- Waseco Resources (WRI) has signed a deal with the SSR Mining to option its Battle Mountain Ridge gold property
- SSR Mining can acquire Waseco’s holdings in the property for C$2.1 million in exploration funding and $34 per ounce of measured resources
- That payment has a guaranteed floor of $1.35 million and a guaranteed ceiling of $8.1 million
- The company will also receive a one per cent net smelter royalty and a guaranteed cash payment of $136,000
- Battle Mountain Ridge borders two of SSR Mining’s other properties, with recent assays near the property borderline reaching as high as 5.19 grams per tonne gold over 94.5 metres
- Waseco Resources (WRI) is up 8.3 per cent and is trading at 6.5 cents per share
Waseco Resources’ (WRI) US subsidiary has entered into an option agreement with a subsidiary of SSR Mining for the Battle Mountain Ridge gold property in Nevada.
The Battle Mountain Ridge property is a 29-claim property sitting on the Battle Mountain-Eureka Trend. The property is adjacent to both of SSR’s properties in the region, the Marigold mine and the Trenton Canyon mine.
SSR will need to spend approximately C$2.1 million in exploration funding over the next five years and will assume all the carrying costs of the Battle Mountain property.
SSR may acquire Waseco’s interests by paying approximately $34 per ounce for every of gold in all resource discoveries on the property. This deal guarantees a minimum payment of $1.35 million and a maximum payment of $8.1 million.
Along with this, Waseco will receive a one per cent smelter royalty and a cash payment of approximately $136,000. Thus far, Waseco has completed some preliminary exploration work on Battle Mountain, which has shown the site hosts three gold zones.
Some historic drilling work on the project over the past 30 years has shown sporadic mineralised targets within these three zones.
Waseco has identified that Battle Mountain has a sulphide gold discovery that runs along its northern property boundary with SSR’s Trenton Canyon property.
This zone appears to be on trend with a recently announced discovery SSR made on its Marigold property. The Waseco zone is 1.5 kilometres from SSR’s discovery, where SSR reported grades at high as 5.19 grams per tonne gold over 94.5 metres.
President and CEO of Waseco, Richard Williams said the operations at the nearby Marigold Mine is a testament to the team’s understanding of the oxide gold ore environment in the area.
Waseco Resources (WRI) is up 8.3 per cent and is trading at 6.5 cents per share at 2:50 pm EDT.