The Oakley Project hosts gold-silver, epithermal hot spring-type mineralization at two targets: Blue Hill Creek and Cold Creek, and detachment-related gold-silver mineralization at Matrix Creek. Blue Hill Creek (Technical Report dated August 8, 2016) contains an Inferred Resource of 163,000 ounces Au in 9.97 million tonnes at a grade of 0.51 g/t Au. The Blue Hill Creek resource is hosted in rocks of the Tertiary Salt Lake Formation within a northwest-trending Tertiary graben that is part of a north trending, five-mile-long by one-mile–wide zone of low-sulphidation, hot spring-type gold occurrences along the western margin of the Albion Mountains.
Matrix Creek is located 1.5 km southeast of the Blue Hill Creek resource. The black matrix breccia (“BMB”) mineralization at Matrix Creek is distinctive from the epithermal mineralization at Blue Hill Creek in terms of style, host rock lithology and structural controls, however, both occur within the Tertiary graben setting. The BMB from outcrop section observations is at least 12 metres thick and consists of quartzite fragments in a black to dark-grey matrix of fine-grained quartz and pyrite. The host rocks are part of a lower Paleozoic package of quartzite and limestone that occurs throughout eastern Nevada, western Utah, and southern Idaho.
In March 2020, a definitive option agreement (the "Oakley Agreement") was executed by Centerra Gold Inc. (“Centerra”) to earn up to a 70% interest in the Oakley Property (the “Oakley Project”) in exchange for total exploration expenditures of US$7,000,000 and cash payments of US$550,000 over a 6 year period, the terms of which includes:
- Centerra can earn a 51% interest in Oakley (the “First Option”) by incurring US$4,500,000 in exploration expenditures and by making cash payments of US$250,000 over a three-year period as follows:
- Cash payment of US$75,000 (received) on signing and commitment to spend a minimum of US$500,000 on exploration expenditures in Year One;
- Cash payment of US$75,000 and US$1,500,000 in exploration expenditures in Year Two; and
- Cash payment of US$100,000 and US$2,500,000 in exploration expenditures in Year Three.
Centerra will then have an option to acquire a further 19% of the Oakley Project, for a total of 70% (the “Second Option”), by incurring an additional US$3,000,000 in exploration expenditures and making a cash payment of US$300,000 over three years.
Subsequent to either the First Option or the Second Option, at Centerra’s option, the parties shall form a joint venture and fund expenditures going forward on a pro rata basis. Should Excellons’ interest fall below 10% during the joint venture, that interest will automatically convert to a 2% net smelter return royalty that is not subject to a buyback provision.