QX Metals : Gold Bull Executes Purchase Agreement to Acquire Sandman Project

ON-TREND, DRILL-READY NEVADAN GOLD ASSET WITH DEFINED RESOURCES AND EXPANSION POTENTIAL

VANCOUVER, British Columbia, Oct. 12, 2020 (GLOBE NEWSWIRE) — Gold Bull Resources Corp. (TSX-V: GBRC) (“Gold Bull” or the “Company”) is pleased to announce it has executed a Purchase and Sales Agreement to acquire 100% of the Sandman Gold Project (“Sandman” or the “Project”) from Newmont for USD $4 million in cash.

HIGHLIGHTS:

• Proven gold mineralization comprising a total Resource of 309,900 oz Au (comprising of Measured & Indicated Resource of 271,900 oz Au plus an Inferred Resource of 38,000 oz Au as per 2007, 43-101 Resource Estimate)
• Located on renowned gold trend in #1 Mining Jurisdiction in the World (~24km from Sleeper mine that produced 1.7M oz Au @ 7 g/t average head grade, 1986-1996)
• Extensive & consolidated land package (117km² Sale Boundary)
• Expansion potential with significant drilling and exploration conducted post-resource estimate & massive gaps in exploration under cover
• Permits In-Hand from BLM and NDEP across land package in mining friendly jurisdiction with no known environmental sensitives

PROPERTY DETAILS

Sandman is located in Townships 36 and 37 North, Ranges 35 and 36 East, Mount Diablo Meridian, Humboldt County, Nevada, USA. The property is situated south of the Slumbering Hills and west of the Tenmile Hills, circa 24 km northwest of the town of Winnemucca, Nevada. The property lies 23 km south of the successful Sleeper gold mine¹ which historically produced 1.7M oz Au with M&I Resources in excess of ~3M oz Au² (Figure 1). Sandman is accessed by driving west from the town of Winnemucca on Jungo Road for 15 km, and then an additional eight km to the north on dirt roads that lie largely within the property boundaries.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8490bc1a-cab4-4e08-95b6-7ce8a562ebee

Figure 1. General Location map

The Sandman property (117 km²; Sale Boundary; Figure 2) is located on checkerboard mix of public and private lands. The project consists of 445 unpatented lode mining claims and ~6 km² (1,480 acres) of surface ownership. The existing net smelter return production royalty obligations will transfer from Newmont to Gold Bull.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/10a596b4-4fc1-4496-b956-c0e917df4225

Figure 2. Location map indicating sale boundary via the white polygon.

Significant gold mineralization at Sandman has been identified at the Southeast Pediment, Silica Ridge, North Hill, and Abel Knoll deposits (Figure 3) for which NI 43-101 mineral resources have been estimated (see section on Mineral Resource Estimate).

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/31a3c9eb-fb31-4086-a034-df9a630be430

Figure 3. Sandman project area with underlying geology and main prospects

HISTORY

No significant historic mining activities have taken place within the Sandman project limits. Modern exploration of the Sandman project began in 1987 when Kennecott Exploration Company (“Kennecott”) discovered gold in outcrop at North Hill. Kennecott and Santa Fe Pacific Gold Corporation (“Santa Fe”) formed a joint venture and conducted geologic mapping, surface sampling, geophysical surveying, trenching, drilling, and metallurgical testing through 1994. The joint venture drilled 275 reverse-circulation (“RC”) holes and three diamond-drill core (“core”) holes in this period, as well as 4,000 shallow auger holes to sample bedrock beneath the extensive sand cover. A block of claims staked by U.S. Borax was acquired by the joint venture in 1989. U.S. Borax had drilled 37 RC holes within these claims. The work of these companies led to the discoveries and partial definitions of the Southeast Pediment, Silica Ridge, and North Hill gold deposits, as well as the identification of the Adularia Hill, Basalt Hills, Basalt Fields, and Abel Flat exploration target areas (Figure 3).

Kennecott and Santa Fe terminated their joint venture and conveyed their individual holdings at Sandman to Western States Mining (“WSMC”) in 1997. WSMC and NewWest Gold Corporation subsequently conducted extensive exploration of the property, including rock chip and soil sampling, geophysical surveying, trenching, drilling, and metallurgical testing. WSMC also excavated a test pit at Southeast Pediment measuring 200-ft long by 50-ft wide by 15-ft deep. A 1,067-ton bulk sample of relatively high-grade mineralization was mined and shipped to the Twin Creeks mine of Newmont for milling and leaching.

In 2005 NewWest acquired the property from WSMC and employed Mine Development Associates to prepare a…