Santa Fe acquires Bob Creek play

New York-listed Santa Fe Pacific Gold is set to acquire the Bob Creek gold property in Nevada’s Eureka Cty.

To do so, it must spend at least US$150,000 on exploration over the next 12 months, and progressively greater amounts over the succeeding three years. Royal Gold (NASDAQ), the current property owner, will retain a 2% net smelter return (NSR) production royalty.

Meanwhile, at the South Pipeline project in adjacent Lander Cty., Royal Gold has bought an additional 1.5% NSR, to be capped at US$375,000. The company currently holds a 20% net profits interest in South Pipeline, which is owned by the Cortez joint venture and operated by Placer Dome (TSE). The deposit contains about 4.4 million oz. gold, and pocessing and milling of ore from the Crescent pit has already begun. Exploration is ongoing.