Nevada Geothermal Power buying mineral rights at Blue Mountain
Canadian Nevada Geothermal Power buys "Blue Mountain" gold project from Gryphon Gold Corporation' s subsidiary, Nevada Eagle Resources (NER).
As announced by Canadian Gryphon Gold Corporation (TSX:GGN), the company’s “wholly owned subsidiary, Nevada Eagle Resources (NER), has sold its Blue Mountain project to Nevada Geothermal Power Company (TSX VENTURE:NGP).
NER staked this property in November 2008. On April 1, 2009, Nevada Geothermal Power Company paid NER $50,000 for 31 claims subject to future production royalties from the property. Nevada Geothermal Power Company is required to pay a 2% net smelter return royalty (NSR) from the core claims and a 0.5% NSR on any future precious metal production that is derived from mineral rights located within the Area of Interest. The Area of Interest consists of 17 square miles.
The explanation for this deal comes in an announcement by Nevada Geothermal Power: “Desert Valley Gold Co., a wholly owned NGP subsidiary, has acquired the mineral rights to Blue Mountain from Gryphon Gold Corp.’s wholly owned subsidiary, Nevada Eagle Resources (NER). In order to protect access to the geothermal resource it was necessary for NGP to acquire these mineral rights.
“NGP remains focused on developing the geothermal potential at Blue Mountain. We are pleased to have secured the mineral claims in order to secure access to the geothermal resource,” stated Brian Fairbank, CEO & President.” (source Nevada Geothermal Power announcement)
The Blue Mountain Project encompasses an undeveloped, high level, epithermal gold system that lies approximately 20 miles south of the high grade Sleeper deposit, mined by Amax Gold. Historic vertical drilling at Blue Mountain has partially defined two low-angle, tabular mineralized horizons whose thickness vary from 25 to 60 feet. These blanket-like zones are open to the north and to the west, and are strongly brecciated and fractured. High-angle “feeder” structures were intersected within and beneath the main gold zone in several of the first angle holes drilled on the property. These steeply dipping structures contain moderate to high-grade gold mineralization. Historic exploration work has not adequately tested the potential of these structures or the potential for a covered “Sleeper-type” target.
Drilling by a number of mining and exploration firms, including four major companies, over the past twenty years has confirmed the presence of a precious metal bearing epithermal system in 87 drill holes in the central portion of the area.”
Source: Company announcement via Marketwire.com