Nevada Goldfields buys claims it had been leasing for mining

Consolidated Nevada Goldfields (TSE) has purchased several mining properties in the Aurora mining district of Nevada for $1.2 million.

The Colorado-based junior had been leasing the claims, which include the Aurora mine property, from Siskon Corp.

One-half of the purchase price was paid at closing, with the balance to be paid over a 3-year period. Siskon will retain a 1.25% net smelter return on production from the area.

As of June 30, 1990, proven, probable and possible reserve at Aurora stood at 348,000 tons averaging 0.18 oz. gold. Consolidated Nevada (CNGC) says a drilling program is under way to outline additional reserves. An updated reserve figure will be released shortly.

To cover the cost of the purchase, CNGC has sold its ownership and royalty interests in several mining properties in the district to the Aurora Partnership, a joint venture consisting of Electra Mining (VSE) and Minerex Resources (TSE). The land package includes several properties CNGC had previously leased to the partnership.

In return, Consolidated will receive 5,397 oz. of gold from crushed ore delivered to the Aurora mill by the partnership over a 4-month period. The crushed ore will be milled by CNGC at its own expense.