Element79 Gold Corp. (CSE:ELEM) (OTC:ELMGF) announced several updates related to its Nevada Portfolio:
Highlights of Element79’s Nevada portfolio since acquisition in 2021
- A portfolio of 16 projects was acquired as an “all or nothing” package from Waterton Global Resource Management in December 2021. The Company has subsequently reviewed, updated and expanded historical data sets, and ultimately divested of many projects with an eye to generate shareholder value.
- Two projects sold to Centra in 2023 – Stargo and Long Peak. Long Peak 43-101 expected to be complete during late summer 2024.
- The Company made the strategic decision to not renew the claims on eight projects due to being very early stage and outside of the Company’s parameters to work on; data rooms for these projects were retained.
- The Maverick Springs project was purchased with a 1.8M oz AuEq Historical Reosurce, which the Company reviewed, reworked and increased the Mineral Resource Estimate to 3.71Moz AuEq. Maverick Springs was sold to Sun Silver on May 8, 2024, with cash received being used to pay off debts and accounts payable; the Company retained 3,500,000 shares of Sun Silver Limited (ASX:SS1) at 0.20 AUD as an investment in the development of the Maverick Springs asset. The Company will hold and divest of these shares strategically over time.
- Valdo portfolio – Original option expired. In discussions with multiple counterparties for sale of the same projects, anticipated closing in 2024.
- Clover, West Whistler – portfolio under review, currently in discussions with third parties to sell
Valdo Package Reset for Sale
The Company confirms the expiry of the previously-announced Letter of Intent (“LOI”) with Valdo Minerals Ltd. for the purchase of the North Mill Creek, Elder Creek, and Elephant Projects, including all land claims and historical databases relative to the projects therein.
The original LOI was established on November 17, 2022 with an original closing date of July 15, 2023. As the parties communicated through the process and were working towards a closing, a 60-day extension was granted, which has expired.
The Company is in discussions with two parties regarding these same projects with the intent to close the sale of them within 2024. Element79 Gold Corp. remains committed to the successful completion of the divestiture of these projects and believes that it will come to commercially beneficial terms for their sale in the near term.
The North Mill Creek Project
The North Mill Creek Project (“North Mill Creek“) is comprised of 6 unpatented claims located at the margins of the Goat Window in Lander County, Nevada. The Goat Window is an exposure of lower plate rocks beneath the Roberts Mountains Thrust which are the preferred carbonate host of Carlin-type gold deposits. Previous drilling completed at North Mill Creek yielded encouraging results warranting follow-up exploration.
The Elder Creek Project
The Elder Creek Project (“Elder Creek“) is comprised of 23 unpatented claims which cover the historic Elder Creek open-pit mine in Lander County, Nevada. Elder Creek is hosted in upper plate rocks where the mine area is believed to represent leakage from the deeper lower plate of the Roberts Mountains Thrust, suggesting that deeper targets could host significant mineralization within faulted and anticline folded sedimentary beds.
The Elephant Project
The Elephant Project (“Elephant“) is comprised of 197 claims located at the foot of the mine dumps at Nevada Gold Mines’ Phoenix operation. Elephant hosts a covered pediment target with various depths of cover based on the displacement of fault blocks. Limited past drilling has confirmed the presence and mineralization of the Elephant target model.
Remaining Nevada Portfolio Under Review
With the sale of Maverick Springs bringing attention to the Company, it has been fielding calls with counterparties inquiring about the remaining projects in the Element79 Gold Corp portfolio, Clover and West Whistler. These projects have been visited and are under review by the Element79 Gold team, being weighed for further development and dealing.
Clover
Clover is in Elko County in township 38 range 44 and in township 37 range 44. The property comprises 162 claims over 3,063 acres. Clover is positioned over felsic volcanics and tuffaceous sedimentary rocks. Two sets of conjugate faults strike across or adjacent to the property, with each of these fault systems projects to a major Au producer. Past project owners had drilled 104 holes and have completed remediation work; past drill results include: JK-4C were 32’ at 25 g/t Au with a peak intersection of 2.5’ at 274 g/t Au; CL-13 intersected 25’ at 7.85 g/t Au; USCV012 intersected 10’ at 20.4 g/t Au.
West Whistler
19km West of Eureka, Nevada, West Whistler is a moderate group of 103 claims over 2,057 acres in Eureka County. Regionally proximate to the former Barrick, current-day i80 Gold Ruby Hill Mine. Historic work includes mapping, soil sampling, VLF survey and 6 drill holes.
Qualified Person
The technical information in this release has been reviewed and verified by Kim Kirkland, Fellow of AusIMM #309585, Chief Operating Officer of Element79 Gold Corp, and a “qualified person” as defined by National Instrument 43-101.
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