Golden Minerals Company takes pleasure in announcing that it has signed an earn-in agreement with Golden Gryphon Explorations for the Sand Canyon project in northwestern Nevada, where a large unexplored system of epithermal veins has been identified by surface work.
The project includes 527 claims totaling about 16 square miles. It is situated 50 miles northwest of Winnemucca and 18 miles northwest of the historic Sleeper Gold Mine that was operated by Amax Gold Inc. and generated about 1.7 million ounces of gold and 2 million ounces of silver from 1986 to 1996.
Initial sampling and mapping carried out by Golden Gryphon and verified by Golden Minerals have found many sets of epithermal veins on the property revealed at a high level and generally trending north to slightly northeast.
Sand Canyon is an exciting prospect that hasn’t been drilled despite being located in an area of several major modern gold mines. We are optimistic about the strength of the epithermal system that is expressed at surface by clear geochemical anomalies associated with high-level quartz veining and breccias. This is an excellent exploration-stage project with multiple targets that appear to be similar in surface expression to the discovery outcrops related to the Sleeper Mine. We anticipate moving rapidly through the targeting stage and expect to begin drill testing late this year. I am quite pleased to be exploring in Nevada again, particularly at this highly prospective property.
Mr Warren Rehn, President and Chief Executive Officer, Golden Minerals
About Sand Canyon
Golden has the power to earn 60% interest from the Sand Canyon project with the expenditure set at US$2.5 million in exploration expenses for 4 years, with guaranteed minimum expenditures of US$0.5 million in the first year. For continuous earning of interest from the project, Golden ought to not only spend at least US$0.75 million in the second and third years and US$0.5 million in the last year but also drill at least 5000 feet of core or 10,000 feet of reverse circulation or both by the end of the second year. Golden paid US$25,000 cash and US$50,000 in reimbursed exploration expenditures to buy the option. It will make staged payments of an extra US$135,000 (US$35,000 in 2020, US$50,000 in 2021, and US$50,000 in 2022) on the following three anniversaries of the agreement.