Steele Resources Corporation announced that its subsidiary, Steele Resources, Inc. (“SRI”), has entered into a non-binding Letter of Intent with a group of individual land owners in the state of Montana to acquire rights to 2 patented mining claims known as the Atlantic and Pacific Mine (“the A&P”). The A&P was actively mined in the early 20th Century and produced 128,600 ounces of gold grading 0.09 ounces per ton from 1934 to 1941. Chicago Mining also briefly open pit mined the project in 1991 but did not finish processing an approximately 12,000 ton stockpile grading an average of 0.114 opt gold which remains at the mine site.
The A&P is contiguous with the larger Mineral Hill land position announced in early November and is considered a key piece of the regional mineralization target. Historic reports by Chicago Mining and Newmont Mining state that their geologists believed the A&P contained a substantial gold resource.
CEO Scott Dockter stated, “This mine has a solid history and some very positive indicators. It is a key piece of the Mineral Hill project and the center of a major trend in the area. The historic estimates and the resource potential make it an excellent addition to this land package.”
The non-binding LOI provides terms for SRI to lease two patented mining claims located in the Pony Mining District, near Pony, MT. The LOI includes a $5,000 deposit and allows for a 90 day due diligence period. Upon satisfactory completion of due diligence, execution of definitive agreements, and securing project financing, SRI will enter into a five year lease period with an initial payment of $200,000 and an annual commitment of $100,000 for the next five years. After the lease period expires, SRI will own the A&P outright. The Lessors will also have a 2% NSR on the property during the lease term.
Steele Resources Corporation is a precious metals exploration and development company operated by professionals with extensive exploration, mining, and public market experience. The Company is working to become an active gold producer through exploration, acquisitions, mergers, and by developing its existing portfolio of properties. Its current ensemble of exploration properties, held by SRI, includes two Nevada properties, its Comstock Tyler Project which consists of 600 acres in the historic Comstock District and its Fairview-Hunter Project which consists of 2,300 acres near the Denton-Rawhide Mine.
More information about Steele Resources Corporation can be found at www.steeleresources.com.