WINDERMERE, FL, Dec. 11, 2020 (GLOBE NEWSWIRE) — via NewMediaWire — Palayan Resources, Inc. (the “Company” or “PLYN”) (OTCMarkets: PLYN), a publicly traded, fully reporting emerging growth company, is pleased to discuss the Silver Bow Property that is the focus of the recently executed Letter of Intent with Provenance Gold Corp. (“Provenance”) (CSE:PAU) (FSE:3PG). Provenance holds the right to acquire 102 lode mineral claims, known as the Silver Bow Claims, and also controls the right to one (1) patented mining claim, identified as the Blue Horse Claim (the “Claim”) (collectively, the “Project”), all of which are located in Nye County in the State of Nevada and are subject to certain net smelter returns royalty. The Project consists of approximately 2,024 acres.
James Jenkins, CEO of Palayan, stated that “we are in daily communication with Provenance as we work towards completing the due diligence phase quickly and getting the definitive agreement drafted and executed. We anticipate this being done within the timeline set forth in our letter agreement with Provenance.”
The Blue Horse patented claim will be the initial target of Provenance’s exploration effort. It is the first of seven exploration targets that have been identified on the Project, which are discussed below in more detail. Historically, miners produced extremely high-grade gold ores from veins on this claim. Provenance has independently confirmed this with mostly outcrop samples that returned 293 g/t Au, 12.4 g/t Au and 10.2 g/t Au.
A second target will be the newly identified Breccia Ridge target which is defined by rock chip sampling returning gold assays ranging from 0.1 g/t Au to 3.7 g/t Au over an extensive area. The North Dome target, close to the Breccia Ridge target, consists of a drill tested zone adjacent to untested epithermal banded quartz veins. These two related targets have the potential to produce a large tonnage of open-pit grade gold above and peripheral to boiling zone level. The boiling zone has good potential for high grade Au-Ag mineralization in quartz veins.
Other targets previously identified by Provenance include the Silver Glance, located within the project just north of the Blue Horse claim. It also has quartz veins and breccias that seem to trend in an easterly direction along a major shear zone. Past sampling by Provenance has returned multiple mineralized samples including an exposure that assayed 3 g/t Au and 68 g/t Ag.
An area called the Spaghetti Bowl is located within the project northwest of the old Silverbow townsite. Considerable past work was done there including the drilling of about 18 vertical conventional rotary holes. No assays exist but considering that the three (3) mineralized zones are also vertical, it is Provenance’s intention to drill angled holes across the mineralized zone. Provenance work in this area has identified these mineralized zones as hydrothermal breccias suggesting that boiling took place at depth and the gold and silver grades found on the surface will increase with depth toward the boiling zone. A reported angle hole in the area that was drilled at a later date returned 45 feet of 0.4 g/t Au and 109 g/t Ag.
The last two lower priority targets include the Mill Site area where brecciated rock with quartz veinlets had been previously mined and the South Dome area which appears to be upper-level alteration over a large hydrothermal system. Geologic work is ongoing by Provenance on these to better define the targets.
“The historical work on the Project and its drill ready nature could provide Palayan and its shareholders with a better than anticipated mining property. For this reason, we are working diligently to complete this transaction,” concluded Jenkins.
As previously stated, the parties continue to exchange due diligence and the transaction remains subject to the execution of a definitive agreement. Additional updates will be provided as they become available.
About Palayan Resources, Inc.
Palayan Resources, Inc. is an emerging growth company. The Company is focused on operating, developing, exploring and acquiring high-quality projects worldwide. Headquartered in Windermere, FL, Palayan Resources is aiming to build a portfolio of companies that generate revenue and profitability.
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Cautionary Note to Investors
The United States Securities and Exchange Commission (“SEC”) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce and that are compliant with SEC Industry Guide 7. Investors are cautioned not to assume that any part or all of the proposed project in the Silver Bow Property as contemplated in the letter agreement contains any mineral deposits that will ever be converted into resources or that any inferred mineral resource or measured and indicated resources exists or is economically or legally mineable. The proposed project does not contain any known proven or probable ore reserves or mineral resource compliant with SEC Industry Guide 7 reporting standards.
This news release contains “forward-looking statements” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”, or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, securing necessary financing, the future of the U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations pertaining to the mining and exploration of mineral properties. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. The Company has no mineral resource or reserve estimate in any project at this time and may not have sufficient funding to thoroughly explore, drill or develop any mineral rights. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Source: Palayan Resources, Inc.