Perth-based explorer PolarX Limited is expanding its footprint in America by proceeding with the acquisition of the high-grade gold and silver Humboldt Range project in Nevada. Off the charts samples grading as high as 3,384.14 grams per tonne gold and 2,083.3 g/t silver highlight the potential of the project in the multi-million-ounce American mining region.
Back in January PolarX entered an exclusive option agreement for the acquisition of Humboldt Range and following a period of due diligence, which included verification of the high-grade gold and silver samples, the company has elected to secure the project.
Located in Nevada, Humboldt Range is made up of 272 lode mining claims across the Black Canyon and the Fourth of July landholdings within ten kilometres of each other. Mineralisation occurs in swarms of high-grade epithermal quartz veins ranging in thickness from 1 centimetre up to 3 metres in width, with historical mining at the project occurring between 1865 and 1927.
The claims have been owned by the same family since the 1950s and only limited exploration has taken place despite the abundance of high-grade gold and silver samples from veins and historical workings that have been reported.
At Black Canyon, an eye-catching 3,384.14 g/t of gold from the old Indian Ike mine, together with 512.73 g/t and 335.03 g/t gold from the Lois Vein are just some of the many high-grade showings that look like they are begging for follow up.
To the south at the Fourth of July Claims, a plethora of historical samples returned grades as high as 2,083.3 g/t of silver, 838.9 g/t silver and 31.2 g/t gold from veins scattered across the tenure.
Adding further encouragement to the potential of Humboldt Range is the presence of two multi-million-ounce mines located just a stone’s throw away from the project.
The five-million-ounce Florida Canyon gold mine is situated within a few kilometres to the west of the Black Canyon claims. Meanwhile, some 15km to the south of the Fourth of July claims lies the Rochester mine with a head-turning 400 million ounces of silver and 3 million ounces of gold in metal endowment.
The acquisition of Humboldt Range is anticipated to be finalised by the 6th of April with a US$35,000 exercise fee and 5 million PolarX shares issued to the vendor. Further payments of US$70,000 are due on each of the first and second-anniversary dates of the execution of the agreement.
PolarX will also be obliged to pay the relevant claim fees for 2022 due at the start of September this year as an advance against future production royalties. US$10,000 monthly payments to the vendor commencing in September 2022 are also due as an advance against future production royalties. A royalty on gold production of 2.5 per cent of net smelter returns is also applicable, rising to 3.75 per cent if the mined grades exceed 15.6 grams per tonne gold
Fieldwork at Humboldt Range is set to commence next month with geological mapping and channel sampling together with ground geophysics all to be deployed with the aim of generating drill-ready targets by the fourth quarter this year.
Following a placement in February that raised A$5 million the company is well funded to continue its exploration endeavours in Alaska and now also in Nevada at the bonanza grade Humboldt Range.
The big question on punters lips now will be where did those uber high-grade samples come from?
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
