TORONTO, July 16, 2018 (GLOBE NEWSWIRE) — Pedro Resources Ltd. (“Pedro” or the “Company”) (TSXV:PED.H) is pleased to announce the acquisition of the Graysill Mine property (“Graysill”) in the Colorado Plateau of Colorado, USA. The Graysill Mine property consists of 40 unpatented lode mining claims with a total area of 800 acres. Historic mining took place on the project through the 1940’s and 1950’s with total production of 32,000 tons of mineralized material grading 2.41% V2O5 and 0.09% U3O8. Pedro is working to update the existing 2014 NI 43-101 report on the Graysill property.
This is a significant acquisition which is a reactivation for the company and focusing in the active battery metals space. The company will be seeking listing on TSXV as a Tier 2 issuer and that the acquisition, financing and reactivation remain subject to the approval of the Exchange. There are no changes to companies’ Board of Directors and Management by this transaction.
The Board of Directors intends to announce a capital raise of $750,000 in connection with this acquisition to pursue the acquisition costs and exploration program. A news release will be issued at a later date disclosing the terms of the financing.
- The Graysill property is located approximately 15 miles southwest of Silverton, Colorado. The Property is road accessible by a three season gravel and dirt road which is maintained by the Colorado Forest Service during the summer months.
- Mineralization at Graysill consists of tabular, stratabound vanadium-uranium hosted in the Jurassic age Entrada Sandstone. The Entrada formation outcrops on the south end of the property and dips under cover approximately 10° to the north. Mineralization in localized and strongest in the upper Entrada near the contact with an overlying limestone unit.
- Historic mining took place on the property sporadically from the late 1940’s through the early 1950’s. Approximately 32,000 short tons of mineralized materials were mined with a reported grade of 2.41% V2O5 and 0.09% U3O8. The 32,000 short tons of mineralized material yielded approximately 1.5 million pounds of V2O5 and 52,000 pounds of U3O8.
The Graysill property, comprised of 40 unpatented lode mining claims covering a total area of 800 acres, is located approximately 15 miles southwest of Silverton, Colorado. The property is accessed via an unpaved United States Forest Service Road 578 that takes off eastward from Colorado State Highway 145.
The Graysill deposit was discovered in 1945 through exploratory drilling by the Vanadium Corporation of America. Production began in 1947 and ceased by 1959, producing 32,000 short tons of 2.41% V2O5 and 0.09% U3O8. Follow up drilling of 33 diamond drillholes was completed by Atlas Minerals Company in the late 1970’s through to the early 1980’s. The property was purchased by Pacific Metals Corp., who completed three seasons of exploration on the property from 2012 to 2014, culminating with a NI 43-101 technical report.
As a verification exercise for the 2014 NI 43-101 technical report, a grab sample was taken from an area proximal to a historic adit. The sample returned values of 1.36% V2O5 and 0.098% U3O8. The sample was prepared at the Hazen Research Laboratory in Golden, Colorado, USA. The sample was crushed to produce a -100 mesh pulp. A 0.50 gram sample was analyzed for uranium by ASTM modified standard analysis method D-2907-97. A 0.25 gram representative split was analyzed by standard ICP methods for vanadium. Selected samples are not representative of the mineralization hosted on the property.
The Graysill vanadium-uranium property is located in the Entrada Sandstone along a sinuous trend extending in a north-south direction for over 100 miles. The trend coincides with a major structural feature representing a transitional zone between the Colorado Plateau and the Southern Rocky Mountain physiographic provinces.
The local stratigraphy consists of: the Brushy Basin Shale Member of the Upper Jurassic Morrison Formation, consisting of mudstones, sandstones, and minor conglomeratic sandstone; the Salt Wash Sandstone Member of the Upper Jurassic Morrison Formation, ranging in thickness from 160-450 feet and composed of mudstone and interbedded sandstone; the Upper Jurassic Wanakah Formation, reaching a thickness up to 240 feet and composed of fine sandstone overlain by siltstone and silty limestone; the Pony Express Limestone Member of the Upper Jurassic Wanakah Formation, with thickness of 20-30 feet and consisting of thinly bedded limestone; the Upper Jurassic Entrada Sandstone, with thickness of 80-110 feet and composed of fine grained sandstone and which hosts the vanadium-uranium deposit of the Graysill Mine; and the Upper Triassic Dolores Formation, which is nearly 600 feet thick and composed of interbedded sandstone, siltstone, conglomerate, and minor limestone.
Vanadium-uranium deposition is restricted to the upper portion of the Entrada Sandstone. The mineralized zone is a 1 to 4 feet thick interval of dark grey to black zone of organic material within the sandstone. A low-relief erosional unconformity separates the Entrada from the overlying arkosic Upper Triassic Dolores Formation.
The purchase will be accomplished by Pedro acquiring all of the issued and outstanding shares Colorado Vanadium Corp. a private company, which owns 100% interest in the Graysill property, in exchange for the issuance, pro-rata, of 11,500,000 common shares at a price of $0.20 per share and 5,750,000 consideration warrants of Pedro to the existing shareholders of Colorado Vanadium Corp. The Consideration Warrants shall entitle the holder to acquire one common share of Pedro at an exercise price of $0.30 per share for a period of 24 months following the closing date. In addition, Pedro will pay the vendors $450,000 at the closing date and a payment on the first anniversary of the closing date of a further $450,000. The shareholders of Colorado Vanadium Corp. will receive the benefit of a 2.5% net smelter royalty, of which 1.5% may be purchased by Pedro at any time on or before the seventh anniversary of the closing date, in consideration of a $1,500,000 cash payment. There is a $50,000 fee for the acquisition payable to a consultant. This is an arm’s length transaction and the transaction will not create any new insiders of the corporation.
Graysill Uranium/Vanadium Project, Dolores and San Juan Counties, Colorado USA, NI 43-101 Technical Report, Prepared for Pacific Metals Corp by Jim Guilinger Consulting Geologist of World Industrial Minerals, March 31, 2014.
Kelly Malcolm, P. Geo, Technical Advisor to Pedro Resources Ltd., is the qualified person responsible for the technical content of this release and consents to its dissemination.
About Pedro Resources Ltd.
Pedro Resources Ltd. is a Canadian exploration company listed on the TSX-Venture (TSX-V:PED.H) focused on vanadium exploration and development.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
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SOURCE Pedro Resources Ltd.