Colorado Resources has entered into a definitive option agreement with Ely Gold and Minerals through their respective fully-owned subsidiaries in the US to acquire a 100% interest in the Green Springs Property, located in eastern Nevada.
The deal is subjected to underlying royalties which should not exceed 3%.
Colorado Resources president and CEO Adam Travis said: “The Green Springs acquisition provides us with a year round exploration opportunity in the top gold mining jurisdiction in the world, adding to our portfolio of significant holdings in the Golden Triangle of northwestern BC.
“We have the opportunity during the winter and early spring prior to our 2017 BC field season to drill test along strike and beneath a past producing mine, that has seen little modern day exploration since mining occurred in the late 1980’s.
"Potentially higher grade feeder structures in the underlying Pilot shale, which have been recognised as important hosts elsewhere in Nevada also provide a compelling target. “
The Green Springs Property comprises 193 unpatented claims in 1,416.2ha held by or under option of Ely.
It is located in the eastern Great Basin, approximately 50 miles from the Kinross‘s Bald Mountain.
The property exhibits a classic Carlin-style gold system, with a large unexplored region.
From 1988 to 1990 US Minerals Exploration Company (USMX) excavated nearly 1.1 million tonnes from this property, carrying an average grade of 2.1g/t gold at a 0.7g/t Au cut-off from three shallow pits at Green Springs with heap leach recoveries estimated to be 80%.
It conducted mining at the shallow depths, generally from the Lower Chainman shale formation.
USMX left at least three other zones un-mined during the excavation period.
From 1990, the Green Springs Property was left idle, with minor surface programmes conducted between 2004 and 2008.
It was acquired by Ely Gold in 2013 which consolidated the holdings in the district by purchasing the surrounding grounds held by Bronco Creek Exploration.
Ely also completed an environmental assessment in 324.2ha of the property.
The assessment will enable exploration and drill hole programme in the main identified areas.
Last year, Ely Gold completed 14 reverse circulation holes that cumulated to 2,065m. Around eight of these drillholes recovered more than 1g/t gold intercepts.