Description of the Moss Mine
Patriot owns a 3% net smelter royalty in the Moss Mine project, one of the most significant gold/silver deposits in Arizona history. The Moss Mine Project is located within the historic Oatman District, 10 miles east of Bullhead City, Arizona and approximately 70 miles southeast of Las Vegas, Nevada. Patriot acquired a 100% interest in the Moss Mine in 2004, and subsequently carried out extensive exploration, drilling and metallurgical work. Between 2004 and 2010 Patriot dramatically increased the known resource and established its metallurgical characteristics.
Patriot then entered into an option agreement with Northern Vertex in March 2011 to advance the project by conducting an exploration and development program, leading to commercial production if certain milestones and requirements were achieved. Northern Vertex met the required expenditures, successfully carried out pilot production, and produced a feasibility study, fulfilling the option agreement terms and earning an undivided 70% interest in the Moss Mine. Subsequently, Patriot negotiated an agreement with Northern Vertex giving them full ownership of the mine in exchange for a 3% net smelter royalty and a cash/share consideration.
In November 2017, Northern Vertex released an updated Preliminary Economic Assessment for the Moss Mine. In the first quarter of 2018, the Moss Mine entered commercial production, leading to the commencement of cash flow to Patriot as a result of its 3% net smelter royalty.