SNX Acquires New Pass Mine Claims for US$250,000, Eyes High-Grade Gold Production
Sierra Nevada Gold (ASX: SNX) has acquired 100% ownership of the historic New Pass Gold Mine in Nevada, extinguishing royalties and setting the stage for trial mining of its high-grade Superior Vein.
- Acquisition of key patented and unpatented claims at New Pass Mine
- Extinguishment of long-term lease and royalty obligations
- 100% ownership of mine infrastructure and stockpiles
- Plans for bulk sampling and underground drilling targeting Superior Vein
- Purchase price of US$250,000 payable over five years
Full Control Over Historic High-Grade Gold Asset
Sierra Nevada Gold Inc (ASX: SNX) has taken a decisive step in advancing its Nevada portfolio by executing an agreement to purchase key claims at the New Pass Gold Mine. This acquisition extinguishes a long-standing lease and royalty arrangement, granting SNX 100% ownership of the mine’s existing infrastructure, property, and stockpiles. The claims include eight patented and four unpatented parcels previously leased from the family of Don Jung, the mine’s historic operator.
Unlocking Potential for Near-Term Production
The New Pass Mine is renowned for its high-grade gold veins, historically averaging 17 grams per tonne, with the Superior and Thomas W veins being the primary producers. SNX plans to expedite evaluation of trial mining proposals, focusing initially on bulk sampling from the Superior Vein accessible via the level 4 adit. This approach aims to confirm ore grades and establish a revenue stream, potentially reactivating gold production from existing underground workings.
Robust Infrastructure and Strategic Location
The property boasts significant infrastructure, including a four-storey milling facility, a five-stamp crushing battery, stockpiles, and mechanical equipment, all situated within SNX’s broader New Pass Project area. Located just 12 kilometers from a sealed highway and 35 kilometers from Austin, Nevada, the site benefits from nearby high-tension power lines and adequate water supplies, factors that support efficient mining operations.
Geotechnical and Geological Foundations
SNX has conducted detailed underground surveys, LiDAR mapping, and commissioned geotechnical assessments to inform development planning. Previous drilling intersected high-grade gold, including a notable 1.22 meters at 26.7 g/t gold below the existing workings, extending the known Superior Vein depth by approximately 80 meters. Government permitting for underground drilling and bulk sampling is underway, with approvals expected within six months.
Financial Terms and Strategic Outlook
The purchase price of US$250,000 is payable over five years in annual installments of US$50,000, with the first payment made upon agreement execution. This acquisition eliminates all net smelter return royalties on the claims, enhancing SNX’s control over future revenues. Executive Chairman Peter Moore highlighted the acquisition as a positive milestone, emphasizing the company’s intent to rapidly advance evaluation and potential production at New Pass.
Bottom Line?
With full ownership secured, SNX is poised to transform historic high-grade veins into a new chapter of gold production—pending permits and sampling results.
Questions in the middle?
- How soon will SNX receive the necessary permits to commence underground drilling and bulk sampling?
- What are the projected production volumes and grades if trial mining confirms historic results?
- How will the elimination of royalties impact SNX’s financial outlook and project economics?
