Premier Gold Mines Ltd. has entered into an option agreement with Ely Gold Royalties Inc. to acquire a 100% interest in the Rodeo Creek property located in the Carlin Trend of Nevada. The Rodeo Creek property is a 510-acre land package consisting of 31 unpatented claims adjoining Premier’s 40% owned South Arturo property in the Carlin Trend, and approximately 10 kilometers northwest from Barrick Gold’s Goldstrike operations.
Premier will have the option to acquire a 100% interest in the project by making $500,000 payments to Ely Gold over a 5-year period and Ely Gold will retain a 2% net smelter royalty.
The Rodeo Creek acquisition increases Premier’s exposure to one of the world’s most prolific gold districts, the Carlin Trend.
Premier is currently participating in the construction of two new mining operations at its South Arturo joint venture that are located within 3 kilometers of Rodeo Creek. Production at South Arturo is anticipated to ramp-up in 2019 and the partnership is drilling multiple targets in an effort to increase reserves and resources.
The Rodeo Creek Property is located along the Bootstrap Reef/Margin and underlain by the same rock units as the mines in the area, and is host to multiple faults and dike swarms, similar to the nearby gold mines.
“This acquisition is consistent with Premier’s strategy of growing land positions in the heart of prolific gold districts,” stated Ewan Downie, president and CEO. “The Rodeo Creek property has seen little exploration compared to the rest of the Carlin Trend and we are excited to get to work on this project”
Premier also announced the departure of Charlie Ronkos, executive vice president, development, Americas.
Premier Gold Mines Ltd. is a gold producer with precious metal projects in Canada, the United States and Mexico. Premier’s team is focused on creating a low-cost, midtier gold producer through its two producing gold mines; and two advanced multimillion-ounce development projects where permitting and pre-construction initiatives are in progress.