Placer Dome eyes Battle Mountain

Vancouver — Placer Dome (PDG-T) has inked a deal to earn a 60% interest in Nevada Pacific Gold’s (NPG-V) Battle Mountain gold project in Nevada.

The Battle Mountain project consists of mineral rights covering approximately 24 sq. miles situated along the east flank of the Battle Mountain Range at the northern end of the Battle Mountain-Eureka trend.

Placer Dome can earn a 60% interest in the project by paying Nevada Pacific US$200,000 on signing and spending US$4.0 million on exploration over a five-year period. The exploration spending is carried out in a series of tranches: US$500,000 in year one, US$750,000 in each of years two and three, US$1.0 million in each of years four and five. The major can earn an additional 10% interest by carrying Nevada Pacific through feasibility. Nevada Pacific will initially be the exploration operator at Battle Mountain and will implement the first phase of exploration.

“The combination of Placer Dome’s proven technical expertise and financial resources are now being focused on Nevada Pacific’s Battle Mountain and South Carlin projects,” said David Hottman, Chairman, of Nevada Pacific. “This joint venture will ensure the rapid advancement of the exploration potential of our strategically located landholdings on the Battle Mountain trend.”

The Battle Mountain project is situated between Newmont Mining’s (NMC-T), Lone Tree mine and Glamis Gold’s (GLG-T) Marigold mine to the northwest. Newmont’s Trenton Canyon mine lies to the west and its Surprise-Labrador deposits are situated on Battle Mountain’s eastern flank.

Battle Mountain hosts five gold and silver exploration targets. In the centre of the property, the multi-phased Elder Creek intrusive complex has altered the surrounding Paleozoic-aged sedimentary rocks. This alteration exceeds an area of 5 sq. miles. Mineralization consists of epithermal alteration, including quartz stockwork, silicification and skarn and is associated with strong north-south structural trends. Historic production from various prospects on the property are reported to have returned values up to 0.850 oz. gold per ton and 16.50 oz. silver per ton.

Nevada Pacific holds a portfolio of ten gold exploration projects and one silver project that cover about 130 sq. miles of mineral rights. The company’s South Carlin and BMX projects are optioned to Placer Dome and the Limousine Butte project is joint-ventured with Newmont Mining.