Metals One moves to acquire Nevada gold project
Swales is situated within the prolific Carlin Gold Trend, one of the most famous gold producing areas in the world.
If completed, this acquisition will mark the company's entry into the gold exploration sector and diversify Metals One's existing portfolio of critical minerals assets in Europe and North America.
Under the terms of the deal, Metals One would first pay US$100,000 for an option to acquire the leases. This would then give the company the right to acquire the project outright at any time within a ten year period that started in 2021 for a further outlay of US$750,000. Additional ten year periods can be negotiated. A 2% net smelter royalty would also be granted to the vendor.
Swales comprises 40 unpatented mining claims, covering approximately 800 acres on the Carlin Trend.
An additional 99 mining claims on trend with Swales have been identified which can be staked and added to the lease with no additional lease payment
Swales is located in close proximity to some of the largest gold mines in Nevada. Some surrounding prospects contain anomalous gold. Metals One considers that an opportunity exists to discover a significant ore deposit.
There are currently eight producing gold mines within the Carlin Trend. Collectively, these mines have to date produced over 100 million ounces of gold, and still contain more than 21 million ounces of gold reserves. Swales has excellent year-round access and infrastructure within Elko County.
Nevada is globally recognised as a leading mining jurisdiction, consistently ranking as a top region for mining investment. It produces approximately 75% of U.S. gold output and is the world's fifth-largest gold producer.
The plan is to undertake reconnaissance prospecting, geological mapping, surface sampling of outcrops, old workings and mine dumps, and to map historical workings on the property.
Metals One will then follow-up with ground-based geophysical surveying programme based on the results from Phase 1.
"Through Metals One's networks, we have been able to potentially secure a low-cost entry into one of the world's most prolific gold mining districts,” said Craig Moulton, chairman of Metals One.
“Held by private interests for most of its history, the Swales gold property remains very underexplored with minimal modern-day exploration. Several factors demonstrate the exceptional potential of this relatively unexplored project for new discoveries of significant mineralisation. Considering the analogous geology of Swales to nearby mines, the exploration opportunity combined with record high gold prices is incredibly exciting."
View from Vox
The acquisition aligns with Metals One's strategy to diversify and strengthen its asset portfolio by entering the U.S. gold sector, underpinned by record high commodity prices. Gold is the metal of the moment, and there’s no better destination than Nevada. Metals One’s shares jumped by around 9% on the news in early trade.
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