Quebec-based Boreal Exploration (BOR-M) has signed an agreement with a private company to acquire the Gold Hill gold property in northern Nye Cty., Nev.
The 1,200-ha property was the site of small-scale underground mining in the 1930s. During that period, a total of 41,200 oz. gold and 248,000 oz.
silver were produced from 106,594 tonnes of ore. Mining was largely focused on the narrow, steeply-dipping Gold Hill quartz vein.
The company compares the property’s geological setting with the nearby producing Round Mountain gold mine of Echo Bay Mines, Homestake Mining and Case Pomeroy & Company. Specifically, gold mineralization at both mines is localized at intersections of fracture sets associated with a large caldera.
Boreal can earn a 100% interest in the property by paying US$100,000 by mid-May, spending US$500,000 on exploration in each of the next five years and issuing 3 million shares to the vendor. The deal, which is still subject to regulatory approval, leaves the vendor with a 7% net smelter return royalty, 6% of which Boreal can buy back for US$2.2 million.
A drilling program will begin in June to verify and extend the known mineralization.
Meanwhile, Boreal has begun a drilling program at its Rivire Pontois gold-copper-zinc property in the James Bay region of northwestern Quebec.
The program is testing several mineralized zones outlined by an earlier program of trenching and geophysics.
A total of four trenches were dug. The first two trenches revealed gold mineralization in an iron formation, with results varying from 2.4 to 10.6 grams gold per tonne over unspecified lengths. The third and fourth trenches, dug west of the first two, exposed copper and zinc mineralization in another iron formation. Results varied from 0.4% to 2.14% copper and 0.36% to 2.73% copper over unspecified lengths.
Funds for the drilling campaign are being provided by a $1.5-million private financing, which the company closed at the end of December.
Be the first to comment on "Boreal explores Nevada gold property"