DRILLING CONTRACT
Exhibit
10.1
Made
this
24th
day of
June, 2008
| Between |
Silver
Reserve Corp.
a
Delaware corporation
0000
Xxxxxxxx Xxx, Xxxxx 000 X
Xxxx
Xxxxxx 00000
Phone
000-000-0000
Fax 000-000-0000
(herein
called “Silver Reserve”)
|
| And | Xxxxxxxxxxxx
Drilling, Inc.
a
Nevada corporation
000
Xxx Xxxxxx
Xxx
Xxxxxx 00000
Phone
000-000-0000
Fax 000-000-0000
(herein
called “Xxxxxxxxxxxx”)
|
Whereas
Xxxxxxxxxxxx
provides drilling services to the exploration and mining industry;
and
Whereas
Silver
Reserve wishes to employ the services of Christiansen to carry out a substantial
amount of drilling on it projects in Nevada;
Now
Therefore
based on
the terms and conditions set out herein the parties hereto agree as
follows;
Xxxxxxxxxxxx
will provide its drilling services as directed by Silver Reserve on the
following terms and conditions;
| 1. |
Reverse
Circulation (RC) Drilling will be conducted @ an hourly rate of $500.00
per hr. with a 3-man crew. Sampling will be taken as directed by
the
on-site Geologist.
|
| 2. |
Equipment
Mobilization & Demobilization.
|
| a. |
SD-40
Reverse Circulation Rig @ $150.00 per
hr.
|
| b. |
Water
& support trucks mobilization, demobilization & rental will be
charged at a rate of $150.00 per hour while in use
only.
|
| 3. |
Grading
& site preparation by a Caterpillar D7-G Tractor will be charged at
the rate of $150.00 per hour.
|
| a. |
Caterpillar
tractor transportation to the project site & return will be charged at
a rate of $150.00 per hour, which will include a “pilot”
car.
|
| 4. |
Drilling
materials such as cement, casing, bits, wiper rubbers, drilling liquids,
and sealers will be billed to the Operator at Xxxxxxxxxxxx Drilling,
Inc.
Invoice cost plus 10%.
|
| 5. |
Hole
Plugging(s) per Nevada State Regulation: Setting casing & cementing,
if required, will be charged at a rate of $350.00 per hour plus
materials.
|
| 6. |
Drilling
crew, cat operator, & on-site supervisors, travel time to & from
the project site will be charged @ the rate of .75 cents per mile/per
man.
|
| 7. |
Per
Diem for drilling crew, cat operator, & on-site supervisors will be
charged at the rate of $40.00 per day/per man plus motel
accommodations.
|
| 8. |
Operator
agrees to reimburse Contractor at 50% of cost for drill steel, hammer
& interchange in the event that they are damaged or cannot be
recovered during the drilling operations. Operator agrees to reimburse
Contractor at invoice cost less 15% if Operator requires Contractor
to
continue drilling should hole conditions jeopardize loss of drilling
tools. The daily “Drill Log” must be signed by the Operator’s
Representative.
|
| 9. |
Drill
Rig standby with crew at the request of Operator will be charged
at the
rate of $250.00 per hour based on an 8-hour
day.
|
| 10. |
Drilling
operations will operate at least 8 hours per-day (10 days on
& 4-days
off) or a schedule that is agreeable to both
parties.
|
Xxxxxxxxxxxx
will invoice not more than twice monthly on the 1st
and
15th
of each
month and payments will be made on the 15th
of a
month for invoices received on the 1st
of a
month and on the 1st
of the
following month for invoices received on the 15th
of the
preceding month.
Silver
Reserve agrees to provide a $50,000.00 advance payment against work to be
carried out which shall be credited against the final invoice or invoices of
the
drill program or programs. Said advance payment shall be made on execution
of
the Drilling Contract.
All
drilling and other work carried out by Christiansen shall be done in a xxxxxxx
like manner in compliance with regulation governing drilling or other work
in
the State of Nevada.
Xxxxxxxxxxxx
shall maintain liability and xxxxxxx compensation coverage in the amounts set
out in the certificate delivered to Silver Reserve at all times while working
for Silver Reserve and undertakes to notify or cause its insurance company
to
notify Silver Reserve of any interruption or cancellation of the insurance
coverage as presented.
2
During
the term of this Contract, and thereafter, Christiansen shall not, without
the
prior written consent of Silver Reserve, disclose to anyone any Confidential
Information. "Confidential Information" for the purposes of this Contract shall
include proprietary and confidential information such as, but not limited to,
drilling results, assay reporting, tonnage calculations or production plans.
Confidential Information shall not include any information that:
A.
is disclosed by Silver Reserve without restriction;
B. becomes
publicly available through no act of Christiansen
C.
is
rightfully received by Christiansen from a third party.
This
Contract constitutes the final understanding and agreement between the parties
with respect to the subject matter hereof and supersedes all prior negotiations,
understandings and agreements between the parties, whether written or oral.
This
Contract may be amended, supplemented or changed only by an agreement in
writing
signed by both of the parties.
This
Agreement may be executed in multiple counterparts, each of which shall
be deemed an original, and all of which together shall constitute one and
the same instrument. Execution and delivery of this Agreement by exchange
of
facsimile copies bearing facsimile signature of a party shall constitute
a valid
and binding execution and delivery of this Agreement by such party. Such
facsimile copies shall constitute enforceable original documents.
IN
WITNESS WHEREOF the parties have executed this Agreement effective as of the
date first written above.
| Silver Reserve Corp. | Xxxxxxxxxxxx Drilling, Inc. |
| By_______________________ | By |
|
|
|
|
Title
|
Title
|
3
