Central Nevada Gold on mine hunt: CEO

Privately held developer Central Nevada Gold is exploring potential acquisitions of precious metals assets in Nevada after acquiring the former-producing Mule Canyon mine from Newmont earlier this summer, according to CEO Simon Griffiths. The $20-million Mule Canyon acquisition, finalized in late June, is currently being advanced through prefeasibility and permitting stages in the second half of 2024, with a target construction decision by 2028.

Central Nevada anticipates announcing a new mineral resource estimate for the property in the coming months. The company aims to prioritize Mule Canyon in the short term but will continue to scout for other opportunities in Nevada, leveraging its strong balance sheet and existing project pedigree. Mule Canyon, discovered in 1986 by Gold Fields, was brought into production by Newmont in 1996, yielding around 500,000 oz of gold over five years.

Mining ceased in 2000 due to low gold prices, but the remaining unexploited potential is significant. Central Nevada CEO Griffiths noted that larger companies, such as Newmont and Barrick, are selling smaller or non-core mines to generate cash for low-cost, massive assets in tier-one jurisdictions. He expressed interest in pursuing silver-rich properties, leveraging past experience as a former CEO of silver producer Andean Precious Metals.

Central Nevada's management team includes executive director Fraser Buchan, who held senior leadership roles at Andean, indicating a potential focus on silver. The company's purchase price for Mule Canyon included a $10-million cash payment at closing, with a second cash payment made upon going public, likely in early 2027 after metallurgical sampling and drilling.

Situated in Nevada's historic Argenta mining district, Mule Canyon is near other prolific areas such as the Carlin, Battle Mountain, and Getchell trends. Historical data shows an average gold grade of 3.8 grams per ton, with metallurgical recoveries around 94%.