The company also said it continues to push forward environmental studies to support the advancement of permitting activities and support a mine plan of operations at its Bullfrog project, which is also located in the Walker Lake district of Nevada.
Augusta Gold said it aims to be the first modern day producer in a district where recent notable activity included AngloGold Ashanti Ltd.’s [AU-NYSE, ANG-JSE, AGG-ASX] acquisition of Corvus Gold. At the time of the transaction in September, 2021, the companies said the deal consolidates one of the largest new gold districts in Nevada, providing AngloGold Ashanti with the opportunity to establish a low-cost production base in the area.
Augusta Gold’s shareholders include Barrick Gold Corp. [ABX-TSX, GOLD-NYSE], which has a 10.6% stake in the company. Prior to changing its name, Augusta acquired the rights to 1,500 acres adjoining its Bullfrog Gold Deposit from Barrick Gold.
Reward is a fully permitted, low-risk heap leach project located about 10 kilometres east of the Bullfrog project. According to company documents, Reward has all major permits in place with sufficient water supply. Measured and indicated resources at the site stand at 427,000 ounces of gold, grading 0.75 g/t.
In a press release Wednesday, Augusta said Kappes, Cassiday and Assoc., based in Reno, is the primary contractor for the study, which is scheduled for completion in the fourth quarter of this year.
“The decision to advance directly to a feasibility study for the Reward Project was pivotal in bringing the company closer to its plan to get the mine in production for late 2024,’’ said Augusta Gold President and CEO Don Taylor.
“Additionally, moving forward the permitting, metallurgy and environmental studies at the Bullfrog project will help in the timely progression of making Augusta Gold a substantial gold producer,’’ he said.
The Bullfrog Gold Project is located on the prolific Bullfrog district approximately 200 kilometres northwest of Las Vegas and 10 kilometres west of Beatty. The company controls approximately 7,800 acres of mineral rights including the Bullfrog and Montgomery-Shoshone (MS) deposits. It has identified significant additional mineralization around the existing pits and defined several exploration targets that could further enhance the project.
Bullfrog contains a measured and indicated resource of 1.2 million ounces of gold, grading 0.53 g/t.
Once in production, the free cash flow from Reward is expected to partially fund construction at Bullfrog.
On June 6, 2023, Augusta shares closed at $1.01. The shares currently trade in a 52-week range of $2.15 and 95 cents.