K2 Gold (TSXV: KTO) has received a positive decision letter from the Bureau of Land Management (BLM) on its wholly-owned Mojave property in Inyo County, California.
Mojave is a 5,830-hectare oxide gold project with base metal targets. Historical drilling by both BHP and Newmont on the property returned ore-grade economic intersections from surface.
To date, only two of the eight exploration targets identified have been drilled by the company.
“The BLM decision on the update to the plan of operations is an important milestone in the process for expanded Phase II exploration drilling at key zones where Phase I drilling yielded significant gold intercepts,” the company said.
Although this BLM decision does not constitute authorization for K2 Gold to start its Phase II exploration drilling plans, the BLM decision allows for the formal initiation of the National Environmental Policy Act (NEPA) environmental review process. At a time specified by the BLM, the company will update its reclamation cost estimate and post reclamation financial assurance for the additional exploration work.
“We are extremely pleased to have achieved this important permitting milestone for Mojave’s second phase drilling program. We look forward to methodically advancing this highly prospective project and building upon last year’s successful program,” John Robins, chairman of K2 Gold, said in a news release.
The company said it submitted an amendment to its plan of operations for Phase II drilling based on enhanced environmental and site data. According to k2 Gold, the updated plan meets all federal regulatory requirements and addresses environmental resources through measures incorporated in the project design.
The proposed plan of operations at Mojave includes the establishment of 30 drill pads to support exploration in three key mineral zones, reverse circulation (RC) and/or diamond core drilling of up to 120 drill holes, and reconstruction of approximately 4.3 km of previously reclaimed access roads.
Shares of K2 Gold rose 1.5% by midday Tuesday following the permitting milestone. The junior miner has a market capitalization of C$17.4 million.