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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Getchell Gold completes acquisition of Fondaway Canyon Gold in Nevada

The company doubled the size of its historical resource after three drilling programs

Getchell Gold completes acquisition of Fondaway Canyon Gold in Nevada
A mining site at the Fondaway Canyon project in Nevada. Image via Getchell Gold.

Getchell Gold Corp. (CSE: GTCH) (OTCQB: GGLDF) (FWB: GGA1) has completed the final round of share issuances and cash payments to complete its acquisition of the Fondaway Canyon Gold Project and Dixie Comstock properties in Nevada.

The company announced the completion of these final steps on Wednesday by paying USD$1.6 million in cash and issuing USD$1 million in shares to Canagold Resources (TSX: CCM) (OTCQB: CRCUF).

Under the agreement, Getchell had to fulfill a total of $2 million in cash payments and USD$2 million in share issuances over four years, along with meeting work commitments of USD$1.45 million, which have now been fulfilled. The company also granted Canagold a 2 per cent net smelter return (NSR) royalty on each property, with the option to repurchase half of this royalty for USD$1 million per property.

After successfully completing three consecutive drilling programs, Getchell has effectively doubled the size of the historic resource. The company also recently released its first mineral resource estimate (MRE) at Fondaway Canyon.

Gold mineralization occurs at and near the surface, supporting an open pit mine. The inferred resource, totalling 1,509,100 ounces of gold, consists of 38.3 million tonnes with an average grade of 1.23 g/t Au.

Additionally, the indicated mineral resource adds an extra 550,800 ounces of gold, comprising 11.0 million tonnes with an average grade of 1.56 g/t Au.

The company has designed a fully permitted drill program to expand the mineral resources and upgrade inferred resources to indicated.

Getchell Gold can now expand its MRE and prepare a preliminary economic assessment.

Read more: Calibre Mining joins Mining Association of Canada

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

Nevada offers multiple success stories

Getchell’s doubling of its historic resource marks another Nevada gold success story. Plenty of companies operating in Nevada have found success.

For example, we have Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) and Newmont Corporation (TSX: NGT) (NYSE: NEM) joint venture Nevada Gold Mines. Its Goldrush project is anticipated to produce around 400,000 gold ounces per year starting in 2028.

Additionally, American Pacific Mining Corp (CSE: USGD) (OTCQX: USGDF) is discovering rock samples far exceeding the company’s expectations. These grades including upwards to 100 grams per tonne.

Calibre Mining (TSX: CXB) (OTCQX: CXBMF) is another example of a company making a big splash in Nevada.

Last summer, Calibre expanded its resources north and south from the open pit at its Pan Gold Mine in Nevada.  These reported high-grade drill results above its mineral resource grade.

“We are taken aback, or somewhat gobsmacked, by the intervals of gold mineralization being returned from drilling on the Palomino target at Pan,” a new research report by Haywood Securities Inc. analysts Geordie Mark and Nicholas Lobo reads.

Calibre Mining’s summer results at Pan originated from the Dynamite North and Palomino targets. The intercepts from these two areas, in combination with the new Coyote target south of the open pit, continue to show potential for increased resources and high grades at Pan.


 Calibre Mining is a sponsor of Mugglehead news coverage


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