IAU, IPT
Ruby Hill is the property that keeps on giving for i-80 Gold aka IAU. One of four gold mines in Nevada they are developing, it was already known to host some of the highest grade gold deposits in North America, and since IAu started exploring in earnest they have have greatly expanded the Ruby Deeps zone as well as multiple styles of mineralization at Hilltop including not just gold but also very high grade CRD replacement Zn/Pb/Au/Ag mineralization.
Today we hear about a new discovery located beneath the past-producing Archimedes open pit. Homestake had drilled one hold in the area decades ago that had revealed strong mineralization, but it hadn't never been followed up until drilled a similar hole late year, and now we get an assay from what has been dubbed the 428 Zone of 12.3 g/t Au over 10.7m. This intercept is especially intriguing because it opens up a new host rock for the Carlin-style mineralization, and also suggests that the contact between the Dunderberg Shale and the Blanchard fault may be a new feeder zone. All this will be followed up during ongoing exploration.
Message 34183883
Over the years I have many times chided Impact Silver aka IPT for its lack of ambition, as they seemed happy to just muddle along at various small mines on their Zacualpan Ag/Au/Cu/Pb/Zn property in central Mexico. I had also noted that they had been building their cash stash, which was over $16M at the end of September, and wondered what they were going to do with it.
Today we start to find out. They are buying the producing Plomosas Zn/Pb/Ag mine in Chihuahua, Mexico, from the Australina company that has been running it. The property contains a fully permitted mine and mill with an offtake contract, and the mineralization is high grade, with a JORC mineral resources of 215kt grading 13.5% Zn, 6.3% Pb, and 34.0 g/t Ag Indicated, plus 772kt grading 13.1% Zn, 3.0% Pb, and 19.0 g/t Ag Inferred, at a 3% zinc cutoff.
IPT plans to upgrade the mill, but perhaps most importantly they are planning an extensive exploration programme as much of the strike length of known minerlaization remains untested. IPT thinks that besides the CRD replacement deposits already being mined, there may also be lucrative Au/Cu deposits.
The price seems decent at $6M, with $3M of that in cash, so IPT should have enough money left after the purchase to do the work to get Plomosas humming. My main criticism of the deal is that the seller is entitled to a 12% net profit royalty, which seems excessive to me, but at least it is only applicable to net profit
Message 34186301 |
