Nevada Pacific signs two Nevada deals with Placer Dome

Vancouver – Nevada Pacific Gold (NPG-V) has signed two deals with Placer Dome bringing to three, the number of Nevada projects the two have paired up on. According to Nevada Pacific, Placer Dome makes an ideal partner to develop its Nevada properties including Keystone, Limousine Butte and BMX, due to its experience in the area. Placer is also investing in Nevada Pacific’s shares to the tune of US$1 million.

Placer will fund a US$5 million exploration program over five years on Nevada Pacific’s wholly-owned Keystone gold project, for the right to earn a 60% interest in the gold resources. Placer Dome can earn an additional 15% interest for 75%, by completing a full feasibility study. Nevada Pacific retains 100% of the base metal and silver rights at Keystone.

The Keystone gold project comprises 338 claims, covering some 6,760 acres, situated 12 miles south and along strike of the Cortez Joint Venture which is 60% owned by Placer Dome, the operator and 40% by Rio Tinto. Recent drilling in the area has discovered extensive widths containing very high grades of gold.

Placer Dome also signed an option agreement to earn a 60% interest in Nevada Pacific’s wholly-owned Limousine Butte project by spending US$4 million on exploration over five years. The deal also allows Placer Dome to earn a further 15% interest for 75% by completing a full feasibility study.

The Limousine Butte project comprises 423 claims covering some 8,460 acres situated in White Pine County, Nevada, approximately 20 miles due east of Placer Dome’s Bald Mountain mine and 45 miles southeast of Newmont’s Rain Mine. The property comprises mineral rights covering approximately 13 square miles situated along the projected untested extension of the Carlin Trend.

On the companies’ BMX project, situated in the Battle Mountain copper-gold district of northeastern Nevada, several high gold grades were found through surface and underground sampling on the Bluebird target last summer.

Placer Dome has also just invested US$1 million in Nevada Pacific’s shares. Nevada Pacific wants to use the net proceeds towards advancing exploration on its other gold and silver properties in Nevada and increase the reserve and resources at the Magistral gold mine in Mexico, through exploration.