GoldMining buys Idaho project for $1.2 million
GoldMining (TSE: GOLD) has agreed to buy the Almaden (TSE: AMM) gold project in west-central Idaho from Sailfish Royalty for $1.2 million in cash and shares.
Located 140 km north of Boise, the Almaden project is a historic, resource-stage property with 70,234 metres (934 holes) of drilling. It hosts outcropping, low-sulphidation epithermal gold mineralization similar to Integra Resources’ Delamar and Florida Canyon projects in southwest Idaho and Hecla Mining’s Hollister and Midas mines in Nevada.
“This acquisition continues our strategy of consolidating quality resource-stage projects in the Americas,” said Garnet Dawson, CEO of GoldMining.
“The transaction is a win for both companies as it is accretive to GoldMining, while allowing Sailfish to focus on its royalty business. Our next step after completing this acquisition will be to complete a current resource estimate on the project.”
The acquisition, consisting of $575,000 in cash and $575,000 in shares (based on the volume-weighted average price of GoldMining shares on the TSX for the five trading days prior to closing), is expected to close in March.
Gold mineralization at the project is associated with intense silicification and argillic alteration that measures roughly 1,900 metres long by 500 metres wide by 150 metres thick.
The deposit was drilled by several companies, including Homestake and Amax Gold, between 1980 and 2012; a historic resource was completed in 2009. Most of the drilling was in vertical holes within 100 metres of surface.
Drilling completed in 2011 and 2012 included highlights of 53.3 metres of 1.08 g/t gold (starting from surface), including 12.2 metres of 2.23 g/t gold; and 76.2 metres of 1.2 g/t gold (starting from surface), including 27 metres of 2.17 g/t gold.
(This article first appeared in the Canadian Mining Journal)