Fremont’s Gold Bar project is a former mine in the Gold Bar District in Eureka County, Nevada, an active mining district within the Battle Mountain-Eureka Trend. The district contains several Carlin-style sediment-hosted gold deposits, including McEwen Mining Inc.’s (“McEwen”) Gold Bar development project, which is scheduled to produce 62,800 oz Au/annum, at US$770/oz, starting in early 2019.
Gold Bar is part of the original Gold Bar mining complex operated by Atlas Precious Metals Inc., from 1986-94, and produced 286,354 ounces of gold from 3,986,000 tons of ore. In addition, Gold bar hosts the Millsite deposit, which hosts a historic resource totaling 147,700 ounces of gold 1.62 Mt @ 2.57 g/t Au).
A recently completed soil sampling program, based on a new structural interpretation, has identified coincident gold and mercury geochemical anomalies and suggests that gold mineralization related to the historic Gold Bar mine may extend to the southeast (see news release dated October 12, 2018).
Geochemical sampling has defined coincident gold and mercury soil anomalies, approximately 2 x 1 km in size, in the southeastern portion of the Gold Bar project. Mercury is an important pathfinder for gold in Carlin-type deposits.
The gold and mercury anomalies occur SE of the historic Gold Bar mine in areas thought by Fremont to be underlain by the Devonian Denay Limestone and the Mississippian Webb Formation, both known to host gold mineralization in the Gold Bar district.
The soil anomalies suggest NW-SE and NNE-SSW mineralized structures intersect in the areas of the soil anomalies, which were never drilled by previous operators.
Fremont plans to drill test these anomalies in early 2019 immediately upon completion of permitting.
Fremont has the option to earn a 100% interest in Gold Bar by making payments totalling US$1,000,000 to Ely Gold Royalties over a five-year period (see news release dated September 12, 2017). The option is subject to a 2% net smelter return royalty, which can be reduced to 1% for US$5,000,000.