Sentinel Metals (ASX:SNM) has completed its acquisition of the Big Springs Gold Project in Nevada, US, from Capricorn Metals (ASX:CMM), expanding its US gold portfolio to almost 2 million ounces.
The company acquired 100% of Big Springs after receiving shareholder approval and completing a $15 million placement at $0.58 per share.
Sentinel paid $8.5 million in cash and issued 8.62 million shares valued at $5 million. The shares are subject to 12 months of voluntary escrow.
A further $12.5 million may become payable if specified resource, share price or transaction milestones are achieved.
Big Springs hosts a mineral resource estimate (MRE) of 15.5 million tonnes @ 2 grams per tonne gold (Au) for 1.01 million ounces (Moz). This comprises 129,000 ounces in the measured category, 426,000 ounces indicated and 459,000 ounces inferred.
Managing Director Matt Herbert says the transaction secures an advanced gold project with exploration upside in Nevada’s Independence Trend.
“The completion of the Big Springs transaction represents an important milestone for Sentinel, securing 100% ownership of an advanced, large-scale gold project in the prolific Independence Trend of north-east Nevada,” Herbert says.
The 93km² project has a plan of operations permitted for open pit and underground mining. Historical operations produced about 386,000 ounces of gold from seven open pits between 1987 and 1993.
Sentinel says it is finalising plans for an initial 10,000m drilling campaign targeting extensions to ‘high-grade’ mineralisation at North Sammy, which sits on a granted mining lease.
Historical drilling at North Sammy returned 18.3m @ 33.4g/t Au from 129.5m, with the mineralised system remaining open at depth.
The company says it is also considering an expansion of the existing mine plan of operations to enable drilling across broader district-scale targets.
Sentinel notes Big Springs complements its Columbia Gold-Silver Project in Montana, which hosts a separate MRE containing 920,000 ounces Au and 3.1Moz silver. Together, the projects contain about 1.93Moz of gold.
Write to France Pinzon at Mining.com.au
Images: Sentinel Metals
