The Sandspit Gold Project consists of five mineral claims totaling 398.66 hectares, situated immediately south of Sandspit, Haida Gwaii, British Columbia.

The project is a prospective epithermal gold exploration project lying along the Sandspit fault approximately 40km south of the Harmony Gold project (see the press release of Taseko Mines Limited dated July 12, 2021). Historical work on the Sandspit Project consists of a number of drill programs totaling approximately 1,350 meters; trenching and geochemical survey; and a geophysical (IP, magnetic & resistivity) survey.

The key terms of the option agreement are that Ranchero may earn a 100% interest in the Sandspit Project by making cash payments to Homegold of $6,000 on signing, an additional $6,000 by the first anniversary date of the Agreement and a remaining $100,000 on the second anniversary date of the Agreement. The Sandspit Project will be subject to a 3% net smelter returns royalty to be granted to Homegold following the exercise of the option with a right for Ranchero to repurchase half of the royalty for the cash payment of $1,500,000. All figures are in Canadian dollars.