Fiore Gold Ltd. [F-TSXV; FIOGF-OTCQB] signed a letter of intent with Clover Nevada LLC to acquire a 100% interest in the past-producing Illipah gold project, located in White Pine county, Nevada, approximately 36 km northeast of Fiore’s Gold Rock Project at the southern end of the prolific Carlin trend.
The Illipah gold project covers approximately 1,600 hectares (3,950 acres) and hosts a former heap-leach gold mine that produced 37,000 ounces of gold in the late 1980s at an average grade of 1.37 g/t gold and heap leach recoveries over 80%. The geological dataset for the project is extensive and includes 562 primarily reverse-circulation drill holes, as well as 2,415 soil samples, 491 rock samples and detailed surface mapping.
Tim Warman, Fiore’s CEO stated, “Illipah is an excellent addition to our extensive land package in this highly prospective part of Nevada. The project is close to our existing operations and is geologically very similar, with the key Pilot-Devils Gate and the Chainman-Joana stratigraphic contacts encountered at surface or by drilling. Our geologists are eager to apply what we’ve learned about controls on mineralization at Pan and Gold Rock and to begin reviewing the extensive Illipah dataset to prioritize targets for a first stage of exploration.”
Clover Nevada LLC is an indirect subsidiary of Waterton Precious Metals Fund II Cayman, LP. Fiore is paying a total consideration of:US$200,000 in cash and 1.3 million Fiore Gold shares, subject to regulatory approval.
Firoe’s corporate strategy is to grow into a 150,000 ounce per year gold producer. To achieve this, it intends to increase gold production at the Pan Mine while also growing the reserve and resource base, advance exploration and development of the nearby Gold Rock project and acquire additional production or near-production assets to complement our existing operations.