AngloGold Ashanti (JSE: ANG) (ASX: AGG) (NYSE: AU) said it will complete the option to purchase the Silicon project in the US state of Nevada from Renaissance Gold (TSXV: REN).
The transaction for a total of $3 million requires AngloGold Ashanti to pay Renaissance $2.4 million by June 21, 2020, and the rest within 36 months of signing the deal. Following the completion of the option and transfer of ownership, the seller will retain a 1% NSR royalty within a defined area of interest covering approximately 15,000 acres.
In a media statement, the companies said that AngloGold submitted a plan of operations permit application to the Bureau of Land Management, who has prepared an environmental assessment that is currently in circulation for a 45-day public comment period lasting until June 5, 2020.
“If approved, the PoO will allow for up to 155 acres of surface disturbance in phased exploration programs, and the proposed phase one program will include up to 109 drill sites within a 3,630-acre project area located on unpatented mining claims,” the press brief states. “All of the permitted drilling is within RenGold’s area of interest.”
The Silicon property is located 12 kilometres northeast of Beatty, in Nye County, Nevada. Anglo began a core drilling program in late January 2018, and through May 2019 completed 28 RC holes and 19 core holes for a total of 19,019 metres of drilling. The company is targeting structural zones below the shallow steam-heated alteration zone.