Wedoany.com Report-Aug. 22, Silver Dollar Resources has exercised its option to acquire an initial 75% interest in the Government Gulch portion of the Ranger-Page project, located in Shoshone County, Idaho, US. This marks the first option exercised under the terms of the Government Gulch Option and Joint Venture Agreement.

Silver Dollar retains the option to acquire the remaining 25% interest in the Government Gulch property.

In July 2024, Silver Dollar, through its subsidiary, signed an asset purchase agreement with Silver Valley Metals and its subsidiary North Idaho Metals to acquire the rights, title, and interest in the Ranger-Page project assets. The acquisition was completed in August 2024, granting Silver Dollar control over option rights under the Government Gulch Option and Joint Venture Agreement, along with the Page Mine Mineral Rights Lease and Option Agreement.

As part of the Government Gulch Option and Joint Venture Agreement, Silver Dollar made a payment of $250,000 to the optionor and has invested more than $1.21m in exploration expenditures on the property. These commitments secured its 75% interest in the Government Gulch property.

The company also retains the right to acquire the remaining 25% interest, referred to as the second option. This can be achieved either through negotiations or by choosing one of three payment structures: $2.25m in cash, $1m in cash plus $1.25m in shares, or $2.25m in shares. If Silver Dollar does not exercise the second option by 31 December 2025, a joint venture will be created between the parties, with Silver Dollar designated as the operator.

The agreement also outlines dilution provisions designed to protect the interests of all parties involved. Additionally, Silver Dollar has secured the right to buy half of a 2% net smelter returns (NSR) royalty for $1m. Following the exercise of its option, Silver Dollar will grant Silver Valley Metals a 0.5% NSR royalty from the Government Gulch property.

The Ranger-Page project land package lies within the Coeur d’Alene silver district, an area with a long mining history. It covers six historic mines and benefits from access to key infrastructure and an experienced workforce. These advantages provide favorable conditions for ongoing exploration and potential development.

Exploration at the site is targeting historic mine extensions, ground induced polarisation survey anomalies, and mineralisation identified through surface trenching. Additional targets have been identified through soil geochemical data, mapping, and ground induced polarisation survey results. Together, these exploration tools are expected to guide the next stages of work at the project.

Silver Dollar’s option exercise at Government Gulch represents a significant milestone in advancing the Ranger-Page project. By securing a majority interest and maintaining flexibility to expand ownership further, the company is positioned to pursue continued exploration in a historically productive silver district.