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Over the past three years Gunpoint has increased the NI 43-101 Measured + Indicated Resource for the Talapoosa gold and silver project by approximately 45%, to a total of 1 million ounces of gold and 13.6 million ounces of silver at an average grade of 1.11g/t gold and 15g/t silver (at 0.45g/t Cutoff).
Gunpoint has been conducting metallurgical work to evaluate the heap leach recoveries from both the oxidized and unoxidized material in the deposit. Preliminary test results indicate a finer grind process (200 mesh) improves the recoveries and that some of the transitional unoxidized material could be amenable to a heap leach treatment.
The exploration and technical work has improved the economic viability of Talapoosa and attracted industry interest in the project. Gunpoint has signed an option agreement ("Option") to sell Talapoosa to Timberline Resources Corporation (NYSE MKT: TLR; TSX-V :TBR). Timberline has agreed to pay Gunpoint US$300,000 and issue 2 million common shares for the Option. The Option is exercisable within 30 months from March 12, 2015 at which time Timberline will pay Gunpoint US$10 million. Once the Option is exercised, Gunpoint will receive an additional US$10 million if the price of gold averages US$1600/oz for 90 consecutive days.