A merger with a NASDAQ-listed shell is expected to provide funds for Newgold to advance its portfolio of exploration and development projects in the western U.S.
The company intends to reopen the Relief Canyon gold mine in Nevada, which was closed in 1989 by Pegasus Gold after reserves there were mined out. The major conducted extensive exploration on the property surrounding the mine in the late 1980s but failed to outline additional reserves.
In 1995, Newgold acquired the project, which includes a 10,000-tonne-per-day mill. Based on the data from previous drilling, the property is estimated to host resources, minable by open-pit methods, ranging from 5.6 million tons grading 0.022 oz. gold per ton to 8.2 million tons of 0.02 oz.
Newgold also hopes to revive the Bruner gold project, 210 km east of Reno, which it leased from Miramar Mining (MIR-T).
Miramar had previously optioned the project to Newmont Gold (NEM-N), however the major abandoned the project when results failed to meet its expectations.
Bruner is in a historic mining district where past development focused on high-grade, gold-quartz-adularia veins hosted in brecciated Tertiary alkali volcanics. Recent exploration has outlined a resource of 13.6 million tonnes grading 0.87 gram gold.
Newgold also plans to explore and develop its Mission mine project in southern California, a past-producer.
Be the first to comment on "EXPLORATION ROUNDUP — Newgold launches Nevada exploration"