Aim-listed Great Western Mining Corporation (GWMO) has signed an option agreement with Nevada Select Royalties to acquire 48 mineral claims in Nevada, which are prospective for gold and silver.
Nevada Select is a subsidiary of Ely Gold Royalties.
Surface exploration on the mineral claims, collectively the Olympic gold project, have identified at least four main gold and silver targets.
The Olympic gold project is located within the Bell mining district, covering 825 acres.
GWMO believes that the project represents a highly attractive addition to its existing assets in Nevada and a building block for future growth of the company in its pursuit of precious metals mining.
The company has six existing lode claim groups in Nevada, with the potential for gold, silver and copper.
GWMO says the Olympic project can be serviced by the company’s existing facilities and personnel in Nevada.
Further, the company states that the project encompasses a large volcanic-hosted epithermal precious metal system that includes both high-grade veins and lower grade disseminated mineralisation.
Between 1917 and 1942, a shallow underground mine on the property produced about 30 000 oz of gold and 34 000 oz of silver from only 35 000 t of material, at grades of 25 g/t gold and 30 g/t silver.
The payment under the option agreement for the Olympic project area involves $150 000 paid over four years in incremental amounts.
GWMO will become responsible for lease costs and will have access to all historical data on the property.
There are no work commitments associated with the option agreement after the final payment.
GWMO also has the right to relinquish the option agreement without penalty; however, should a commercial mining project proceed, the company has to pay a net smelter return royalty of 3% on all production.