Gold Point is a high-grade gold and silver mining district in the state that produced an estimated 74,000 gold equivalent ounces over an 80-year period. While no significant modern exploration or drilling in the core of the Gold Point district since mining ceased, samples collected from the property averaged 10.7 grams per ton gold.
Vancouver-based Silver Range said in a statement Wednesday that it struck an alliance with Nevada Rand LLC to consolidate the past producing mines and prospects in the Gold Point district, where they staked buffer claims between their respective land positions.
READ: Silver Range Resources amends option agreement with Trifecta Gold on Yuge property, setting up advanced exploration program
The option to GGL Resources include three agreements covering the contiguous parcels of mining claims in Gold Point.
The first agreement covers the EGP property, which consists of 39 federal lode mining claims. GGL has the right to earn a 75% interest by making cash payments totaling C$180,000 and incurring expenditures of C$1.5 million on the project by July 2023. The project will be a 75/25 joint venture between GGL and Silver Range respectively, with Silver Range entitled to a one-time cash payment of US$4 per ounce based on the number of identified gold ounces in either a mineral resource or reserve on EGP.
The second agreement covers the TOM property of 14 mining claims and gives GGL the right to acquire 100% interest on the project by spending US$1.5 million by July 2023. Silver Range and Nevada Rand will each be entitled to a one-time cash payment of US$1 per ounce based on the number of gold ounces identified in either a mineral resource or reserve. In addition, both Silver Range and Nevada Rand will retain a 1% net smelter return royalty on any commercial production at TOM. GGL has the right to purchase half of each of the royalties for US$1 per ounce of gold in any resource or reserve.
A third agreement between Nevada Rand and GGL entitles the latter to acquire 100% interest in the LBD property, which consists of 10 mining claims. GGL will make payments totaling US$1 million in cash and spend no less than US$850,000 on the project by July 2025. Nevada Rand will retain a 2% net smelter return royalty on commercial production from LBD, and GGL may purchase half of the royalty for US$1 million.
Silver Range has a portfolio of 45 properties in Nevada and northern Canada, nine of which are currently under option to other companies.
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