AngloGold closer to production in Nevada with Corvus takeover

Drilling at Silicon gold project, in Nevada. (Image courtesy of Oregen Royalties |Twitter.)

South Africa’s AngloGold Ashanti (NYSE: AU; JSE: ANG) expects to start producing gold in Nevada, U.S., by 2025 at the latest, as the company officially took over Canada’s Corvus Gold (TSX: KOR; NASDAQ: KOR) today.

The bullion producer said the nearly US$370-million acquisition of the Canadian junior opened up a new, precious metals-rich jurisdiction for the company — the Beatty gold district in south-central Nevada.

Corvus held the North Bullfrog, Mother Lode and other exploration assets located in close proximity to, or contiguous with, AngloGold’s exploration assets of Silicon, Transvaal and Rhyolite.

AngloGold said the assets combination would help the Beatty district become a Tier-1 asset, a large, long life and low cost deposit that develop into “company making” mines.

The company said it plans to develop North Bullfrog first, with production in the next three to four years. Next in line would be Silicon, Merlin (including Lynnda Strip) and Mother Lode. Targets will be considered with strict reference to the company’s capital allocation framework.

Corvus, which will now delist from the TSX, announced in 2020 preliminary economic assessments (PEAs) for North Bullfrog and Mother Lode projects as two standalone mines.

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