Mammoth Minerals has reached an agreement to acquire the Imperial gold mine located near its flagship Excelsior gold project, in an effort to strengthen its Nevada portfolio.
The acquisition has increased the footprint of the Excelsior gold project landholding to 135 square kilometres,
with its existing projects joined into a contiguous land package.
“The Imperial Mine is located just five kilometres from our flagship Excelsior Project, and has a similar history of high-grade production and significant results from drill advanced targets,” said Mammoth Mineral Managing Director Glenn Poole.
“We have staked the land between Excelsior Project and Imperial which contains numerous shafts and interesting alteration features evident from satellite imagery. Our total land holding has now expanded to 135 square kilometres.
“The critical importance of this large, consolidated land package is having a first mover advantage for what appears to be a large district scale Carlin Type target.”
The Imperial gold mine has shown historic significant drilling results including 13.72 metres at 4.74 grams per tonne from 30.48 metres.
The mine was first developed in the 1920s, with limited production records indicating that 10,000 tones was mined at 0.5 ounces per tonne.
An expert Carlin Type geologist has confirmed the presence of gold in decalcified limy rocks underground and in sediments, supporting the potential for “Carlin-style” mineralisation at Imperial.
Mammoth agreed to pay a US$50,000 option fee within 60 days and make an annual AU$50,000 payment as an advanced royalty on each anniversary of completion.
The vendor will retain a 3 per cent smelter royalty, with Mammoth retaining a 1 per cent net smelter royalty buyback right for a consideration of U$1.5 million.
Looking ahead, Mammoth will implement a staged exploration program consisting of systematic mapping and channel sampling, surface mapping and drill planning and budgeting.
