Silver Dollar Resources Inc. (CSE: SLV, OTCQX: SLVDF, FSE: 4YW) has taken a major step forward in expanding its footprint in one of North America’s richest silver districts by exercising its option to acquire a 75% interest in the Government Gulch portion of the Ranger-Page Project in Shoshone County, Idaho. This move solidifies the company’s control over a key asset within the historic Silver Valley mining region, a district famed for its prolific silver, lead, and zinc production.
The Government Gulch option was secured under a series of agreements culminating in recent amendments earlier in the month. As part of the exercise, Silver Dollar paid the optionor $250,000 and invested over $1.21 million in exploration work on the property. This investment underscores the company’s commitment to advancing the project toward development and potentially significant resource expansion.
Silver Dollar retains the right to acquire the remaining 25% interest in Government Gulch through good faith negotiations. Should the parties fail to agree on a price, Silver Dollar may opt for one of several predetermined purchase options, including a cash payment of $2.25 million or a combination of cash and shares, or solely shares based on the company’s recent trading price. If the second option is not exercised by the end of 2025, the project will transition into a joint venture with Silver Dollar serving as operator. The agreement includes dilution provisions designed to protect the interests of contributing parties, with the added feature that if any participant’s stake falls below 10%, the other party can acquire it, granting the original holder a 2.0% net smelter returns royalty. Silver Dollar also has the right to buy back half of this royalty for $1 million.
In linking the Government Gulch agreements with its broader Ranger-Page Project, Silver Dollar will owe a 0.5% net smelter returns royalty to Silver Valley Metals Corp. The overall project, which includes six historic mining sites with considerable infrastructure advantages, is strategically located just south of Interstate 90 near Smelterville, Idaho. This area benefits from year-round access to power, water, and a locally experienced mining workforce. Exploration has focused on targets identified both near the historic underground mines and extensions indicated by geophysical surveys and surface geochemical sampling.
The Ranger-Page land package provides a rare opportunity to consolidate the western end of this renowned mining corridor, one that has produced substantial tonnages of silver, lead, and zinc since the late 19th century. With Silver Dollar holding leases and option agreements over key parcels including Government Gulch and the Page Mine, the company is positioned to advance a drill-ready project within a jurisdiction rated highly for its mining-friendliness, ranking first globally in policy perception as recently as 2020.
Silver Dollar Resources has built its portfolio around projects in established mining regions in North America, with a focus on silver and precious metals. Their strategy emphasizes advancing projects with strong exploration upside in jurisdictions that support mineral development, leveraging a skilled management team and backing from prominent investors such as Eric Sprott.
The exercise of the Government Gulch option demonstrates Silver Dollar’s intent to move swiftly on the Ranger-Page Project, which already has received all necessary exploration permits and approvals from Idaho’s regulatory agencies. This enables the company to advance drilling and other exploration activities that aim to expand known mineralization and identify new zones of high-grade silver and associated metals.
With the combination of historic production, strategic location, and a detailed technical framework developed through systematic exploration, Silver Dollar’s control over Government Gulch represents a significant milestone. The company’s next steps will likely focus on executing the planned exploration programs and potentially negotiating the acquisition of the remaining minority interest to consolidate full ownership.
Overall, this acquisition marks a clear advancement for Silver Dollar Resources in building a critical silver-focused mineral portfolio, signaling focused growth and operational execution in a sought-after mining region.
