Proactive Investors - Run By Investors For Investors

Gold Resource Corp buys County Line project in Nevada for US$300,000

The property is around 14 miles north east of the Isabella Pearl Project and becomes the fifth property in GORO's Nevada mining unit
The County Line project is in Nevada

Gold Resource Corporation's (NYSE:GORO) Nevada unit has bought a 100% interest in the County Line project in Nevada for USS$300,000 from Ely Gold Royalties Inc (CVE: ELY).

"This is the third high-quality project we have sold to Gold Resource for their Nevada Mining unit," said Jerry Baughman, the president of the subsidiary, which sold the project.

"In anticipation of receiving their final mine permit for the Isabella Pearl project, Gold Resource has acquired long lead-time equipment including a new crushing plant as well as new radial stacking and conveying equipment.

"They have also placed an order of an ADR (absorption, desorption, regeneration) plant, which is over 95% complete and expected to be delivered in mid-2018.

"Ely Gold holds royalties on the key exploration and expansion claims at Isabella Pearl as well as royalties on the historic resources at Mina Gold and County Line, both within hauling distance of Isabella."

The property is around 14 miles north east of the Isabella Pearl Project and becomes the fifth property in GORO's Nevada mining unit.

Ely's subsidiary will retain a net smelter returns royalty of 3% on the property.

GORO will have the right to buy-down 1% of the NSR for a total purchase price of US$1mln.

County Line is part of the Paradise Peak collection cluster of high sulphidation epithermal deposits.

The district historically produced a total of 1.5mln ounces of gold and 38.9mln ounces of silver, while the County Line open pit historically produced around 81,000 ounces gold and 760,000 ounces silver.

The Porphyry (East) Pit, which is 2,500 feet south east of the County Line pit, produced around 7,400 ounces of gold and 8,000 ounces silver.

While both open pits represent exploration targets, other targets include "Newman Ridge" and the "Jackpot Zone".

County Line covers an area of around 429 hectares (1,060 acres) and consists of 53 unpatented lode mining claims and one unpatented placer mining claim.

GORO shares in New York nudged 0.46% lower at US$4.34 each.

View full GORO profile View Profile

Gold Resource Corporation Timeline

Related Articles

rc drill rig
October 28 2018
The joint venture is striving to identify West Africa’s next large gold mine.
November 22 2018
The expansion plans will boost margins as well as output
November 22 2018
The mining scene in Western Australia is buzzing with talk about Havieron
Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use