Canadian miner Endeavour Silver has agreed to acquire a 100% interest in the Bruner gold and silver project in Nevada, US, from Canamex Gold in a $10m cash deal.
Spread over 1,457ha, the advanced stage precious metals exploration property contains patented and unpatented claims.
The deal will see Endeavour purchasing the Bruner Gold Project, including related mineral claims, mining rights, property assets, water rights, and government authorisations and permits.
Endeavour CEO Dan Dickson said: “Bruner represents a good start on building an attractive gold-silver portfolio in Nevada and should be an accretive acquisition for our five-year strategic plan to become a premier senior silver producer, with potential for exploration discoveries, district acquisitions, near-term production, and organic growth.
“Our exploration team will focus initially on verifying the historic resources, then turn its attention to the many exploration targets on the Bruner property.”
The transaction is subject to customary closing conditions and Canamex shareholder approval.
The property is located within Nevada’s Walker Lane north-west-trending mineral belt, which hosts several producing mines and recent discoveries.
Exploration activities by previous operators involved mapping, sampling, geophysical surveys, and drilling.
This resulted in a mineral resource estimate in 2015 and a preliminary economic assessment in 2017 outlining a low-cost operation of an open-pit, heap-leach mine.
According to estimates, the project has total resources of around 391,000oz of gold and 3,641,000oz of silver. It also has the potential for resource expansion through further drilling.
Endeavour said: “Endeavour is not treating the historical estimate as a current mineral resource or mineral reserve, has not verified the historical resource estimate, and is not relying on it.”
The firm intends to ‘twin’ certain drill holes and perform drilling to upgrade the historical estimate as a current mineral resource.