Auric Mining, which engages in mineral and natural resource production as an investment and management company, reported today signing of a letter of intent (LOI) to acquire the Carson City, Nevada-based gold developer Homestead Tonopah Gold LLC, a Nevada Corporation.
This is a major move for AUMY, which pursues a strategy of copiously analyzing extant proven properties for acquisition and joint venture, and will add substantially to the Company’s already strong land position, primarily consisting of the Dolly Gold Showing in Saskatchewan (some 1,100 acres with assays ranging up to 0.48 oz/ton Au) and the Dog Lake Project in Wawa, Ontario (proven and probable reserves of some 1M tonnes grading 8.55 g/t Au).
Homestead Tonopah owns a 50% interest in an incredibly promising gold property near Tonopah, Nevada in the Walker Lane region of the Basin and Range physiographic province. Some 100k ounces of gold were pulled out back in the 1990s by Phelps Dodge via some roughly, preliminary development at the site and the location is sandwiched between three well established mineral deposits (either abutting the property or within a distance of two miles). The excellent mineralization at the site makes it an extremely attractive domestic acquisition target for the Company.
Given the clear mineralization basis of the geology evident from historical work and nearby established deposits, the Company is looking to plant a firm foothold in Nevada at the site, perhaps gobbling up adjacent holdings as well in an effort to secure what could collectively be a an ore body over containing over 500k ounces Au. With gold spot trading at around $1565 an ounce today and the pro-mining attitude of Nevada, complete with well laid logistics for extraction, this play by AUMY appears to be a solid move in the right direction for the Company’s shareholders.
Historical production at the Tonopah site bottomed out in gold after a great deal of investment, but production was halted back in the late 90’s due to the falling price of gold. This is exactly the kind of previously developed site with proven resources that AUMY loves and we should expect to hear more from the Company soon regarding developments in the area.