NEVADA – Vancouver-based Northern Empire Resources
has offered to buy a 100% in the Sterling gold mine from a subsidiary of Imperial Metals Corp
., also headquartered in Vancouver. Sterling is a heap leach operation located 185 km northwest of Las Vegas in Nye County.
The Sterling mine operated as an underground and open pit mine from 1980 to 2000. Imperial reopened the underground portion of the project in 2012 to mine the 144 zone. Mining ceased in 2015, but recovery of residual gold from the heap continues. Imperial had plans to develop another open pit project and new heap leach pad. The permit for the next phase of operation was issued by the Bureau of Land Management in May 2016.
The purchase price of the Sterling property will be US$10 million cash plus 5 million shares of Northern Empire. Imperial will also be granted 2.0% net smelter return on the parts of the property that are not currently burdened by a pre-existing NSR. An arrangement is also proposed whereby Northern Empire, should it continue using the technology developed at Sterling gold, will reimburse the Imperial subsidiary.
Northern Empire president and CEO Michael G. Allen said in a release the exploration potential of the Sterling land package is good given its location and the lack of systematic exploration in 20 years.
Please see www.NorthernEmp.com
for the news release dated Feb. 15, 2017.
[caption id="attachment_1003717197" align="aligncenter" width="300"] Crushing ore for the heap leach at the Sterling gold mine. (Photo: Imperial Metals)