Canadian Mining Journal

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GOLD: Contact Gold acquires past-producing gold project



Nevada – Contact Gold announced that it signed a purchase option agreement with Ely Gold Royalties to acquire an undivided 100% interest in the past producing Green Springs gold project, located in White Pine County.

In a press release, Contact said that this acquisition adds a second Carlin-type gold system to the property portfolio.

“We are thrilled to add the Green Springs gold project as a complement to our flagship Pony Creek project,” Matt Lennox-King, president and CEO of Contact Gold said in the media brief. “The acquisition of a 100% interest in a high quality, past producing Carlin system with a wealth of compelling historical gold intercepts, represents a clear opportunity to create value.”

Green Springs is located at the southern end of Nevada’s prolific Carlin Trend, 60 km southwest of the historic mining centre of Ely, in a region hosting numerous producing and past producing Carlin-type gold deposits.

The project hosts a heap leach gold mine that, in the late 1980s, produced 72,000 oz. of gold from a series of shallow pits, less than 100 metres deep, at an average grade of 2.32 g/t gold.

The agreement to acquire the property led Contact and its U.S. operating entity, Clover Nevada II LLC, to issue to Ely Gold’s subsidiaries 2 million common shares of Contact Gold, pay $25,000, and reimburse prepaid claims fees relating to Green Springs.

Contact also has to make three payments of $50,000 every year up till the third anniversary of the purchase option agreement, and a $100,000 payment on the fourth anniversary.

This story first appeared on www.Mining.com.