American Eagle Gold Corp. [AE-TSXV] said Wednesday it has struck a deal to acquire a 100% interest in the Cerro Rojos property, which is located 150 kilometres south of Newmont Corp.’s [NGT-TSX, NEM-NYSE] Long Canyon mine in Nevada.
The company said historical drilling at Cerros Rojos, which has returned oxidized gold drill intercepts. One of them intersected 12.2 metres at 0.57 g/t gold from surface. This is an indication of the potential for the discovery of a new gold deposit in a previously undeveloped part of Nevada, the company said.
American Eagle said the initial focus will be on Carlin-style deposits. A Carlin-style deposit is typically hosted in carbonate rocks and the mineralization is closely associated with anomalous concentrations of arsenic, mercury, antimony and thallium.
Amerian Eagle has entered into an assignment agreement dated September 13, 2021, with Standard Ore Corp. that will enable it to assume all rights and interest in a lease with option to purchase agreement between Standard Ore and privately-owned Rubicon Resources Inc. for a 100% interest in the Cerro Rojos property.
The drill-identified mineralization at Cerros Rojos is hosted by Devonian/Mississippian pilot shale near the contact with the underlying Devonian Guilmette formation; this setting is similar to the Alligator Ride complex of deposits operated by Kinross Gold Corp. (K-TSX, KGC-NYS, 100 kilometres to the west, as well as Fiore Gold Ltd.’s [F-TSXV, FIOGF-OTCQB] Pan mine, 125 kilometres to the southwest. Alligator Ridge and other Pilot-hosted deposits in eastern Nevada have produced more than 2.0 million ounces of gold.
American Eagle Gold said it plans to explore this property, starting with digitizing historic surface data and then undertaking field exploration work and geophysical surveys to delineate targets for a drill program to begin in late spring, 2022.
The shares were unchanged at 16 cents on Wednesday and trade in a 52-week range of 39.5 cents and 12 cents.
American Eagle is focused on exploring for a world class gold deposit on its Golden Trend property, which is situated in one of the largest gold-producing districts in Nevada. Gold was first discovered in the district in the early 1800s.
The property is located on the Cortez gold trend in Nevada about 72 kilometres south east of the town of Battle Mountain and next door to Barrick Gold Corp. [ABX-TSX, GOLD-NYSE] and Newmont’s Gold Rush and Cortez mines, which host over 27 million ounces of gold.
The company plans to drill and advance its relatively unexplored property and continue to focus on acquiring and advancing gold projects in the area.
In July, 2020, American Eagle struck a deal to acquire the Golden Trend project from Rubicon Resources. Prior to Rubicon, the project was owned by Kinross Gold, which drilled two exploration holes. The property spans 2,286 acres
Despite having numerous owners in the past, the property remains relatively unexplored with next to no historical drilling at depth.