Reno-based Nevada Canyon Gold Corp. (OTCMKTS: NGLD) has scooped what it believes to be a valuable new exploration earn-in deal in its home state.
The precious metals royalty and streaming-focused company revealed Monday that it has secured the option to take a 50 per cent stake in the Lapon Canyon gold project run by Walker River Resources Corp (CVE: WRR) (OTCMKTS: WRRZF) (FRA: 1WV0). This would be made possible through Nevada Canyon Gold spending US$5 million on exploration expenses on the property over a three-year period.
Nevada Canyon has a pre-existing 3 per cent net smelter royalty at the project and has now shown a greater interest in it. The company’s CEO, Alan Day, says it is a “tremendous” asset to be involved with.
“This initial stream investment adds substantial potential value to our growing royalty portfolio and with all Nevada Canyon assets, offers excellent leverage to gold prices,” Day said in a news release.
The project sits southeast of Reno and resides in close proximity to Borealis Mining Company Ltd‘s (CVE: BOGO) flagship gold mine. The Walker Lane gold trend these projects sit in is a geological feature that has produced over 40 million ounces of the yellow metal since the early nineteenth century.
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Together, they have produced nearly 200 million ounces of the precious metal. The rich deposits therein have helped solidify Nevada’s stature as the top gold-producing American state.
Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF), Nevada Gold Mines, Orla Mining Ltd (TSE: ORLA) and many smaller operators are actively exploiting the gold resources within these areas.
A high spot price of the commodity, currently sitting at approximately US$2,820 per ounce, and an abundance of untapped deposits continue to make Nevada flourish economically in this regard. Estimates of how much the state currently has left range from 60 million ounces to 185 million ounces.
Calibre Mining is a sponsor of Mugglehead news coverage
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