Fremont’s Gold Canyon 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 Canyon is part of the original Gold Bar mining complex operated by Atlas Precious Metals Inc., from 1986-94, and was one of five satellite pits to the original Gold Bar mine, which Fremont also controls. Over 41,000 ounces gold was produced from Gold Canyon.
Gold Canyon is surrounded by claims owned by McEwen that comprise their Gold Bar development project. McEwen’s Gold Bar development project includes the other four satellite pits to the Original Gold Bar mine: Gold Pick, Gold Ridge, and two pits at Cabin Creek. Gold Canyon is approximately 900 meters northwest of McEwen’s Gold Ridge pit and is part of the same mineralized system as shown in the image below.
Mineralization at Gold Canyon is controlled by a northeast trending high-angle feeder structure. The feeder structure can be traced to the northeast to the Northwest Gold Ridge target. Atlas drilled one hole just northeast of the Gold Canyon pit, hole 100-45, and returned 18.3m @ 3.48 g/t Au.
Drilling undertaken by Fremont earlier this year intercepted a previously unrecognized mineralized zone approximately 60 metres below the pit floor (see news release dated July 25, 2018). Fremont plans to further define this zone with a drill program in early 2019.
Fremont has the option to earn a 100% interest in Gold Canyon by making payments totalling US$802,500 to Ely Gold Royalties over a five-year period (see news release dated January 16, 2018). The option will be subject to a 2% net smelter return royalty, which can be reduced to 1% for US$3,000,000.