Premier Gold Mines has entered into an agreement with Ely Gold Royalties to acquire a 100% interest in the Rodeo Creek Property located in the Carlin Trend of Nevada.
Image: Premier Gold Mines to acquire Rodeo Creek Property in Carlin Trend of Nevada. Photo courtesy of Premier Gold Mines Limited.
The Rodeo Creek Property is a 510 acre land package consisting of 31 unpatented claims strategically located adjoining Premier’s 40% owned South Arturo Property in the heart of the Carlin Trend, and approximately 10 kilometers northwest from Barrick Gold’s (“Barrick”) Goldstrike Operations (See Figure 1). The Project also abuts against Halliburton’s Rossi Barite mine at its north boundary.
Pursuant to the terms of the transaction, Premier will have the Option to acquire a 100% interest in the Project by making payments to Ely Gold in the amount of US$500,000 over a 5 year period and Ely Gold will retain a 2.0% Net Smelter Royalty.
The Rodeo Creek acquisition increases Premier’s exposure to one of the world’s most prolific gold districts, the Carlin Trend. The Carlin Trend is host to multiple mining operations owned by Newmont and Barrick and has seen production in excess of 150 million ounces.
Premier is currently participating in the construction of two new mining operations at its South Arturo joint venture that are located within three kilometers of Rodeo Creek. Production at South Arturo is anticipated to ramp-up in 2019 and the partnership is drilling multiple targets in an effort to increase reserves and resources.
The Rodeo Creek Property is strategically located along the Bootstrap Reef/Margin, is underlain by the same rock units as the mines in the area, and is host to multiple faults and dike swarms, similar to the nearby gold mines.
“This acquisition is consistent with Premier’s strategy of growing land positions in the heart of prolific gold districts”, stated Ewan Downie, President and CEO. “The Rodeo Creek Property has seen little exploration compared to the rest of the Carlin Trend and we are excited to get to work on this project”
Premier also announces the departure of Charlie Ronkos, Executive Vice-President, Development, Americas. Premier is thankful for his important input during the integration of the Mercedes Mine and his exploration efforts over the last two years.
Source: Company Press Release