UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 26, 2010
FIRST AMERICAN SILVER CORP.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation)
333-157515
(Commission File Number)
98-0579157
(IRS Employer Identification No.)
10900 N.E. 4TH STREET, SUITE 2300, BELLEVUE, WASHINGTON, USA, 98004
(Address of principal executive offices and Zip Code)
(425) 698-2030
Registrant's telephone number, including area code
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
ITEM 2.01 COMPLETION OF ACQUISITION OF ASSETS
On November 26, 2010 we entered into three agreements with All American
Resources LLC in regards to the acquisition of certain property interests. The
interests that we have acquired are as follows:
* An option to acquire a 100% interest in a mineral exploration property
called the "Eagan Canyon" property in White Pine County, Nevada;
* An option to acquire a 100% interest in a mineral exploration property
called the "Muncy Creek" property in White Pine County, Nevada; and
* An option to acquire a 100% interest in a mineral exploration property
called the "Mountain City" property in Elko County, Nevada.
In regards to the above option agreements for the properties, our obligations
for each property consist of:
* Making payments in the aggregate amount of $180,000 in annual periodic
payments ranging from $10,000 to $50,000, to the ninth anniversary of
the option agreement.
* Make certain restricted common stock share issuances to All American
Resources LLC under the terms of the option agreements, periodically
to the ninth anniversary of the agreement (300,000 shares in regards
to each property, with 100,000 shares in the first year and 25,000
shares each year thereafter).
* On or before the tenth anniversary of the option agreement, in
addition to the payments described above, paying to All American
Resources $1,000,000, in which case All American Resources shall
retain a two percent (2%) mineral production royalty (the "Royalty")
OR, paying to All American Resources $2,000,000, in which case All
American Resources shall retain a one percent (1%) Royalty.
MOUNTAIN CITY PROPERTY
The Mountain City Property is located in north-eastern Nevada, northern Elko
County, It is situated about 0.5 miles (0.8 km) north from the town of Mountain
City and ten miles from the border with the state of Idaho in what is known as
the Cope Mining District. These claims are located in Section 36, Township 46
North, Range 53 East. Other historic mining properties are present in the
vicinity including the Rio Tinto copper-gold mine, a historic producer located
one mile (1.6km) to the southeast.
The property consists of three contiguous patented mining claims totalling
approximately 40 acres (16 ha) surrounded by 22 unpatented mining claims
covering 400 acres (162 ha) for a total of 440 acres (178 ha). These fall within
the Humboldt National Forest which is administered by the U.S. Forest Service.
The patented claims are considered private land, whereas the unpatented claims
require an annual maintenance fee and filing with the Bureau of Land Management
as well an annual filing and fee to the county.
The mineralization present within the Mountain City Property consists of silver
and gold-bearing quartz veins hosted in a coarse-grained quartz monzonite
intrusive. Several parallel, northeast trending quartz veins are present within
the property. Several prospect cuts along these veins define the trend of the
veins, and reveal milky, glassy quartz up to 4 feet (1.3m) wide. The veins often
contain coarse sulfide minerals, including pyrite, sphalerite, galena and
chalcopyrite. Past sampling of these veins indicate gold values up to 6.8 ppm
and silver up to 84.9 ounces per ton (opt). The association of anomalous base
metal values with the precious metals indicates a mesothermal vein system. The
vein density will be an important aspect of the property potential. As many of
the veins are covered, the number of veins present will be important to
determine in the evaluation of the economic potential of the property. This can
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be best done by additional trenching and drilling of the veins. A grid soil
sampling survey program was completed over the property but the results of this
are not presently available. These results should aid in the definition of other
precious metal bearing quartz vein not obvious at the surface.
EGAN CANYON PROPERTY
The Egan Canyon Property is located in east-central Nevada approximately 3.5
miles southwest of the small town of Cherry Creek, White Pine County. It is
situated along the steep sided Egan Canyon at elevations up to 7000 feet (2300m)
in Section 14, Township 23 North, Range 62 East. The patented claims are within
the Cherry Creek mining district, at the northern end of the Egan Range . The
surrounding land is federal land administered by the Bureau of Land Management
The property is composed of four contiguous patented mining claims comprising a
total of 68 acres (27.5 ha). There are no unpatented claims associated with
these patents. The mine area is part of the historic Cherry Creek Mining
district where gold in quartz veins were discovered in 1863. A number of large
mine dumps from a series of adits and shafts are present in the Egan Canyon
property. While no outcropping quartz veins are exposed on the talus and debris
covered surface, the large amount of quartz in the mine dumps and float suggest
a north-south trending vein or vein system was developed in the old workings.
Quartz float and dump material show a variety of textures including quartz
stockwork veining. Limited sampling of the dump material and float show gold
values up to 25.4 ppm and silver values to 6.04 ounces per ton. Sparse outcrops
show the vein system likely follows a sheared and foliated contact between a
light-colored felsic intrusive and a darker diorite intrusive. A green shale is
apparently wedged along this contact. High precious metals values in the dump
material with the limited exposures leads to the suggestion that there is
unknown potential for defining a significant resource on the property.
Additional work including soil and ground geophysical surveys may outline
potential targets.
MUNCY CREEK PROPERTY
The Muncy Creek Property is located in east-central Nevada along the east flank
of the Schell Creek Range, in Sections 7 and 8, Township 20 North, Range 66
East, White Pine County. The nearest town is Ely, located roughly 40 miles
line-of sight to the property. The property consists of seven contiguous
patented mining claims covering a total of 110 combined acres (44.5 ha) located
within surrounding Humboldt National Forest.
The Muncy Creek property falls in the Aurum mining district. The Muncy Creek
sub-district which the property is within reportedly produced much of the
high-grade, oxidized lead, zinc and silver ores from deeply oxidized solution
cavities developed in limestone formations from the district. The reported local
association of syenitic dike rocks with skarn mineral development in the
district suggests the oxidized mineralization was likely originally sulfide
replacement mineralization associated with these intrusive bodies. There is not
much in the way of descriptions of the property itself, although a few recent
assays from the mine dumps on the property show high lead, zinc, manganese and
silver values with anomalous copper. These high values are consistent with a
skarn-replacement style of mineralization. With these high silver and base
metals values from the property, further investigation of the property to
determine the nature and extent of the mineralization is warranted.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
10.1 Property Option Agreement with All American Resources LLC dated
November 26, 2010.
10.2 Property Option Agreement with All American Resources LLC dated
November 26, 2010.
10.3 Property Option Agreement with All American Resources LLC dated
November 26, 2010.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST AMERICAN SILVER CORP.
/s/ Robert Suda
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Robert Suda
President
Date: December 20, 2010
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