Nevada King Gold Corp. (TSX-V: NKG) is dividing itself in two so it can give the Atlanta gold mine and its Battle Mountain Trend claims enhanced attention. The new operator will not be separately listed on any exchange.
The company announced the upcoming creation of what is currently designated as “SpinCo” on Tuesday. It will focus on Nevada King’s 9,862 Battle Mountain claims. Shareholders will soon have a stake in two entities.
“Creating a standalone focused company holding Nevada King’s large portfolio of claims along the Battle Mountain trend will create an exciting growth-focused story with a dominant land position,” chief executive Collin Kettell said, “along one of the world’s most prolific gold mining trends.”
Nevada King recently assayed core samples from Atlanta with reasonable grades over significant lengths. Most notably 6.14 grams per tonne gold over nearly 31 metres.
In fact, the gold miner has had a constant stream of favourable results for the past couple years. In March, the company announced intercepting about 7.8 g/t Au over 43 metres. Prior to that Nevada King assayed a core sample containing 19.4 g/t Au over 7.6 metres, and the list goes on all the way back until late 2021.
Dr. Quinton Hennigh of @Crescat_Capital shares his opinions on our latest news, where we released intercepts of:
6.14 g/t gold over 30.7m
4.15 g/t gold over 35.1m, and
3.08 g/t gold over 48.8m,and confirmed a strong intrusive connection to gold mineralization at… pic.twitter.com/q5YJ8KaWWh
— Nevada King Gold Corp. (@NevadaKingGold) June 11, 2024
Read more: U.S. Gold interview highlights importance of flagship site’s new mining permit
Read more: Calibre Mining pulls promising high grades from Valentine Lake Sheer Zone
Third largest mineral claim holder in the state
SpinCo’s land position is surpassed only by Nevada Gold Mines and Kinross Gold Corporation (TSX: K). The vast number of claims it will hold span more than 193,000 hectares.
Nevada is known to produce large quantities of gold from the Carlin-style deposits in the Battle Mountain Trend. Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF) produced more than 6,750 ounces from the trend’s Pan Mine in Q1 this year alone. It has multiple gold and silver deposits, which have been exploited since the 1800s.
Nevada’s nickname “the Silver State” comes from the time before gold mining became more prevalent in the state during the 20th century. The less expensive precious metal was the primary focus of miners many years ago.
The state’s Cortez Trend to the southwest is also quite prolific. Companies like U.S. Gold Corp. (Nasdaq: USAU) have been capitalizing on its resources. The Wyoming-based miner has identified extensive gold mineralization at its Keystone project there.
McEwen Mining Inc. (TSX: MUX) has a considerable open-pit heap leach operation in the Cortez Trend too: Gold Bar.
U.S. Gold and Calibre Mining are sponsors of Mugglehead news coverage
rowan@mugglehead.com
