Usha Resources Enters into Binding Letter of Intent
Updated: Feb 7
Usha Resources Ltd. (“USHA” or the “Company”) (TSXV: USHA) is pleased to announce that it has entered into a binding letter of intent (the “LOI”) with AJA Mining LLC and Gold Basin Mining EXP LLC (collectively, the “Optionors”) whereby the Optionors have agreed to grant the Company the exclusive option (the “Option”) to acquire (the “Acquisition”) 100% interest in certain 133 mineral claims (the “Mineral Claims” and the “Property”).
The Property is located within the Lost Basin Gold Mining District in Mohave County, Arizona.
High-grade gold samples from quartz veins and breccia zone(s) have been reported by the Optionors. These include samples from the area of the historic Gold Hill Mine (65.8 g/t Au) and from north of the Climax Mine (77 g/t Au).
A 13.7 m RC drill hole returned an intersection grading 0.69% Cu (true width unknown).
While numerous surveys have been conducted, a comprehensive exploration program including geological mapping has not been done over the Property.
The Property is located within the Lost Basin Mining District in Mohave County, Arizona. Numerous gold-bearing quartz veins, as well as placer deposits, occur in this district.
The main gold veins in the Lost Basin were discovered in 1886, but most of the gold production has come from the King Tut placers, which were discovered in 1931. Approximately 1,000 ounces of gold are believed to have been recovered from these placers. According to Bulletin 137 of the Arizona Geological Survey, the veins of the Lost Basin District average 1.2 to 1.8 m in width and some veins are traceable for over a mile on the surface. The material from the veins was reported to average 11.34 g/t, though only limited mining was done. The United States Geological Survey has done considerable work in the Gold Basin – Lost Basin area directed towards better understanding gold mineralization within the districts. Among their recommendations is that the area should be evaluated for potential buried porphyry deposits (Paper 1361).
The historical exploration work on the Property is discussed in a letter report by Mallory of American Heavy Minerals. An 18‑hole RC drill program was carried out from 1992 to 1993. Drill hole LB-10 had a 13.7 m interval which averaged 0.69% Cu, including a 1.5 m interval which graded 0.8 ppm Au. True widths of the mineralized zone are not known. Mallory discusses a “breccia zone” in the area of this drillhole (the “Copper Blow-out”) in a 1993 letter report A sample taken from a backhoe trench within this zone reportedly featured visible gold and assayed from 567 to 3,118 g/t. These results have not been verified by the author. Mallory also references 2 airborne geophysical surveys over the property, including magnetics, resistivity, EM and radiometrics. Various other geological, geochemical and geophysical surveys are referenced by Mallory, indicating that there is considerable exploration data on the Property to review.
A 2013 map provided by the Optionors shows the approximate locations of some high-grade gold and copper samples collected on the Property. These include samples from the area of the historic Gold Hill Mine (65.8 g/t Au) and from north of the Climax Mine (77 g/t Au). A sample grading 19.1% Cu was taken from the area of the Copper Blow-out Showing. These results have not been verified by the author, nor were sample details provided.
Terms of Acquisition:
Pursuant to the LOI, the Company may exercise the Option on the Property by completing the following:
a) making a total payment in the amount of USD$25,000 with respect to the lease of the Mineral Claims on or before the date that is 3 business days after the date upon which the Company has received approval from the TSX Venture Exchange (the “Exchange”) of the LOI (the “Effective Date”);
b) issuing a total of 1,000,000 common shares (the “Shares”) of the Company to the Optionors on or before the date that is 10 days from the Effective Date;
c) making all annual payments and fees to the government with respect to the Property, which currently amount to USD$25,000 per year;
d) making a total payment in the amount of USD$3,000,000 to the Optionors in cash or Shares of the Company or a combination of cash and Shares of the Company within 3 years from the Effective Date. The Shares will be issued at a price based on the closing price of the Company’s Shares on the date preceding the date of the issuance of such Shares.
"We have added a robust gold project without any underlying royalty payments. The payments while completing exploration are minimal and the total payment is only payable if we demonstrate the value of this project," stated Deepak Varshney, CEO of the Company.
The Acquisition and transactions contemplated therein, including the issuance of the Shares, are subject to the final approval of the Exchange.
The Shares will be subject to a four month hold period pursuant to securities laws in Canada.
The technical content of this news release has been reviewed and approved by Mr. Helgi Sigurgeirson, P.Geo., a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Historical reports provided by the Optionors of the Mineral Claims were reviewed by the qualified person. The information provided was mainly in the form of summaries, so the data could not be verified.
We seek Safe Harbor.
USHA RESOURCES LTD.
“Deepak Varshney” CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.