Silver Standard Resources has entered into an agreement with Newmont to acquire 2,844 hectares contiguous with its Marigold mine in Nevada (the Valmy property) for $11.5 million.
“This acquisition complements our strategy at Marigold to increase resources and add operating flexibility,” said Paul Benson, president and CEO of Silver Standard. “Securing formerly operating open pits with exploration potential near Marigold’s Mackay pit provides our team another opportunity to create value for shareholders at Marigold.”
The addition of the Valmy property increases Silver Standard’s total land holding at the Marigold mine by more than 35% to 10,759 hectares. The eastern portion of the Valmy Property contains the Valmy and MUD deposits, which are less than 1,000 m east of Marigold’s Mackay deposit. The proximity to existing or planned infrastructure affords the opportunity for improved haul road, waste rock storage area and leach pad designs at the Marigold mine.
Mining at Valmy and MUD concluded in 2005. These areas will be the initial focus of the Valmy exploration program. The Valmy pit produced 196,000 oz gold from 6.8 million metric tons (mt) of ore at a gold grade of 0.89 g/mt between 2002 and 2005, as previously reported by Newmont in 2005.
Silver Standard will initiate a program to validate the Valmy Property drill hole database and develop a mineral resources estimate.