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Summit Project
The Summit Project consists of 315 mineral claims, covering approximately 5,950 acres (9.3 square miles), along the northern and eastern flanks of the Pequop Range, fourteen miles east of Wells, Nevada. The claims are staked in an area of Nevada known as the "checkerboard" where every other square mile is private, therefore Columbus Gold's claims cover the intervening federal lands, between the private parcels.
Subject to third party net smelter royalties, the Summit Project is 100% owned by Columbus and has been optioned to Agnico Eagle (USA) Limited, a US subsidiary of Agnico Eagle Mines Limited. Agnico can earn a 51% interest in Summit by making staged cash payments totaling US$150,000 to Columbus over three years and by incurring exploration expenditures totaling US$3 million over a five year period. Once Agnico has earned a 51% interest, it may elect to earn an additional 19% (for a total interest of 70%) by preparing and delivering to Columbus, a feasibility study for the development of a mine at Summit. In the event of a decision to develop a mine, Columbus may require Agnico to arrange financing for Columbus Gold's proportionate share of the capital required for the development of the mine in which case Agnico will earn a further 5% interest in Summit for a total interest of 75%.
The claims were staked by Columbus in response to the November 2005 announcement of the discovery drill holes of good grade, Carlin-type gold mineralization by AuEx Ventures, Inc., at their nearby Long Canyon Property. Columbus Gold's claims are positioned to cover either outcropping Lower Paleozoic sedimentary rocks similar to the host rock at Long Canyon, or shallow pediment along strike of structures trending to the Long Canyon area.
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