North Bay Resources (OTC:NBRI) has entered into a joint venture earn-in agreement with Toiyabe Kona Exploration for a 50% stake in the Silver Strike Concessions in Lander County, Nevada.
The joint venture terms cite two phases, with the first requiring 10,000 ounces of silver or silver equivalent, or 2,500 tons of greater materials to be mined, milled, and processed within the first 12 months.
Phase two requires the same silver or silver equivalent output, otherwise an additional 5,000 tons of material to undergo the same processes across two years since commencement of works.
North Bay will be offered its 50% stake at the completion of phase two.
North Bay has the opportunity to earn its interest in the concessions sooner if the company spends greater than US$300,000 ($454,967) in related exploration and development costs, completing the earn-in agreement.
The venture will not be accessible to extend beyond a period of five years, offering both companies an even split of profits and material returned from the project, with North Bay acting as the operator.
The agreement offers the company claims in the X-Ray Mine, OK Mine, Dudley-B Shaft, and other surrounding mines, providing the Reese River District a historical production of 21.68 million ounces of silver.
The X-Ray Mine has a historical production of 1,072 ounces of silver, with distinct findings across two north and north-east leading veins running for 1,000ft at a depth of 200ft.
The OK Mine and Dudley-B Shaft also have a past production of 750 ounces and 500 ounces of silver respectively.
Write to Maddison Elliott at Mining.com.au
Images: North Bay Resources
