Gold Resource acquires County Line gold property in Nevada, US

14 March 2018 (Last Updated March 14th, 2018 10:09)

Exploration and production company Gold Resource has acquired Nevada Select Royalty's County Line gold property, located in Mineral and Nye Counties, Nevada, US.

Exploration and production company Gold Resource has acquired Nevada Select Royalty’s County Line gold property, located in Mineral and Nye Counties, Nevada, US.

The acquisition is valued at $300,000 and is expected to grant Gold Resource access to potential high-grade gold, open-pit heap leach operations and a high-sulphidation epithermal system.

The property covers an area of around 429ha and comprises historic multi-gram high-grade gold drill intercepts and 53 unpatented lode mining claims, as well as one unpatented placer mining claim.

"We were very interested in exploring this area in the past as we believe it to be the most prospective ground around County Line."

Gold Resource has also staked 63 additional unpatented claims around the property in order to strengthen its exploration potential, increasing the overall land package to 939ha.

Gold Resource CEO and president Jason Reid said: “We were very interested in exploring this area in the past as we believe it to be the most prospective ground around County Line, but could not obtain this core land position at that time.

“To be able to now acquire and strengthen this land package is a strong addition to our Nevada Mining Unit.”

Nevada Select retains the right to earn a net smelter return royalty (NSR) of 3% on the property claims.

Gold Resource will be permitted to repurchase up to 1% of the NSR for a consideration of $1m under the deal.

The property is located approximately 14 miles north-east of Gold Resource’s Isabella Pearl project.

The company now possesses a total of five properties in its Nevada Mining Unit following the acquisition.

Due diligence was conducted prior to the purchase, including the gathering of rock chip samples from the bottom of the County Line pit, which averaged 2.2 grams per tonne (g/t) of gold.

Furthermore, the company noted that cyanide bottle-roll tests on the samples resulted in an average gold recovery of 94.5%.