The Kelly Creek Project is located along the Battle Mountain - Eureka Gold Trend within the larger Kelly Creek Basin
Nevada Exploration signs LoI for with Austin Gold for its Kelly Creek Project (Credit: Pixabay/Free-Photos)
Canada-based Nevada Exploration (NGE) has signed a Letter of Intent (LOI) with Austin Gold for an earn-in and joint venture agreement on its district-scale Kelly Creek Project within the Kelly Creek Basin in north-central Nevada.
Under the terms of the LOI, Austin will have to spend $5,000,000 in four years for the rights to earn 51% interest in the joint venture. Of the total expenditure, $1,000,000 is a firm commitment.
In addition, Austin is also expected complete a $500,000 private placement into NGE under the LOI.
The earn-in and joint venture agreement and the private placement are subject to receipt of all necessary regulatory
Austin executive chairman Joe Ovsenek said: “With multi-deposit potential and a world-class address, Kelly Creek is one of only a handful of district-scale size properties with Carlin-type potential not currently controlled by the majors.
“We are excited to team up with Nevada Exploration to unlock Kelly Creek’s potential. At Austin, our focus is on grassroots exploration within the prolific gold-belts of Nevada, and Kelly Creek is right in our wheelhouse.”
The project is located in the Kelly Creek Basin, along the Battle Mountain, Eureka Gold Trend
The Kelly Creek Project is located along the Battle Mountain – Eureka Gold Trend within the larger Kelly Creek Basin, bounded by gold deposits towards north and south, representing more than 70 million ounces of gold along the periphery of the basin.
The project comprises a combination of unpatented mining claims held by NGE through its wholly-owned subsidiary Pediment Gold (PGL), spanning 24 km2, and unpatented mining claims leased by PGL from a third party.
The interior of the Kelly Creek Basin is said to have been limited systematic exploration activity to date, though it is located close to significant mineralisation.
NGE president James Buskard said: “Kelly Creek is the first place we integrated our full suite of hydrogeochemistry exploration technologies to evaluate a highly-prospective, covered valley basin to search for new district-scale Carlin-type mineral systems.
“As we’ve shared, we believe our results to date confirm the presence of the critical components needed to host a world-class, 5-10 Moz gold deposit, and suggest that the gold-bearing mineral system at Kelly Creek is a likely northern extension of the system responsible for mineralization at the nearby Marigold and Lone Tree deposits.”