Gold-silver exploration project
Option to earn 60% interest: US$2.5M over 4 yrs plus $0.14M cash payments spread over 2020-2022
Current Activities & Work
Initial drill program completed Q1 2020
Drill permit received
Sand Canyon is an exploration-stage, gold-silver project located in proximity to the historic Sleeper Mine in northwestern Nevada. It consists of 526 claims totaling approximately 16 square miles. Golden is optimistic about the strength of the epithermal system that is expressed at surface by clear geochemical anomalies associated with high-level quartz veining and breccias. The project contains multiple targets that appear to be similar in surface expression to the discovery outcrops related to the Sleeper Mine. The targets have not been drilled despite being located in an area of several major modern gold mines.
Sand Canyon is located in northwestern Nevada, roughly 50 miles northwest of Winnemucca and 18 miles northwest of the historic Sleeper Gold Mine that was operated by Amax Gold Inc. and produced approximately 1.7 million ounces of gold and 2 million ounces of silver between 1986 and 1996.*
The area is accessed by ranch roads reached via 60 miles of paved highway from Winnemucca.
*SRK Consulting, 2011, Mineral Resource Estimation, Sleeper Gold Project, Nevada, USA, for Paramount Gold and Silver Corp, 43-101 Technical Report, 142pp.
During Q2 2019, we entered into an earn-in agreement with Golden Gryphon Enterprises that gives us the option to earn-in to a 60% JV ownership by spending US$2.5 million in exploration expenses over four years, with guaranteed minimum expenditures of $0.5 million in year one. To continue to earn interest in the project, Golden Minerals must spend at least $0.75 million in years two and three and $0.5 million in year four, and drill at least 5,000 feet of core or 10,000 feet of reverse circulation or a combination of the two, by the end of the second year. Golden paid $25,000 cash and $50,000 in reimbursed exploration expenditures to acquire the option and will make staged payments of an additional $135,000 ($35,000 in 2020, $50,000 in 2021 and $50,000 in 2022) on the next three anniversaries of the agreement. During the first full year of the agreement, Golden Minerals spent $1.6 million toward the $2.5 million earn-in requirement, fulfilling the first and second year minimum expenditures and the minimum drill commitment.
Initial mapping and sampling were conducted by Golden Gryphon Explorations and confirmed by Golden Minerals. Activities have identified multiple sets of epithermal veins on the property that are exposed at a high level and generally trend north to slightly northeast. The project contains multiple targets that appear to be similar to outcrops associated with the nearby Sleeper Mine.
In 2019, we completed surface sampling and geologic mapping to identify drill targets. In March 2020 we completed the initial drill program of approximately 1,800 meters in 4 diamond drill holes. The drill holes were placed to target surface geochemical and geophysical anomalies associated with epithermal veining observed in outcrops. Drill holes tested the two principal epithermal vein target areas on the property, the DeLong Canyon target and the Sand Canyon target. The one drill hole collared to test the DeLong Canyon target did not encounter any veins or significant anomalous geochemical values. Interpretation shows that a fault offset likely caused the drill hole to miss the vein system as projected from surface. Three drill holes collared to test the veins and anomalies in the Sand Canyon target area all intersected narrow vein and breccia structures with low anomalous values of Ag, As, Sb, and Mo. No potentially economic concentrations of precious metals were encountered in any of the four drill holes. Plans for further testing of the mineralized system are being considered.