TSX-V:ELY
VANCOUVER, Oct. 27, 2016 /CNW/ - Ely Gold & Minerals Inc. ("Ely Gold"
or the "Company") (TSX-V: ELY, OTC: ELYGF) is pleased to
announce that Novo Resources Corp. (TSX-V: NVO, OTCQX:
NSRPF), through its wholly owned subsidiary Novo Resources
(USA) Corp ("Novo") has
exercised its option to purchase 100% of 24 unpatented mining
claims in Elko County, Nevada (the
"Claims"). The Claims, known as the Tuscarora Project, were
lease/optioned by Novo on November 7,
2014 (the "Option Agreement").
The Option Agreement allowed Novo to purchase 100% of the Claims
by making lease payments aggregating US$100,000 over time. The final payment, which
was due on November 7, 2016, was paid
by Novo on October 4, 2016.
The Option Agreement also provides for:
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1. a sliding scale net
smelter returns royalty, subject to the gold price, as
follows:
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- less than or equal to $1,500
- greater than $1,500.00 but less than or equal to
$2,000
- greater than
$2,000
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Two percent
(2.0%)
Three percent
(3.0%)
Four percent
(4.0%)
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2. an advance minimum royalty
payment as follows:
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- third through fifth anniversaries
- sixth through tenth anniversaries
- eleventh and succeeding
anniversaries
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$4,000
$8,000
$12,000
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3. an area of interest of ½
mile
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Ely Gold, through its wholly
owned subsidiary, Nevada Select Royalty, Inc. was the underlying
owner of the claims through staking and owns 50% of the Option
Agreement which was executed in partnership with Platoro West Inc,
a privately held Nevada
corporation. Ely Gold and Platoro
West will each be deeded 50% of the royalty and will each be
entitled to 50% of the advance minimum royalty payments.
Novo recently completed a 4,775 foot (1,455 meters) reverse
circulation drill program Tuscarora. Eight holes targeted the
pediment-covered Navajo vein, a one km long target situated along
the south-southeast extension of the Navajo vein which was the most
prolific past-producing vein in the Tuscarora mining district. In Novo's news
release, dated September 13, 2016, it
announced the first assay results from this program including an
intercept of 143.5 grams per tonne (gpt) gold over 1.5 m.
Additional results, reported in a news release dated October 12, 2016, included intercepts of 21.50
gpt gold over 1.5 meters and 7.37 gpt gold over 3.1 meters within
an intercept of 1.72 gpt gold over 35.1 meters.
About Ely
Gold
Ely Gold is
focused on developing recurring cash flow streams through the
acquisition, consolidation, enhancement, and resale of highly
prospective, un-encumbered North American precious metals
properties. Ely's property development efforts maximize each
property's potential for acquisition, while reserving significant
royalty interests. Additional information about Ely Gold is available at the Company's website,
at www.elygoldinc.com
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey
Wasser, President & CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Ely Gold & Minerals
Inc.