OceanaGold walks away from American Pacific’s Nevada project

14th January 2020 By: Mariaan Webb - Creamer Media Senior Deputy Editor Online

Midtier gold miner OceanaGold has withdrawn from an earn-in joint venture (JV) over US-based gold explorer American Pacific Mining’s Tuscarora project, in Elko, Nevada, having spent C$1.26-million on exploration between April and December last year.

During that time, Oceana completed 2 298 m of drilling in a seven-hole drilling programme. The miner outlined eight new target areas on the property and drilled only two of the eight during the 2019 drilling programme.

American Pacific said on Monday that, despite structural hits occurring and gold values exceeding 3 g/t in a previously undrilled area, Oceana had given notice that it would not be proceeding with an earn-in JV.

“The interpretation of the geophysical data led the OceanaGold team to make the decision to test possible vein controlling structures with a few deeper holes. Our interpretation is slightly different and we are pleased that they encountered a 3.47 g/t gold intercept in an area of the district that has never been drilled before. This is exciting for two reasons. One, this represents a potential new vein set; and two, the depth of the intercept is at 384 m to 385 m, which is well below the depth of any other intercept within the land package.

“We will now take the time to evaluate all of the recently received data and plan the next stages of exploration at Tuscarora, with the added benefit of already having six untested target areas to follow up on,” said APM president Eric Saderholm.

APM has received the data that OceanaGold compiled over the last nine months.

Novo Resources has also extended the property payment due on January 20, for $125 000. A revised payment of $150 000 is due a year later.

AMP CEO Warwick Smith said that OceanaGold’s geophysical data had added significant value to the property.

“APM is happy to have 100% of this high-grade epithermal project, and the board remains positive that Tuscarora has substantial merit. In particular the East Pediment zone and targets in the west of the property remain a priority for further exploration. In addition, I would like to thank the team at Novo Resources for their continued support in the advancement of Tuscarora.”