NSGold Corp. (NSX.V) announced last Thursday they purchased an option to acquire 100% of the Silver Hill gold project in Humboldt county, Nevada.
The Silver Hill property is located on the Getchell Trend, with the famous 10Moz+ Getchel mine only 40 kilometers away, and Atna Resources Ltd. (ATN.V) is about 30 kilometers to the North NorthEast.
Historical sampling at the project has returned decent silver grades, as well as gold, copper and tungsten.
Under the terms of the Letter of Intent, NSGold may purchase a 100% interest in the Silver Hill property by making a payment of $1.25M. The Letter of Intent also provides that NSGold is required to make a payment of $50,000 upon execution of the definitive Option Agreement, and to make advance minimum royalty payments which will be credited against a 3% NSR. NSGold will have the right to purchase 2% of the production royalty for $1.5M prior to the commencement of production.
NSGold will also have to pay $1M if they find 1Moz of gold equivalent in the Measured and Indicated categories, and another $2M if they find in excess of 2Moz.
NSGold is hinting at further acquisitions in the press release, so we are looking forward to see what they’ll add to their project portfolio.
You can read the full press release here.
Disclosure: The author holds a long position in NSGold Corp. Please see our disclaimer for current positions.
