Underexplored Scossa property purchased by Romios in Nevada

Toronto-based Romios Gold Resources (RGRI-C) has agreed to buy the Scossa project in Pershing Cty., northwestern Nevada.

The agreement calls for the junior to pay US$82,500 cash and issue 100,000 shares over six years, as well as grant a 2% net smelter return royalty on production. Romios can, at any time, buy back half of the royalty for US$725,000.

The project consists of gold-bearing quartz breccia veins and fault breccias in a varied assemblage of metasedimentary rocks. The gold-bearing structures are steeply dipping (70-80) and range in width from several feet to more than 10 ft.

Gold was produced on the property from 1930 to 1939, when operations were discontinued by the U.S. War Measures Act. Detailed production records are not available, but an unofficial report from the vendors states that the grade of the quartz breccia veins was well in excess of 1 oz. gold per ton.

The Scossa project is 6 miles southeast of the Rosebud mine, a high-grade underground operation held by partners Hecla Mining Company and Newmont Mining, and 8 miles southeast of Hycroft Resources’ open-pit mine, which produces more than 100,000 oz. gold annually.

The property, which was held by the Scossa family for 65 years, has been subjected neither to diamond drilling nor to any other modern mode of exploration.

The acquisition is subject to regulatory approval, a due diligence review by Romios and payment of a finder’s fee of 100,000 shares.