Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos

Mining & Commodities
Minerals & Materials
Return to: EBR Home | Mining & Commodities | Minerals & Materials

Gold Resource buys County Line gold asset in Nevada, US

Published 13 March 2018

Gold Resource has acquired County Line gold property located in Mineral and Nye Counties, Nevada from Nevada Select Royalty, a subsidiary of Ely Gold Royalties.

Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. 

The Company has returned $110 million to shareholders in monthly dividends since commercial production commenced July 1, 2010 and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

County Line acquisition highlights include:

  • Potential high-grade gold open pit heap leach operation
  • High sulfidation epithermal system
  • Historic multi-gram high-grade gold drill intercepts
  • Historic and recent high-grade gold surface samples
  • Excellent gold recoveries in cyanide bottle roll tests
  • 53 unpatented lode mining claims; one unpatented placer mining claim
  • Staked 63 additional unpatented lode mining claims around acquired land position
  • 939 hectares (2,320 acres) total acquired and staked land package strengthens the Company’s Nevada Mining Unit
  • Mining friendly jurisdiction, Nevada, U.S.A.
  • 100% acquisition
  • No bank or broker transaction fees

The Company acquired 100% interest in the County Line property from Nevada Select for total cash compensation of US$300,000.  Nevada Select retained a net smelter return royalty (NSR) of 3% on the property claims. 

The Company has the right to buy down 1% of the NSR on the claims for US$1,000,000.  

The acquired County Line property covers an area of approximately 429 hectares (1,060 acres) consisting of 53 unpatented lode mining claims and one unpatented placer mining claim in central Nevada’s Walker Lane Mineral Belt in Mineral and Nye counties, Nevada. 

The Company staked 63 additional unpatented claims around the property to strengthen the land position and exploration potential.  The total land package consists of 939 hectares (2,320 acres). 

The property is located within close proximity, approximately 14 miles north east, of the Company’s Isabella Pearl Project and becomes the fifth property in the Company’s Nevada Mining Unit. 

Gold Resource Corporation’s Nevada Mining Unit now controls approximately 11,979 hectares (29,600) acres of exploration lands in south central Nevada’s Walker Lane Mineral Belt.

The County Line property is part of the Paradise Peak collection cluster of high sulfidation epithermal deposits. 

The district historically produced a total of 1.5 million ounces of gold and 38.9 million ounces of silver. The County Line open pit historically produced approximately 81,000 ounces of gold and 760,000 ounces silver.

The Porphyry (East) Pit, located approximately 2,500 feet south east of the County Line pit, produced approximately 7,400 ounces of gold and 8,000 ounces silver.  While both open pits represent exploration targets, other targets include “Newman Ridge” and the “Jackpot Zone”.   

The Company’s main objective with this acquisition is to explore new prospective areas of the property, as well as evaluate the potential of delineating and expanding mineralized material in the historic open pits. 

During Company due diligence, rock chip samples obtained from the bottom of the County Line pit averaged 2.2 grams per tonne (g/t) gold with cyanide bottle-roll tests on those samples yielded an average of 94.5% gold recovery in approximately two hours.  

Gold Resource CEO and president Jason Reid said: “We are pleased to have acquired the County Line gold property from Ely Gold Royalties Inc.

“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.” 

Source: Company Press Release