Gold Bull executes LOI to acquire Coyote Mine project, Utah

Photo: Gold Bull Resources

Gold Bull Resources Corp. announces it has executed a Letter of Intent (“LOI”) to acquire 100% of the Coyote Mine project from private company Desert Mountain Gold LLC. Coyote is located in Juab County, Western Utah, USA and is considered prospective for gold and silver mineralisation.

The Project comprises 83 lode mining claims for approximately 1,715 acres and two State Metalliferous Mineral Leases for approximately 1,370 acres for a total of 3,085 acres.

Gold Bull has the option to acquire 100% of the project by making an ongoing annual payment of US$50,000 which will convert to a 3% net smelter royalty (NSR) in favour of Desert Mountain Gold LLC upon production commencing. Gold Bull will have the election to reduce the net smelter royalty by paying $1,000,000 per 1% NSR reduction, to reduce up to 2% of the NSR. Completion of a definitive agreement is subject to Gold Bull completing detailed due diligence of the Coyote Project.

Gold Bull Chairman, Craig Parry commented, “We view Western Utah as highly prospective yet underexplored region. Utah is a mining friendly state and it is a jurisdiction that Gold Bull will be taking a closer look at. We look forward to learning more about the Coyote project as the historical numbers are extremely encouraging.”

The area of interest is located in the Great Basin portion of the Basin and Range Province of the western United States. The general landscape of the area is dominated by north-south trending fault-block mountain ranges separated by intervening sediment-filled basins or valleys.

There is a small mine on the property called the Coyote Mine with small production and reported 1000 ounces silver.  

Two of the historical drill holes contain high gold values, CK-14 and CK-23.