources Ltd (CVE:SNG) (OTCMKTS:SLRRF) (FRA:8SR) on its Loner property.
The company can acquire an 80% interest in the asset over four years by paying U$140,000 in cash and U$260,000 in cash and shares.
Shares in Victory soared 70% in Toronto on the day to stand at C$0.085 each.
The asset lies in the southern Sonoma Range and currently comprises 16 claims covering historic workings and exposed low-sulphidation gold mineralization.
READ: Victory Resources appoints top mining engineer David Deering to its board and as VP of exploration
Premier Gold Mine Ltd's (TSE:PG) (OTCMKTS:PIRGF) (FRA:P2O) Goldbanks epithermal gold project lies about 12 miles to the south, while Nevada Sunrise Gold Corp's (CVE:NEV) (OTCMKTS:NVSGF) (FRA:NV81) Coronado VMS project is about 6 miles to the southeast.
"Loner is a promising property. Building from the high-quality samples generated to date with Silver Range, our team is preparing to accelerate exploration activities with the launch of our 2021 work program," said David Deering, Victory's vice-president (VP) of exploration in a statement.
"Loner gives Victory year-round exploration access in a zone within Nevada that is in the vicinity of Goldbanks, an area where Barrick, Kinross and Premier have interests."
Bedrock grab sampling at Loner so far has returned up to 16.6 grams per ton (g/t) gold and chip sampling in old workings have shown up to 25.7 g/t of the yellow metal over 1.83 metres (m).
Meanwhile, prospecting during 2020 identified additional workings on the expanded claim block, returning grab samples up to 10.6 g/t gold.
Victory said the initial focus of the work set to start in January included expanding the soil sampling grid to hunt for extensions to known veins or parallel structures, and to better define the known vein system with a 500m diamond drill program once permits are received.
Victory has already paid an initial payment of U$20,000 on signing and must also complete 1,200m of diamond or reverse circulation drilling on the property to exercise the option.
Upon vesting, Victory Resources and Silver Range will form a joint venture, subject to standard industry terms.
Victory is a diversified investment company with mineral interests in North America. It is also looking for other exploration opportunities.
---Updates for share price---
Contact the author at email@example.com