The Uncle Sam gold project is a gold target hosted in a similar age of intrusive rocks similar to the geology hosting the Pogo Gold Mine in east central Alaska approximately 60 kilometres to the east of the Uncle Sam project.
Located 75 km southeast of Fairbanks, Alaska. Within the Tintina Gold Belt between the Fort Knox and Pogo gold mines.
Area Regional Geology
- Property is within the Yukon-Tanana Geologic Terrain
- Geology dominated by metamorphic rocks with lesser felsic intrusive rocks
- Extensive northeast- and northwest-trending faults
Third Party Option
On 27 July 2015, a mineral lease and purchase agreement was finalized between PolarX and Great American Minerals Exploration Inc. (“GAME”), pursuant to which GAME will lease the Uncle Sam Project for up to 10 years with an option to purchase the Project outright at any time during the lease period. Details of the transaction are as follows:
- GAME has paid an upfront deposit of US$30,000 to undertake exploration and development activities on the Uncle Sam Project; $25,000 of which constitutes the first lease payment;
- GAME will thereafter pay further annual lease payments of US$25,000;
- All property holding costs will be paid by GAME including annual rents, permitting costs and all other costs associated with exploration and development activities;
- During the term of the Agreement, GAME will have an option (the “Option”) to purchase a 100% interest in the Uncle Sam Project by:
- paying an exercise price of US$500k in the event the Option is exercised at any time prior to the 5th anniversary of the Agreement;
- paying an exercise price of US$750k in the event the Option is exercised at any time following the 5th anniversary and expiring on the date of the 10th anniversary of the Agreement;
- prior annual lease payments will be credited to the exercise price payable; and
- subject to GAME exercising the Option, PolarX will be granted a 1% net smelter return royalty on future production and GAME will assume responsibility for PolarX’s other third party obligations in relation to the Uncle Sam Project.