Animas Resources (TSX-V: ANI) has signed a binding letter of agreement with Nevada Sunrise Gold Corp (TSX-V: NEV) to option into two gold properties in Nevada - the Golden Arrow and Kinsley Mountain. Animas will be the operator of both joint venture projects with the initial option to earn a 51% interest in each property.
“As is the case at Santa Gertrudis in Mexico, Golden Arrow has a NI 43-101 compliant resource and exceptional potential to expand the resource and discover new resources. Kinsley Mountain is an equally exciting Carlin-Like target that matches our growth strategy in precious metals”, Animas President and CEO Gregory E McKelvey commented.
The Golden Arrow gold property is located in the Nevada high desert approximately 60km east of Tonopah in Nye County. The recently consolidated property consists of 279 unpatented lode mineral claims and 17 patented lode mineral claims, spanning a total area of approximately 5,684 acres.
According to Animas, the property has a number of favorable attributes for mineral resource exploration with gentle topography, mild climate, available ground water, and close proximity to highways and towns. At Golden Arrow, historic exploration has resulted in the discovery, and subsequent drill-definition, of two centers of gold-silver mineralization. Nevada Sunrise has previously reported a 43-101 compliant measured and indicated resource for the property.
Animas can earn a 51% interest in the Golden Arrow Property by spending $3.5 million in exploration over three years, with the first $1 million being spent by the end of 2010. Animas can earn an additional 9% interest through spending a further $4 million. Furthermore the company has the right to earn up to a 75% interest by paying for and completing a Pre-Feasibility study.
Once Animas has earned the initial 51% interest, a formal joint venture will be formed between the two companies.
The Kinsley Mountain gold property, in eastern Nevada, is located between the towns of Ely and Wendover in Elko County. Kinsley Mountain consists of 141 unpatented lode mining claims, covering an area of approximately 2,807 acres. Previously, a former owner produced 134,777 ounces of gold at Kinsley Mountain between 1994 and 1999.
Gold mineralization occurs in Middle to Upper Cambrian-age sedimentary rock units including limestone, dolomite and shale, and according to Animas this mineralization exhibits characteristics similar to other sedimentary rock-hosted ‘Carlin-type’ gold deposits in Nevada.
There is a substantial technical archive for the property, which includes records for 1,156 drill holes, totaling 244,900 feet - with an average depth of only 212 feet.
Animas can earn a 51% interest in the Kinsley Mountain property by spending $1.5 million in exploration expenditures over three years, with $200,000 required by the end of 2010. Animas can subsequently take its stake to 65% by spending a further $3 million, and it also has the right to earn up to 75% interest by paying for and completing a Pre-feasibility Study.
As with the Golden Arrow, a formal joint venture will be formed once Animas has earned its 51% interest.
“Animas has reviewed, and continues to review, merger and joint venture opportunities with compatible companies with properties complementary to our growth strategy", McKelvey added.
Animas also announced a non-brokered private placing to raise gross proceeds of $1.4 million, through the issue of 4 million units, comprising one share and one half warrant, at $0.35 per unit. The proceeds will be used for drilling at the company’s Santa Gertrudis property in Mexico, the Golden Arrow property and the Kinsley Mountain property, and for general corporate purposes.
Disclosure: The author holds no positions in the company