Nevada Pacific strikes deals on gold projects

Privately owned Nevada Pacific Gold has struck a tentative deal with royalty sisters Euro-Nevada Mining (EN-T) and Franco-Nevada Mining (FN-T) to explore the companies’ South Carlin property, in Nevada’s Carlin trend.

Euro and Franco will grant Nevada Pacific the exclusive right to explore, develop and exploit any gold deposit that may occur on the 2,240-acre property in return for a net smelter return royalty and a commitment from Nevada Pacific to spend a minimum of US$50,000 on exploration in the first year. Exploration spending will escalate over time.

The Vancouver-based company has also signed a letter of intent enabling Columbia River Resources (CRVV-Q) to earn a 100% interest in its Blue Basin property, situated in the Independence trend, 22 miles northwest of Elko, Nev.

In order to earn its interest, Columbia must spend US$500,000 on exploration over four years, with US$75,000 due the first year. Columbia must also pay US$50,000 on the signing of a definitive agreement, plus a similar amount on the first anniversary of the agreement. Nevada Pacific will retain a 50% back-in right.

Gold mineralization associated with siliceous gossan outcrops was identified on the property during a base metal exploration program in the 1970s. There are two exploration models for Blue Basin: the first outlines gold mineralization overlying a sedimentary-exhalative base metal system; the second is based on mineralization associated with dolomites and siliceous massive sulphide horizons.