Golden Arch options Arizona gold bet

Vancouver-based Golden Arch Resources (GAI-V) has inked a deal with an Arizona-based partnership to lease the Mildred Peak property in Pima Cty., Ariz.

Altar Resources Partnership gets an immediate US$8,000 and 150,000 shares of Golden Arch. Subsequent payments include a further 200,000 shares and US$12,000 payable on the first anniversary of the agreement, and 300,000 shares and US$20,000 payable on the second anniversary. To keep the deal in good standing, advance annual royalty payments of US$20,000 start three years after the agreement.

Golden Arch will have to meet work commitments of US$50,000 in the first year of the lease, US$150,000 in the second year, and US$300,000 in the third.

Should the property go into production, Altar retains a 1% net smelter return or a 20% net profit interest, at its option. Golden Arch is permitted to recover its preproduction expenses and advance royalties before Altar’s retained interest kicks in.

Gold mineralization at Mildred Peak occurs in a Jurassic-aged conglomerate unit intruded by Tertiary felsic rocks. It takes the form of veins, veinlets, and disseminations with pyrite and chalcopyrite. There has been some soil sampling on the property with gold values in soil up to 2.8 grams per tonne.

Golden Arch has arranged a private placement of 2 million shares for $100,000 to finance the acquisition and initial work.