Ely expands Tonopah West property in Nevada
Canada’s Ely Gold Royalties (TSXV: ELY) and its wholly-owned subsidiary Nevada Select Royalty announced that they have completed the purchase of 73 patented mining claims from Cliff ZZ L.L.C., a Nevada limited liability company.
Known as the Tonopah Extension Claims, the tenements are located in the Esmeralda and Nye Counties and are contiguous to Nevada Select’s current holdings at the Tonopah West property.
To seal the deal, Ely paid $650,000 in cash and issued 600,000 share purchase warrants. Each warrant will be exercisable into one common share at $0.78 for a period of two years.
With the addition of the new claims, the consolidated Tonopah West land package includes 96 patented mining claims and 17 unpatented mining claims.
Adding the new land was necessary so that Ely Gold was able to sell Tonopah West to Blackrock Gold (TSX-V: BRC), with whom the Vancouver-based firm signed a $3-million deal in late February.
According to Ely, the Tonopah District is an epithermal precious metal deposit of the quartz-adularia type, which may be divided into gold-rich and silver-rich subtypes. Historical production in the area has been estimated at 174 million ounces of silver and 1.86 million ounces of gold.