Silverado to buy La Teko’s Ryan Lode — Companies sign Alaskan agreement worth US$12 million

Silverado Mines (GOLDF-Q) will buy the Ryan Lode gold deposit near Fairbanks, Alaska.

Over five years, Silverado will pay US$12 million to the vendor, La Teko Resources (LAORF-Q), in return for 63 federal and state mining claims covering 1,123 acres.

Silverado will pay US$500,000 upon completion of the deal; US$300,000 during the first year; US$400,000 in the second; and US$700,000 in the third. The company has also agreed to spend US$1 million on exploration in each of those years.

The company will then have 18 months in which to complete construction and bring project to production. Silverado must pay an additional US$3 million once the mill has been running for 30 days, with the balance of the US$12 million due six months thereafter.

If the property does not reach production after the 18 months, the purchase can be extended with annual payments of US$500,000 to La Teko.

The deposit contains proven and probable reserves of 822,000 oz. gold contained in 14.5 million grading 0.056 oz. per ton.

Silverado envisions a 1,000-Ton-per-day open-pit operation using conventional gravity and carbon-in-pulp milling. The operation should produce more than 80,000 oz. annually.

Ryan Lode stands adjacent to Silverado’s 20-sq.-Mile Ester Dome property, and the company believes the deposit is an important addition to its resources there.