Emgold Mining has signed a letter of intent (LoI) for an option agreement to acquire an 80% interest in Nevada Sunrise Gold’s Golden Arrow gold-silver property in Nevada, US.
Under the terms of the LoI, Emgold will issue 2.5 million units to Nevada Sunrise, in addition to spending C$2.75m ($2.17m) towards the exploration of the project.
The property has measured and indicated resource of 12.2 million tonnes (mt) with an average gold equivalent grade of 0.030oz per tonne (opt), totalling 365,900 gold equivalent ounces.
Located around 40 miles east of Tonopah in Nye County, Golden Arrow has an inferred resource of 3.8mt and an aggregate of 72,000 gold equivalent ounces with an average gold equivalent grade of 0.013opt.
Emgold Mining president and CEO David Watkinson said: "The Golden Arrow Property transaction is part of our ongoing acquisition and exploration efforts focused in Nevada.”
The company currently has Buckskin Rawhide East, Buckskin Rawhide West and Koegel Rawhide properties in Nevada, and it intends to explore the acquisition of additional assets in the state.
The Golden Arrow project comes with an exploration database, including geochemical sampling and geophysics, as well as more than 190,000ft of reverse circulation and diamond core drilling.
According to the company, a drilling campaign was undertaken on the property’s Gold Coin and Hidden Hill deposits for bulk disseminated mineralisation.
Emgold is planning to expand the project, where multiple exploration targets have been identified, and estimates the potential for high-grade vein mineralisation.
Along with signing a definitive option agreement, the company will carry out equity financing to fund the initial acquisition cost of the property, in order to explore Golden Arrow and other properties.
The LoI also indicates Emgold will have the right to further increase its interest in the property to 100%.