Newmont Gold (NGC-N) has bought Quest International Resources’ (QIX-T) stake in the Tess gold property in Elko Cty., Nev.
The major will gain complete ownership of the 3.5-sq.-mile property, near the Rain gold mine at the southern end of the Carlin trend. In return, it must pay Quest (formerly Consolidated Ramrod) US$6.25 million and a 1% net smelter return royalty on production exceeding 1 million oz.
The property is on the northwestern extension of the Rain fault. Newmont has been conducting exploration on the joint venture since 1992.
To date, 13 holes have been drilled into the underground target.
The Rain underground mine has produced 40,000 oz. gold through June 30, with an estimated potential (not including the Tess) of a half a million ounces.
At the end of 1995, reserves stood at 148,000 tons grading 0.203 oz. gold.
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