ELKO, NEVADA — Fremont Gold (TSXV: FRE; US-OTC: USTDF) is drilling 1,000 reverse circulation (RC) metres at its Gold Bar gold project, a two-hour drive from Elko, Nevada. It’s targeting a potential southeast extension of the past-producing Gold Bar pit, in an area that has never been drilled.
It intends to follow up by diamond drilling 500 metres at its nearby Gold Canyon gold project. Both properties are part of the Battle Mountain-Eureka trend and are under option from Ely Gold Royalties (TSXV: ELY; US-OTC: ELYGF). They’re also both very close to McEwen Mining’s (TSX: MUX; NYSE: MUX) Gold Bar gold mine construction project. Gold Canyon, in particular, sits on inlying claims next to McEwen’s Gold Bar mine.
To earn a 100% interest in its own Gold Bar project, Fremont will pay Ely US$1 million over five years. Ely keeps a 2% net smelter return royalty that Fremont can halve for US$5 million.
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