Endeavor Silver Corp. (EXK) acquires Bruner property from Canamex for $ 10 million
Receive instant alerts for news on your actions. Claim your 1-week free trial for StreetInsider Premium here.
Endeavor Silver Corp. (NYSE: EXK) announces that it has concluded a definitive agreement (the “Agreement”) With Canamex Gold Corp. to acquire a 100% interest in the Bruner property of Canamex, a gold exploration, located in Nye County, Nevada approximately 180 kilometers (km) southeast of Reno for US $ 10 million in cash.
Gold was originally discovered at Bruner in 1906, and the district experienced intermittent, historic small-scale mining between 1906 and 1998. Recent exploration activities by previous miners included mapping, sampling, mining. geophysical surveys and drilling, resulting in a mineral resource estimate in 2015 and an economic assessment in 2017 describing low capital cost, surface and heap leach mining.
Strengths of the properties:
- Acquire a 100% interests totaling 1,457 hectares on patented and non-patented claims, subject to pre-existing NSR royalties, some of which may be repurchased.
- Ideally located in the northwest trending mineral belt of Walker Lane, Nevada, which is currently home to several producing mines and recent discoveries.
- Readily available by a paved highway and gravel roads just 25 miles from the town of Gabbs, Nevada. High voltage electricity is available approximately 30 km from the project and water rights have been secured.
- Favorable geology with gold and silver in epithermal veins with low sulphurization and in disseminations in areas in tablecloths and in stockworks. Three gold zones have been delineated in a large 3 km zone of anomalous gold values.
- Historical resources of 342,000 ounces of gold contained in 17.5 million tonnes grading 0.61 grams per tonne in three zones, Paymaster, HRA and Penelas, according to Canamex Gold estimates. Endeavor has not verified and does not rely on this historical resource estimate. See below for historical resource estimate qualifications.
- Strong potential discover other gold and silver mineralizations that can be mined in the open pit, as shown by surface sampling between the Paymaster, HRA and Penelas zones.
- Excellent metallurgy – The results of the cyanide leaching tests show that each mineralized zone has gold recoveries> 85% for a crush size of 0.75 “to 3.0” with a potential for all-run leaching.
- Provides diversification with an advanced stage exploration project in Nevada, USA, a stable and world-class mining jurisdiction.
Endeavor CEO Dan Dickson commented: “We are delighted to add an advanced precious metals exploration property to our portfolio of projects. Bruner represents a good start in building an attractive gold-silver portfolio in Nevada and should be an accretive acquisition for our five-year strategic plan to become a leading silver producer, with potential for discoveries of exploration, district acquisitions, short-term production, and organic growth.
“Our exploration team will first focus on verifying historical resources and then turn their attention to the many exploration targets on the Bruner property. We look forward to unlocking the full potential of the Bruner property with the goal of building a new mining operation in yet another historic mining district in Nevada. “
summary of transactions
Under the agreement, Endeavor will pay US $ 10 million in cash for 100% of the Bruner gold project, which includes mining concessions, mineral rights, real estate assets, water rights and authorizations. and government permits. The completion of transactions under the Agreement is subject to customary closing conditions and is subject to the approval of Canamex shareholders.
The resource estimate for the Bruner Gold Project was prepared for Canamex Gold in a technical report dated January 22, 2018 entitled “NI 43-101 Technical Report on the Bruner Gold Project, Updated Preliminary Economic Assessment, Nye County, Nevada, USA” by Welsh Hagen Associates. . The resource estimate was established by surface drilling. A qualified person has not done enough work to classify the historical estimate as a current mineral resource or mineral reserve.
Endeavor does not treat the historical estimate as a current mineral resource or mineral reserve, has not verified and does not rely on the historical resource estimate. Endeavor plans to “match” certain drill holes and conduct a drilling program to improve the historical estimate as a current mineral resource.
Dale Mah, B.Sc., P.Geo., Vice President of Corporate Development of Endeavor, is the Qualified Person who has reviewed and approved this press release.