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

Gold

Newmont Corporation drops deal with Appaloosa project in Nevada

he company issued a notice to terminate an option and earn-in agreement

Newmont Corporation drops deal with Appaloosa project in Nevada
Talapoosa gold project in western Nevada, 45 km east of Reno. Image via Timberline Resources.

Newmont Corporation (NYSE: NEM) (TSX: NGT) (ASX: NEM) decided to back out from the Appaloosa project deal in Nevada, originally put together by Newcrest with Canadian gold junior Gunpoint Exploration (TSXV: GUN).

Announced on Thursday, the company issued a notice to terminate an option and earn-in agreement originally signed in September 2022 between Gunpoint and Newcrest Mining prior to its acquisition by Newmont.

The Appaloosa spans a 7-km-long mineralized structural zone within Gunpoint’s flagship Talapoosa gold-silver property in central Nevada. The Talapoosa land package covers 60.17 square kilometers and boasts a history of exploration that dates back to the late 1970s. Additionally, Gunpoint acquired the project in 2010.

Under the previous arrangement, Newcrest could acquire up to a 75 per cent interest in Appaloosa by spending a cumulative USD$35 million on exploration and development. This also includes cash payments totalling USD$5 million to Gunpoint, and completing a minimum indicated resource estimate of 1.0 million gold ounces.

Over the past 18 months, the Australian miner has conducted a property-wide reconnaissance exploration program on Appaloosa, confirming the existence of a large, mineralized hydrothermal gold-bearing system.

The team’s surface exploration and initial drilling in two areas have identified a large potential hydrothermal cell related to and surrounding the Talapoosa deposit. Meanwhile, their reconnaissance work on Talapoosa has indicated potential extensions of the existing deposit in multiple directions.

Newcrest recently discovered an unexplored vein trend spanning a 450-meter strike length, featuring rock chip samples containing up to 4 g/t gold. Following the Newmont termination, Gunpoint will now advance the project independently.

Read more: Calibre Mining walks in lockstep with World Gold Council’s responsible mining principles

Read more: Mineral reserves at Calibre Mining’s flagship Nicaragua asset grow by 36%

The PEA projects a mine life of 11 years with 55K gold ounces per year

Before Newcrest’s involvement, Timberline Resources (TSXV: TBR) optioned the Talapoosa property from 2015 to 2018. During this time, Timberline completed a preliminary economic assessment (PEA) on the project, revealing an after-tax net present value of USD$136 million at a 5 per cent discount rate and an internal rate of return of 38.8 per cent, with a capital payback period of 3.1 years.

The PEA projected an open-pit mining operation with a life of 11 years, producing an average of 55,000 oz. of gold and 679,000 oz. of silver annually.

Furthermore, a revised NI 43-101-compliant mineral resource estimate issued in 2013 formed the basis of the study. This estimate reported measured and indicated resources of 1.0 million ounces of gold and 13.6 million ounces of silver contained within 31.3 million tonnes at grades of 1.11 g/t gold and 14.97 g/t silver.

Additionally, it reported 11.2 million tonnes of inferred resources grading 0.72 g/t gold and 6.65 g/t silver.

The Newmont Corporation’s strategy in Nevada focuses on sustainable mining practices, innovative technology adoption for efficient ore extraction, and comprehensive environmental stewardship to mitigate impacts on the surrounding ecosystems.

Meanwhile, Newmont isn’t the only company operating in Nevada.

In Nevada’s vibrant gold mining sector, Kinross Gold Corporation (TSX: K) (NYSE: KGC) and SSR Mining Inc. (TSX: SSRM) (NASDAQ: SSRM) (ASX: SSR) stand out as key players.

Kinross Gold enriches Nevada’s mining landscape through its operations at the Round Mountain and Bald Mountain mines, emphasizing efficient and responsible mining practices across its global portfolio. Meanwhile, SSR Mining Inc. operates the Marigold mine, one of the state’s oldest and largest gold mines, showcasing a commitment to safety and environmental stewardship.

Read more: Calibre Mining added to VanEck Gold ETF

Read more: Calibre secures commissioning contract for Valentine plant; signs gold supply deal with Asahi

Calibre appoints new VP of Operations

Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) is another company making big waves in the gold sector at large. It operates the Pan Mine in Nevada, the Limon mining complex in Nicaragua and the Valentine Gold Project in Newfoundland, Canada.

The company appointed Jason Cyr as Vice President of Operations for Canada and André Morneau as Process Manager for the Valentine Gold Mine in Newfoundland and Labrador.

With over 20 years of experience in operations and project development within the mining industry, Cyr has held significant positions before joining Calibre. He served as General Manager of Barrick Gold Corp’s (NYSE: GOLD) (TSX: ABX) Hemlo Operation and took on leadership roles at SSR Mining Company’s Seabee Gold Operation, Rio Grande Mining Company in Texas, USA, and Liberty Mines Inc. in Timmins, ON, Canada.

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 Calibre Mining is a sponsor of Mugglehead news coverage

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