Minaurum Gold Inc. Acquires Lone Mountain Project to Enhance Mining Portfolio and Value
- Minaurum Gold Inc. acquires 100% interest in the Lone Mountain project, enhancing its mining portfolio in Nevada.
- The project has an inferred resource of 3.26 million tonnes, with promising drilling results indicating economic viability.
- The acquisition supports Minaurum's growth strategy, broadening its resource base and aligning with market conditions for base and precious metals.
Minaurum Gold Inc. Enhances Portfolio with Acquisition of Lone Mountain Project
Minaurum Gold Inc. has taken a significant step in expanding its mining portfolio by exercising an option to acquire a 100% interest in the Lone Mountain carbonate replacement deposit (CRD) project, situated in the prolific Battle Mountain-Eureka Trend of Nevada. This strategic acquisition aligns with the company's growth ambitions and adds a project with established mineral resources to its portfolio. The deal, initially outlined in an agreement with Nevada Zinc Corp. dated July 24, 2024, underscores Minaurum's commitment to leveraging high-potential mining assets.
The Lone Mountain project boasts a historic inferred mineral resource estimate of approximately 3.26 million tonnes, with an average zinc grade of 7.57% and lead at 0.70%. Additionally, the project has shown promising drilling results, including a notable intersection of 118.87 meters grading 9.58% zinc and 0.74% lead. These figures indicate the potential for economically viable extraction, particularly given the results of a Preliminary Economic Assessment (PEA) from June 2019, which projected an attractive internal rate of return of 35% after tax. This robust economic potential makes Lone Mountain a key asset in Minaurum's strategy to enhance shareholder value.
Minaurum's President and CEO, Darrell Rader, highlights the project's additional prospects for silver and gold mineralization, marking it as a crucial component in the company’s growth strategy alongside its flagship Alamos silver project. The acquisition not only broadens Minaurum's resource base but also positions the company to capitalize on favorable market conditions for base and precious metals. The terms of the acquisition involve a cash payment of $100,000 and the issuance of common shares valued at $1 million to Nevada Zinc, reflecting the deal's strategic importance and Minaurum's focus on optimizing its asset portfolio.
In addition to the Lone Mountain acquisition, Minaurum Gold Inc. continues to explore synergies between its projects, aiming to enhance operational efficiency and resource extraction potential. The company is poised to benefit from the ongoing development of its other projects, ensuring a diversified approach to mineral exploration and production.
As Minaurum moves forward with the Lone Mountain project, it remains subject to customary conditions, including the approval of the TSX Venture Exchange. The acquisition signifies Minaurum's proactive approach to expanding its mineral resource portfolio, crucial for maintaining competitiveness in the evolving mining sector.
