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Thursday, Feb 13, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Phenom Resources inks four year option for King Solomon Gold Project in Nevada

Exercising the option means paying an aggregate of USD$150,000 and 75,000 shares over four years

Phenom Resources inks four year option for King Solomon Gold Project in Nevada
Image via Phenom Resources.

Phenom Resources Corp. (TSXV: PHNM) (OTCQX: PHNMF) (FSE: 1PY0) signed a four-year option agreement to pick up the King Solomon Gold Project in Nevada.

The project is 178 claims over Carlin-type gold over 1,140 hectares, and situated 32 kilometres south of its Dobbin Gold Project. The project is also approximately 45 km east of Kinross Gold‘s (TSX: K) (NYSE: KGC) Round Mountain gold deposit, and 45 km southeast of the Northumberland Carlin-type gold deposit.

In order to fully exercise its option and acquire the King Solomon Property, Phenom will will pay an aggregate of USD$150,000 and issue 75,000 shares over four years. Additionally, the vendor will retain a 3 per cent net smelter return (NSR) royalty on any mineral products from the property.

Phenom can buy up to a 2 per cent NSR for USD$3 million at any time, which will reduce the vendor’s NSR to 1 per cent. Furthermore, the vendor requires advanced royalty payments, starting at USD$60,000 per year from years 5-10, USD$75,000 per year from years 11-15, and USD$100,000 per year thereafter until production begins.

Any additional claims staked within an area of interest around the current property will be covered under the same agreement. The company also has a 25-day due diligence period.

“Phenom is only going after gold projects in Nevada that have regional scale targets,” said Dave Mathewson, company director and geological consultant.

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Previous explorers did not understand the significance

A thin layer of tertiary volcanics, about 60 meters thick, covers most of the lower carbonate rock package at the King Solomon Property. Both the volcanic and limestone units are highly silicified and contain gold, silver, arsenic, antimony, barium, mercury, and thallium, typical of Carlin-type gold deposits. Furthermore, surface samples have shown gold concentrations as high as 8.4 g/t from jasperoid within a 3km x 3km gold soil grid.

In the past, four exploration companies have drilled 43 shallow reverse-circulation drill holes in a 600-meter portion of the 4.8 km long mineralized area. The companies drilled most of these holes between 61 meters and 152 meters deep, cutting through about 60 meters of volcanic rock before testing 38 to 99 meters of carbonate rock. The deepest hole reached 183 meters. Additionally, many holes found significant near-surface mineralized zones, including 52 meters averaging 0.72 g/t Au, 67.1 meters at 0.5 g/t Au in volcanic rocks, and 80.8 meters at 0.8 g/t Au in carbonates. The fault patterns at King Solomon are also common in Nevada’s gold deposit districts.

Previous explorers, appear to not have understood the full extent of, and significance of, the stratigraphy or gold model,” said Mathewson.

“Typical of earlier 1990’s explorers, drilling was largely limited to shallow tests of 90m to 122m deep (300-400 feet), and was primarily focused on the potential within the overlying Tertiary volcanic rocks.

The King Solomon Project features a large land package and an extensive data package, including results from previous exploration efforts. The project’s claims are on lands managed by the US Forest Service and the Bureau of Land Management. Maintained gravel roads provide access, and the King Solomon site is approximately 50 km from a paved highway.

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