Nevada Gold Corp. officials have announced that their company has entered into a formal option agreement to acquire up to a 75% stake in a former producing high grade silver-lead-gold mine in Nevada.

The Diamond Jim mine in Elko County consists of 35 claims and is located in northeastern Nevada, 20 miles south of the Idaho border, 260 miles northeast of Reno, according to President Merrill Moses. The property lies east of the northeast-trending Midas trend, one of Nevada’s several important epithermal gold belts.

The property covers a portion of the historic Island Mountain mining district which was first prospected in the 1860s, following discovery of one of Nevada’s largest placer gold districts at 40,000 oz of production in streams draining the area. Veins with silver, lead, zinc, copper and gold were discovered in 1934. At the mine’s silicified thrust faults and selected stratigraphic zones are high silver-lead values with strong indications for gold in subordinate flanking structures.

Nevada Gold’s plan is to further explore the property for richer deposits potentially exploitable in the current climate of high precious metal prices; the property’s potential was first recognized by Columbus Gold in 1984.

Nevada Gold Corp has now optioned a 2,400-acre exploration target in Northern Nevada’s Long Canyon Trend where Newmont recently bought out Frontier Gold and AUE Ventures for $2.3 billion. Most recently, Nevada Gold also acquired an option to earn a 75% interest in a former producing high grade silver, lead and gold mine also located in northern Nevada.