The Hardshell Skarn Project is located approximately 75 kilometers southeast of Tucson, Arizona within the Patagonia Mountains and adjacent to AZ Minerals' advancing Hermosa project. The Project is comprised of 16 unpatented federal lode mining claims totaling approximately 279 acres and lies between the Sunnyside porphyry copper system (Regal Resources Inc.) to the west, the Hermosa project (AZ Minerals) to the east, and the historic Trench mine to the north. EMX has targeted base and precious metals mineralization hosted in skarn and replacement bodies within a series of Paleozoic limestones. These carbonate rocks, as well as skarn mineralization, were intersected by Asarco in deep historic drilling (depths from 1,256-1,491 m) adjacent to the Sunnyside porphyry center and to the northwest of the Project boundary. From west to east, the target rocks step to shallower levels across the EMX land position by a series of north trending faults and are less than 100 meters below the surface immediately east of the Project. It is anticipated that AZ Minerals will incorporate the Hardshell Skarn property into their ongoing Hermosa project exploration programs.
EMX has entered into an Exploration and Option Agreement through its wholly owned subsidiary Bronco Creek Exploration, Inc. for the Hardshell Skarn project with Arizona Minerals Inc., a subsidiary of Arizona Mining Inc. (TSX: AZ). Pursuant to the Agreement, AZ Minerals can earn a 100% interest in the Project by making cash payments totaling $85,000 (all amounts are USD). Upon exercise of the option EMX will retains a 2% NSR royalty and annual advanced royalty payments. The EMX royalty is not capped and not subject to buy-down.
The adjacent properties provide context for the Hardshell Skarn project, which occurs in a similar geologic setting. However, this is not necessarily indicative that the Project hosts similar mineralization.