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Thursday, Feb 22, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Fortitude Gold acquires two separate gold properties in Nevada

Fortitude Gold acquired the Dauntless claim package from Nevada Select Royalty Inc, a subsidiary of Gold Royalty Corp

Fortitude Gold acquires two separate gold properties in Nevada
Fortitude Gold's Mina Property in Nevada. Image via Fortitude Gold.

Fortitude Gold (OTCQB: FTCO) announced on Friday that it acquired two separate gold properties within Nevada’s Walker Lane Mineral Belt.

The company operates the Dauntless gold property, which encompasses the historic Weepah gold mine situated in Esmeralda County, Nevada, around 30 kilometers southwest of Tonopah.

Additionally, the company manages the Intrepid claim package, positioned in Mineral County, Nevada, approximately 10 kilometers northwest of Mina. Specializing in gold production, development, and exploration, Fortitude Gold provides investors with opportunities for both gold exposure and dividend yield in the U.S.A.

Fortitude Gold acquired the Dauntless claim package from Nevada Select Royalty Inc, a subsidiary of Gold Royalty Corp (NYSE: GROY).

This land package spans approximately 2,105 acres and has a history of high-grade gold production from both open pit and underground workings. Notably, it boasts undeveloped drill intercepts, including 16 meters of 3.36 grams per tonne (g/t) gold.

To enhance its land position and exploration potential, Fortitude Gold staked 129 additional unpatented claims around the property.

The company acquired a 100 per cent interest in the Dauntless claim package for a total consideration of USD$725,000. Nevada Select retained a maximum net smelter return royalty (NSR) of 3 per cent on future production from the property claims.

The company has a few reasons for justifying the acquisition of the property such as the presence of high-grade gold near the surface, a history of high-grade gold production, exploration potential, and its location in the Walker Lane Mineral Belt within trucking distance to the Company’s Isabella Pearl gold processing facility.

Fortitude Gold Dauntless map. Image via Fortress Gold.

Read more: Calibre Mining closes top tier gold merger with Marathon Gold

Read more: Calibre Mining intercepts high-grade gold below Jabali mine, identifies 3 new gold targets

Historic mining records show 60,000 ounces of gold in the 1980’s

Historic mining records indicate that during the mid-1980s, a small portion of the claims was mined by Sunshine Mining Company, which reported 60,000 ounces of gold mined at an average grade of 3.1 grams per tonne (g/t) and a 1:1 strip ratio. Despite low historic metal prices leading to the closure of the mine, it was estimated that more mineralization remained.

Experts believe that gold mineralization at Dauntless occurs within two broad shear zones. The western shear zone features a small open pit and adjacent underground workings while the eastern shear zone was subject to modest exploratory workings. Both shear zones have been traced for hundreds of meters along strike and down dip. The company’s rock check samples have confirmed widespread surface gold grades as high as 14 grams per tonne (g/t) gold.

“These two exciting acquisitions checks all the boxes for us, including the presence of high-grade surface and near surface gold, substantial exploration potential on both brownfield and greenfield exploration targets, and their proximity to our Isabella Pearl facility for potential synergistic future ore feed and processing,” Mr. Jason Reid, CEO and President of Fortitude Gold, said.

“It is very positive that the historic Weepah mine, now located on the larger Dauntless property, extracted high-grade gold back in the nineteen eighties and, fortunately for us, the pressure of low market metal prices forced them to walk away from high-grade mineralization in both the bottom and potential expansion of the historic pit.”

Read more: Calibre Mining secures largest undeveloped gold resource in Atlantic Canada through $345M Marathon Gold merger

Read more: Calibre Mining reports record year-to-date earnings in Q3 financials

Third party mineralization data shows additional exploration potential

Third parties have reported mineralization, including drill results showing upwards of 16.5 meters of 3.36 g/t gold, suggesting a potential extension to the historic open pit. This warrants additional exploration to confirm, expand, and identify remaining mineralized potential. Zones sampled in the pit, along with historic third-party drilling, indicate continuity of high-grade gold in at least one dominant mineralized structure.

Historic third-party drill highlights include:

  • 16.5 m (54 feet) of  3.36 g/t gold
  • 15.2 m (50 feet) of  3.11 g/t gold
  •   6.1 m (20 feet) of  7.46 g/t gold
  •   3.0 m (10 feet) of  2.79 g/t gold

The company acquired a 100 per cent interest in Intrepid and a larger claim package by staking claims and issuing a maximum NSR of 3 per cent to an individual on future production.

No cash payment was made to the claim holder in association with the Intrepid acquisition. Gold mineralization at the property is hosted by silicified volcanics and sediments. The company has submitted a Notice of Intent to drill Intrepid to the Bureau of Land Management.

Fortitude Gold’s recent acquisitions add to Nevada’s rich mining landscape. These developments parallel the ongoing activities at Calibre Mining Corp.‘s (TSX: CXB) (OTCQX: CXBMF) Pan Mine, also located in Nevada.

During Q4, Calibre set records with its quarterly gold production with 75,482 ounces. While its El Limon properties in Nicaragua produced 64,963 ounces, Calibre’s Pan Mine operations still produced 10,519 ounces.

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 Calibre Mining is a sponsor of Mugglehead news coverage

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