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The Island Mountain property comprises 53 claims and is located approximately ten miles north of Gateway's Big Springs property. Geochemical rock and soil surveys have established a number of large gold anomalies where drilling by Gateway and previous operators has intercepted gold mineralization. Significant areas within the anomalous zones are untested by drilling and provide excellent opportunities for the discovery of further mineralization.
Gateway Gold Corp. has entered into an Option Agreement on the Company's Island Mountain property in Elko County, northeastern Nevada. The Company has agreed to grant Arnevut Resources, Inc., a private Colorado company an option to acquire an initial 51% interest in the Island Mountain property with further options to increase its interest to a 75% interest in the property.
In order to maintain the Option in good standing and earn a 51% interest in the Property, Arnevut must make certain cash payments and incur certain property expenditures. Arnevut has the option to earn an additional 14% interest in the Property by spending an additional USD$2,500,000 within 3 years. Upon earning a 65% interest, Arnevut has the option to earn a further 10% interest in the Property by completing a feasibility study on the Property before November 16, 2014.
For further details please see the Company News Release January 8, 2008.
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