Nevada Canyon Gold (OTC Pink: NGLD) entered into an exploration lease with option to purchase agreement on the Swales property, located in the Swales Mountain Mining District in Elko County, Nevada.
In a press release, the junior company said that Swales, which is located within the gold-rich Carlin Trend, consists of 40 unpatented mining claims with a combined area of 800 acres.
The property is approximately 13 miles northeast of Nevada Gold Mines’ Gold Quarry mine and 16 miles east southeast of its Goldstrike mine. Collectively, these mines have to date produced over 100 million ounces of gold and still contain more than 21 million ounces of gold reserves.
According to Nevada Canyon Gold, geologically, the Swales site is underlain by Upper plate Ordovician Vinini Formation with windows of Lower plate Mississippian to Silurian Roberts Mountains Formation limestone, the ideal host rocks for a Carlin-type gold deposit.
“Held by private interests for most of its history, the Swales property remains very underexplored with minimal modern-day exploration,” the media brief states. “Several factors demonstrate the exceptional potential of this relatively unexplored project for new discoveries of significant mineralization on several exploration targets.”
Full consideration of the 10-year extendable agreement consists of an initial cash payment of $20,000 within 90 days upon execution of the agreement and $20,000 on the first anniversary of the effective date and any succeeding anniversary of the effective date while the agreement remains in effect.