Calneva picks up gold prospect in Nevada

International Calneva Gold (ICG-V) has acquired a land package in the Tuscarora mining district of northern Nevada.

The company picked up the Beard Hill-Castille Mountain prospect, covering 3,200 acres east of Midas and southwest of Independence Valley.

The property, which consists of 124 unpatented mining claims and 800 acres of fee land, is underlain by felsic domes that host hydrothermal breccias and epithermal mineralization. A previous owner collected 208 geochemical samples, 67 of which assayed better than 100 parts per billion gold. The samples were also anomalous in such pathfinder elements as arsenic, antimony and mercury.

The company plans to begin drilling by June in search of high-grade underground gold targets. It has reached an agreement with a local drilling company, whereby the driller will take payment for services in shares.

Calneva leased the property by making a US$20,000 payment for the first year; it must pay the US$30,000 balance in the second year. The property owner retains a 3% gross proceeds royalty, though Calneva has the right to buy back 1%.