Minaurum Gold Inc (CVE: MGG) (OTCMKTS: MMRGF) (FRA: 78M) is taking advantage of an option agreement it secured last fall.
The explorer will pay Nevada Zinc Corp (CVE: NZN) (FRA: 6GX) US$1 million worth of stock and US$100,000 in cash for a 100 per cent interest in the Lone Mountain carbonate replacement deposit (CRD) site in mining-friendly Nevada. A PEA from 2019 determined that the zinc-lead project would have a 35 per cent after tax internal rate of return.
Tuesday’s announcement about capitalizing on the option deal sent shares up by over 22 per cent on the TSX Venture Exchange.
“Lone Mountain looks a lot like neighbouring historical silver-lead-zinc CRDs,” said exploration manager Peter Megaw, “such as Eureka next door or Cortez up the road, both of which have been found to have a significant Carlin gold overprint.”
The Battle Mountain-Eureka trend where Lone Mountain resides is particularly renowned for gold production from “Carlin-style” deposits. Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA) churned out over 7,000 ounces from the trend’s Pan Gold Mine last quarter, and many others capitalize on its resources.
In addition to the zinc (Zn) and lead (Pb) mineralization (3.25 million tonnes grading 7.57 per cent Zn and 0.7 per cent Pb, based on a 2019 MRE) Minaurum’s CEO says it has significant precious metal potential.
“We are pleased to acquire Lone Mountain, an advanced project with robust economics that we believe could host significant silver and gold mineralization at depth,” chief executive and President, Darrell Rader, explained in a release from Minaurum.
The past-producing Mountain View mine sits on the Lone Mountain property. It yielded over 5 million pounds of zinc between the early 1940s and late 1960s.
Long intervals of high-grade zinc have been intercepted on the property. One core assay yielded 9.58 per cent Zn over 118.87 metres with 27.82 per cent Zn over 15.24 metres.
Zinc is primarily used for corrosion protection coatings on steel, vehicles and other metal items. It is also an essential component of various alloys and gets utilized for die-casting in the automotive, electronics, industrial equipment and toy industries.
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