IDAHO – Ely Gold Royalties
announced this week that, through its wholly owned subsidiary Nevada Select Royalty, it has entered into an option agreement with DeLamar Mining Company, a wholly-owned subsidiary of Integra Resources
, to option a 100% interest in a group of leased lands situated in Owyhee County.
The lands belong to what is known as the War Eagle property and they are situated 3 km southeast of Integra's 100% owned Florida Mountain deposit and 9 km east of their DeLamar deposit. Past production on these high grade vein systems has outlined strike lengths in excess of 1 km and depth extents of up to 750 metres.
The project sits on the Owyhee Mountains near the east margin of the mid-Miocene Columbia River-Steens flood basalt province and the western margin of the Snake River Plain.
"The discovery of gold in Jordan Creek in 1863 led to the first rush of exploration and mining in and around Silver City, Idaho. This first era of mining expanded from placer mining to underground operations that focused on high grade veins within the Owyhee Mountain range," Ely Gold’s press statement reads. "War Eagle Mountain provided the first, significant production within the Silver City district after the discovery of the Oro Fino vein system on top of War Eagle Mountain."
Ely Gold's president and CEO, Trey Wasser, said the company's goal is to facilitate Integra's consolidation of the DeLamar District. "We look forward to Integra's follow-up drill program on the previously released high grade, historic drill results at War Eagle," Wasser said in the statement. "The Integra team's deep understanding of the local geology and their extensive land package within this important historic gold-silver district makes this another very valuable addition to our royalty-option portfolio. Ely Gold is pleased to once again assist a top tier U.S. exploration and development company consolidate a strategic property into their flagship property."
Under the terms of the agreement, Nevada Select will transfer its right, title and interest in the state lease, subject to a 1% net smelter return on future production from the deposit payable to Ely Gold, to Integra.
Integra, on the other hand, will pay Nevada Select $200,000 over a period of four years in annual payments.
This story first appeared on www.Mining.com.