SNX Advances New Pass Mine Underground Access with Strong Metallurgical Results

Underground Access Progress and Drilling Plans

Sierra Nevada Gold (ASX:SNX) has initiated underground refurbishment at its New Pass Mine in Nevada, focusing on the Superior Level 4 Adit. The rehabilitation of portals and site preparation are designed to facilitate approximately 500 metres of underground drilling from five stations along the high-grade Superior Vein. This program aims to refine the geological model, confirm grade continuity, and inform mine design ahead of potential trial mining.

Crucially, all activities occur on 100%-owned patented mining claims, granting SNX freehold tenure. This ownership significantly reduces permitting complexity and enhances operational flexibility compared to unpatented federal claims, a strategic advantage in Nevada’s regulatory environment.

Metallurgical Test Work Validates Processing Simplicity

Metallurgical testing by Kappes, Cassiday & Associates on a composite quartz vein sample from the Superior Adit reveals exceptional gold recovery characteristics. The sample, with a head grade of 14.27 g/t gold and 19.07 g/t silver, achieved up to 97% total gold extraction using a conventional gravity plus cyanide leach flowsheet. Notably, gravity concentration recovered nearly 90% of the gold into a concentrate representing less than 1% of the feed mass, indicating a strong free gold component amenable to early-stage recovery.

The gravity concentrate assays reached grades as high as 30,690 g/t gold, underscoring the presence of coarse free gold. Subsequent cyanide leaching of gravity tailings extracted approximately 90% of residual gold, confirming the mineralisation’s compatibility with standard processing methods. Comminution tests also support processing via conventional crushing and grinding circuits.

Historical Context and Exploration Potential

The New Pass Project sits within Nevada’s prolific Austin Trend, parallel to major gold belts like Carlin and Battle Mountain. Historical mining at New Pass produced around 40,000 ounces at an average grade of approximately 17 g/t gold, with mineralisation exploited to depths near 150 metres. Rock chip sampling by SNX and previous operators has returned multiple ore-grade results ranging from 2.1 to 20.1 g/t gold, consistent with the bonanza grades historically mined.

SNX’s ongoing work builds on prior exploration, including mapping, geochemical sampling, and drilling, which collectively underpin the current targeting strategy. The project hosts about 6.5 kilometres of largely underexplored strike, with potential for both high-grade vein extraction and broader district-scale discoveries.

This development trajectory aligns with SNX’s broader strategy, which recently included the establishment of a Saudi subsidiary to accelerate exploration at its As Safra copper-gold project. The company’s expanding footprint and diversified portfolio position it well for growth across multiple fronts, as highlighted by its recent Saudi subsidiary launch.

Next Steps and Market Implications

Following the completion of underground refurbishment and drill cuddy development, SNX plans to commence its underground drilling program targeting zones immediately below Level 4. The 500-metre drilling campaign is expected to refine the geological model and support mine planning for trial mining. The company has committed to updating the market as key milestones are achieved.

While metallurgical results are encouraging, they are based on a single composite sample and remain preliminary. Further variability testing and pilot-scale studies will be necessary to confirm processing parameters and support future resource estimation. Similarly, the drilling program is early-stage and does not yet define a mineral resource.