- Nevada Exploration (TSXV:NGE) has revealed its exploration partner has acquired 51 per cent of the company’s Kelly Creek Gold project in Nevada
- Austin Gold Corp was required to spend C$5 million on the property, including a $1 million firm commitment to Nevada Exploration
- The two companies sign a joint venture agreement to continue progressing the Kelly Creek Project
- Austin can still acquire a further 19 per cent of the project by producing pre-feasibility study for the project
- Nevada Exploration (NGE) is up 3.3 per cent and is trading at 16 cents per share
Nevada Exploration’s (TSXV:NGE) partner, Austin Gold, has acquired 51 per cent of the company’s Kelly Creek Gold project in Nevada.
Nevada Exploration signed an earn-in option agreement with Austin Gold, in which Austin could acquire up to 70 per cent of the Kelly Creek Project by hitting certain payment and exploration milestones.
The agreement gave Austin the right to earn 51 per cent of the project if Austin spent $5 million over four years, of which $1 million was a firm commitment. Now that Austin has made it to this point in the deal, the company’s signed a joint venture agreement, to further develop the site.
Austin Gold has the option to acquire a further 19 per cent of the project if it delivers a pre-feasibility study.
Nevada Exploration’s President James Buskard said Kelly Creek was the first place the company fully integrated its hydrochemistry exploration technologies to evaluate a highly prospective valley-basin.
“We believe the combined results of our drilling, geophysics, and geochemistry programs have confirmed the presence and necessary scale of the critical components n needed to host significant carlin-type mineralization, and suggest that the gold-bearing system at Kelly Creek is a likely northern, covered extension of the system responsible for mineralization at the nearby marigold and Lone Tree deposits.
“With our current focus on our flagship South Grass Valley project, we’re pleased to partner with such an experienced and technically capable team to continue to advance Kelly Creek through the next stages of exploration.
“This partnership gives our stakeholders the significant benefit of participating in multiple opportunities for discovery as both projects advance in parallel” he said.
Nevada Exploration (NGE) is up 3.3 per cent and is trading at 16 cents per share at 11:15 am EDT.