How Will SNX Unlock Gold Riches in New Pass Tailings and Mines?

Full Ownership of New Pass Mine

In a significant strategic move, Sierra Nevada Gold Inc. (ASX – SNX) has completed the outright purchase of the New Pass Gold Mine claims in Nevada, USA. This acquisition extinguishes a long-standing 20-year lease and royalty agreement, granting SNX full control over the mine, its infrastructure, and stockpiles within the broader New Pass Project area. The move marks a pivotal step for the company, positioning it to potentially restart production at a historically high-grade gold operation.

Encouraging Tailings Sampling Results

During the June quarter, SNX conducted detailed auger sampling across four historic tailings dams at New Pass. Despite the auger's 2-meter depth limitation, assays revealed gold grades reaching as high as 4.09 grams per tonne, with an overall average of 1.55 g/t across 113 samples. Tailings Dam 1, the largest and deepest, showed an average grade of 1.87 g/t and is estimated to be up to 4 meters deep, indicating substantial potential for further mineralised material at depth. These results have prompted SNX to explore advanced processing techniques to recover residual gold from these tailings.

Advancing Bulk Sampling and Underground Mining

Building on the encouraging sampling data, SNX is preparing to initiate a bulk sampling program targeting high-grade veins within the Superior Mine, part of the New Pass complex. The company has completed geotechnical assessments and 3D LiDAR surveys to inform development planning. Permitting processes are underway, with expectations to secure necessary approvals within six months. The goal is to delineate vein continuity and assess commercial viability for reopening underground operations.

Exploration Progress at Warrior Gold Project

Beyond New Pass, SNX continues to advance exploration at its Warrior Gold Project. Fieldwork during the quarter focused on six key targets identified through geochemical and spectral analysis. The company confirmed the continuity of several mineral trends and identified structural features that may serve as deep fluid conduits, potentially linking multiple mineralised zones. Analytical results are pending, but early observations suggest a geologically young hydrothermal system with promising exploration upside.

Corporate and Financial Updates

On the corporate front, SNX appointed Sophia Qing Huang as Company Secretary, replacing Tony Panther. The company also held a successful Annual General Meeting, passing all resolutions. Financially, SNX reported exploration expenditure of approximately US$237,000 for the quarter and maintains a cash balance of US$726,000, sufficient to fund operations for over 1.6 quarters. Management remains confident in its ability to manage expenditures and raise additional capital if necessary.