London-listed Hochschild Mining will start an initial exploration programme at the Antelope project, in Nevada, US, having secured an option from EMX Royalty to earn 100% of the gold project.
The agreement, announced on June 3, provides EMX with work commitments and cash payments during Hochschild’s earn-in period, and upon earn-in, a 4% net smelter return (NSR) royalty, yearly advanced royalty payments, and milestone payments.
The Antelope project is located in the Illipah mining district of western White Pine county, Nevada.
EMX recognized potential extensions of Carlin-style mineralisation along anticlinal folds and other structures in prospective host rocks within the greater Illipah mine area. The project was acquired in late 2018 through the staking of open ground as part of the EMX’s regional generative gold programme and is now advancing under the option agreement with Hochschild.
Pursuant to the agreement, Hochschild can earn 100% interest in the project by making option payments totalling $600 000, completing $1 500 000 in exploration expenditures before the fifth anniversary of the agreement, and reimbursing EMX the previous year’s holding costs.
Upon exercise of the option, EMX will retain a 4% NSR royalty on the project, of which Hochschild may purchase up to 1.5% of the NSR royalty. The first 0.5% of the NSR royalty can be purchased by Hochschild for 300 oz of gold.