On December 1, 2006, the Company entered into an option agreement to earn a 100% interest in the Silver Crown claim which adjoins the Red Cliff property to the north. The Company could earn a 100% interest in the Silver Crown claim by making an aggregate of $1,500,000 in exploration expenditures on the property, by making cash payments totalling $100,000 and by issuing 60,000 common shares. The Silver Crown property is subject to a 2% net smelter return royalty in favour of the optionors.
The Company has completed 9 drill holes totalling over 4,500 ft. on the Silver Crown property. Total exploration and development costs incurred on the Silver Crown property to October 31, 2017 are $569,047. The Company received B.C. Mining Tax credits for 2007 and 2008 totalling $70,251 for exploration and development work done on the Silver Crown property in those years.
The Company has made all the cash and common share option payments required under the option agreement. In 2012, the Company paid an extension fee of $10,000 to extend the term of the exploration expenditures required to November 30, 2012. The Company and the optionors have agreed to further extend the exploration expenditures date to December 31, 2017. The Company is currently negotiating an extension.
The Company carried out a program of geochemical sampling on the Silver Crown claim adjacent to and north of the Montrose zone at Red Cliff. This soil and silt sampling program was completed in an area of extensive talus and soil cover to further define possible extensions to the Montrose zone at Red Cliff.