Pinal Gold Property, Arizona
In June 2006, the Company acquired the Pinal Gold property in Pinal County, Arizona. The property is located about 30 miles north of Tucson.
Gold mineralization on the property is hosted within faulted blocks in well-altered granitic rocks. Previous work by others indicated that this area has the potential to host several near-surface low-grade deposits. The project has no reserves at present and there is no assurance that the project will advance from its present exploration stage. However, the possibility exists of discovering higher grade mineralization in feeder systems, such as the feeder system of the nearby Tiger Mine area. Historical production at that site, prior to 1950, was reportedly about 400,000 ounces of gold.
About 10 years ago, the property had some wide-spaced drilling carried out on it by others. Fischer-Watt will carry out a series of geological surveys on the property prior to designing a closer spaced test drilling program in areas of stronger mineralization. Additionally, the Company is in the process of staking additional claims in the adjacent area.
Fischer-Watt has acquired a 100% interest in the property by having made payments of $15,000 along with the delivery of 100,000 restricted common shares to the vendors. The vendors retain a 2% net smelter return royalty on production from the property. Fischer-Watt will pay an advance royalty of $20,000 on the first anniversary of the agreement and $25,000 each year thereafter until the commencement of production from the property. These advance royalties will be recoupable from the production royalty payments.
