Rover Intends to Option Round Mountain Look Alike in Nevada

Bob Moriarty
Archives
Apr 26, 2019

The Round Mountain Gold Mine is on the west side of the Toquima caldera in south-central Nevada. What Rover Metals (Rover) (ROVR-V) calls the Toquima precious metals property is on the other side of the caldera. On April 10 Rover announced a Letter of Intent to purchase all of the issued and outstanding shares of Centennial Mining, owner of the Toquima gold and silver project. Terms of the LOI call for Rover to issue 40 million shares for the purchase of a 100% interest in Centennial. The 40 million shares will be escrowed for a 12-month minimum period.

The intended purchase by Rover accomplishes two objectives. (1) it offsets other NWT projects held and advanced by Rover. The NWT projects cost more and are seasonal in nature and (2) the company wanted a US based project in a mining friendly jurisdiction for potential American investors to compliment its recent OTC listing.

Centennial Mining is a private subsidiary of North American Silver that has about 100 different investors. NAS drafted a 43-101 on the Toquima property in 2015 based on drill data from Echo Bay (the same exploration company that discovered Round Mountain) done in the 1980s. The draft NAS 43-101 showed 31 million tons of rock containing 29 million ounces of silver and 239,000 ounces of gold but Rover is using a far more conservative number of 9 million ounces originally reported by Echo Bay in 1988 as a historic resource. The NAS numbers suggest a lot of blue sky potential for the property.

The property is in a nest of five calderas in the area hosting 24 million ounces of gold and 89 million ounces of silver. Structurally the project is similar to nearby Round Mountain holding 16 million ounces of gold and 15 million ounces of silver.

The TSX halted Rover’s stock and their shares are likely to remain halted for about six weeks in order for the TSX to complete their examination of the paperwork and to complete due diligence. Meanwhile Rover is in the midst of a minor $1.25 million private placement with a unit consisting of hard dollar shares at $.06 with a full warrant at $.12 for five years. I don’t think I will surprise any potential investors by saying the Canadian capital markets remain weak for companies with a market cap below $10 million.

Rover is an advertiser and I like the company and the prospects a lot. Since I bought shares in the open market and I am participating in the PP, naturally I am biased but with a market cap of just over $3 million, I just don’t see a lot of risk. The company’s Cabin Lake and Up Town Gold projects are surely worth that much.

Please do your own due diligence.

###

Bob Moriarty
President: 321gold
Archives

321gold Ltd