Rhyolite has the right to acquire a 70% interest in the Suku Passi Project in Suriname. 

Project Highlight
  • The recently consolidated 33,466 hectares Suku Passi Project is a land package composed of five concessions located within the prolific Guiana Shield 20 kilometers from IAMGOLD's world class Rosebel Gold Mine in Suriname (see Figure 1).
  • The Project has exploitation rights for mining development and production. Most of the mining and exploration to date has been conducted at the Suku Passi Pit and Bob's Pit.
  • At the Suku Passi Pit, the exposed mineralization is at least 30 meters wide with values up to 25.5 grams gold per tonne. At Bob's Pit, one channel sample panel of 17 meters in width averaged 9.5 grams gold per tonne and an adjoining panel returned 32 meters of 2 grams gold per tonne. Mineralization at both Suku Passi and Bob's Pits are open along strike and at depth, and are part of the same mineralized zone.
  • There has been no drilling to date at the Suku Passi Project, but mining by concession holders in saprolite with sampling and mapping from 2014 to 2016 shows characteristics similar to IAMGOLD's Rosebel and Newmont's Merian deposits. Mining in soft rock recovered gold from highly altered sediments and quartz veins.
The 335-square-kilometre land package held in five concessions consolidates for the first time the Suku Passi and Bob's concessions on the Guiana Shield in Suriname. The Project is accessible by road and is located approximately 20 kilometers from IAMGOLD's world class Rosebel Mine.

The Suku Passi and Bob's mineralization extend to the north-northwest based on structural trends, small-scale mining, geophysical interpretation and auger data (see Figure 2).

The mineralized zone is similar to the Rosebel mines and is defined by multiple quartz veins of varying grade and thickness within a siliceous altered rock. Based on channel and grab samples, the mineralized zone as seen in the Suku Passi Pit is at least 30 meters in width and is open at depth and along strike in both directions. At the adjoining Bob's Pit, one channel sample panel of 17 meters in width averaged 9.5 grams per tonne and an adjoining panel was 32 meters of 2 grams per tonne. The panels appear to be a sequence of tension veins. In both pits only small scale mining with sluiceboxes was used and the mining stopped when sap-rock was encountered due to the harder rock encountered.

Grab and channel sampling present a compelling case for the gold potential of Suku Passi. A total of 219 rock chip samples were collected with 19 samples having values greater than 1000 ppb and a high value of 25.5 grams. At Bob's pit, a total of 276 channel samples were also collected which returned significant gold values. Rhyolite will first test around known mineralization exposed in the Suku Passi and Bob's pits and also conduct an airborne geophysical Survey and Lidar survey for ground control. Drilling is expected to start in the long dry season after initial exploration and expansion of auger sampling and trenching.

Highlights of the Transaction

Rhyolite has the right to earn up to a 70% interest in the Suku Passi Project by completing the following:

Suku Passi concession
For a 51% interest:
  • Initial Cash Payment of US$400,000 and issuance of the Consideration shares to the Vendors within 4 weeks from the date of the Suku Passi Joint Venture and Earn-in Agreement (the "SP Agreement Date")
  • Cash payment of US$400,000 and committed work capital of US$500,000 within 12 months of the SP Agreement Date
  • Cash payment of US$300,000, share payment of US$100,000 and committed work capital of US$1,000,000 within 24 months of the SP Agreement Date
  • Cash payment of US$300,000, share payment of US$100,000 and committed work capital of US$1,500,000 within 36 months of the SP Agreement Date
  • Cash payment of US$300,000, share payment of US$100,000 and committed work capital of US$2,000,000 within 48 months of the SP Agreement Date
For a 70% interest:
  • Cash payment of US$300,000, share payment of US$100,000 and committed work capital of US$2,500,000 within 60 months of the SP Agreement Date
  • Deliver a pre-feasibility study ("PFS") and cash payment of US$2,500,000 within 96 months of the SP Agreement Date

Bob's Pit concession
For a 51% interest:
  • Initial Cash Payment of US$100,000 and issuance of the Consideration shares to the Vendors within 4 weeks from the date of the Bob's Joint Venture and Earn-in Agreement (the "Bob's Agreement Date")
  • Cash payment of US$100,000 within 6 months of the Bob's Agreement Date
  • Cash payment of US$150,000, share payment of US$50,000 and committed work capital of US$200,000 on or prior to each of the 12 month, 24 month, 36 month, 48 month and 60 month anniversary of the Bob's Agreement Date
For a 70% interest:
  • Deliver a PFS and cash payment of US$750,000 within 96 months of the Bob's Agreement Date

Figure 1: Suku Passi is located on the prolific Guiana Shield.


Figure 2: Mineralized zones at the Suku Passi and Bob's pits.
 

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