Sierra Nevada Gold (ASX: SNX) is set to acquire the New Pass gold mine in the US for US$250,000, effectively extinguishing a previous lease and purchase option agreement while attaching a royalty over 12 claims. The agreement stipulates five annual payments of US$50,000, granting Sierra Nevada full title to the existing underground mine, its infrastructure, property, and on-site stockpiles. This acquisition is a strategic move aimed at expediting the evaluation of potential trial mining proposals, specifically for bulk sampling of the Superior and Thomas W high-grade veins, with the ultimate goal of restarting production.
The company’s immediate work program involves initial testing of the Superior vein to confirm ore body grades and to formulate a comprehensive development plan for the mine. The New Pass mine, which ceased operations in 2012, reported an average grade of 17 grams per tonne of gold during its intermittent production history. Sierra Nevada’s confirmatory drilling in 2022 intersected 1.22 meters at 26.7g/t gold from 186.53m, indicating continuity down-dip below existing stoping at Superior. Executive chair Peter Moore views the acquisition as a positive step, citing preliminary work and underground surveys that suggest the mine’s potential for re-opening. The company has engaged geotechnical consultant Call & Nicholas for a ground condition assessment and has commissioned LiDAR surveying to create 3D models of accessible workings to optimize drilling campaigns. Remnant mineralization sampling at the Superior Level 4 adit has yielded high-grade assays, including 20.1g/t and 16.95g/t gold.
