X-Cal sees new potential at Sleeper

Vancouver — If ever a mineral project matched its name, it’s the Sleeper gold property that X-Cal Resources (XCL-T, XCASF-O) has been evaluating and exploring for much of the past decade. A major discovery has so far proved elusive, but with Nevada gold back in favour with investors, the junior hopes to carry out another round of exploration that could bring the dormant project back to life.

As part of that effort, X-Cal released a National Instrument 43-101 technical report that incorporates some fresh geological concepts about the property’s overall potential. The company’s “Sleeper review panel,” assembled to guide ongoing exploration, includes some of the best geological minds involved in Nevada exploration, including Richard Sillitoe, Jeffrey Hedinquist, and Ken Snyder and Larry Kornze of Midas and Betze (deposits) fame, respectively.

The Sleeper property covers a historic open pit operated by Amax Gold that produced 1.68 million oz. gold and 2.3 million oz. silver from 1986 until 1996. Combined with surrounding exploration lands, the project covers about 77 sq. km of prospective terrain. The newly released technical report focuses on five priority targets found in three parallel north-northeast-trending structural corridors.

The western fault trend hosts three targets named Southwest target, West Graben, and Northwest target. The central structural zone hosts the historic Sleeper mine and the recently defined Sleeper South target, which is speculated to be a down-dropped portion of the Sleeper trend. The third structural zone is the Range Front target, which, in turn, contains a number of drill targets over 5.5 km of strike length.

The geological team has defined each of these priority areas with multi-disciplinary techniques, including detailed three-dimensional modelling. The next step calls for each of the priority targets to be tested by fences or fans of drill holes. None of the five new targets have been previously tested by drilling campaigns.

At this stage, the project is still a joint venture with New Sleeper Gold (NWS-V, NWSJF-O), however New Sleeper agreed earlier this year to sell its 50% interest to X-Cal, in exchange for $5 million and 10 million of X-Cal’s common shares.

The closing of the transaction is subject to regulatory approvals and X-Cal completing the necessary financing to complete the balance ($4.85 million) of the acquisition. If X-Cal is unable to complete the transaction by May 16 of this year, the agreement will be terminated and each party will retain a 50% interest. If the deal is concluded as proposed, New Sleeper would become the largest individual shareholder of X-Cal Resources.