VANCOUVER, Feb 5 (Financial Press) – Open Gold (OPG) just announced that it will acquire 100 percent of the Wilson Independence gold project currently held by General Metals. This represents a significant acquisition and win for current and future Open Gold shareholders by vaulting OPG from an explorer to a near term producer with ounces in the ground.
Based in the prolific gold producing state of Nevada, Open Gold managed the deal for a very limited amount of cash and a large share issuance making this the deal and company to watch. Nevada is one of the most sought after mining jurisdictions with its prolific gold and mining friendly government.
Taken as a whole, the state of Nevada is the fourth largest gold producer in the world. The location of the Wilson independence gold project and its similarity in grade to Newmont’s adjacent mine should give shareholders a great deal of confidence with this acquisition.
“I couldn’t be happier with the structure and the value to shareholders this deal delivers. The acquisition of this project will take OPG from a grass roots exploration company to a very near term producer with amazing assets in Nevada in a matter of months,” says OPG president Bryson Goodwin.
The deal negotiated by Bryson is expected to be a tremendous boon for OPG’s shareholders.
“We have over one million ounces, the possible donut hole in a potential super pit complex,” explains Goodwin.
“We are surrounded by Newmont on three sides and could easily transition into their assets once we prove up a few more ounces. When I first entered into discussions on this property I was truly shocked that Newmont had not snatched it up yet. Upon reflection and review I realized that the property needed a season of step out drilling and tidy up to get it ‘major ready’. I considered that it’s an amazing property as a standalone, and really had to be acquired for OPG shareholders.”
General Metals acquired the Wilson Independence Gold-Silver project in 2006. The project consists of 14 whole and fractional mining claims. The property covers a zone of 240 acres within the Battle Mountain Mining District and is adjacent to the Phoenix and the soon to be reopened Sunshine Mine. Newmont’s equipment and personnel work adjacent to the property and Newmont has drilled right up to the property boundary on two sides. A simple search on Google maps reveals the staggering and prolific complex which surrounds the OPG property.
The mine has spectacular access to infrastructure and skilled workforce thanks to its proximity to Newmont and the town of Battle Mountain, situated 30 miles north of the property along Interstate highway 80.Power transmission lines have recently been extended to within one mile of the project.
Development to date has identified three main targets on the property. Previous drilling on the Independence Deep Target indicated a large body of mineralized material as the company completed the interpretation of the geologic modeling in the fall of 2009.
A comprehensive drilling program between 2007 and 2010, with over 130 drill holes has been realized on the Shallow Target, which has identified highly anomalous to high grade mineralization.
A highly mineralized area has also been identified in 2008 north of the Canyon Fault and the Independence Shallow target called the Hill Zone. The drilling identified three parallel zones of mineralization and enhances the mineralization potential in the area, which may be significantly wider than in the Independence Target.
The historic NI 43-101 technical report includes resource estimates based on historic drilling. The 2007 to 2008 exploration drilling program with 84 holes near the surface target and 44 drill holes completed during 2009 to 2010 in the Hill Zone area.
The measured and indicated resources amount to 223,200 ounces of gold with an average grade of 0.014 ounces per ton (opt), and 3,784,400 ounces of silver with an average grade of 0.236 opt. Also, the report indicated promising mineralization in the Deep Skarn Deposit with inferred resources consisting of 796,200 ounces of gold at a grade of 0.190 opts.
The terms of the deal between Open Gold and General Minerals were very favourable for the buyer.
“It’s a very well negotiated deal and represents an upside for both my shareholders and GNMT which is truly staggering!” says Goodwin.
The next steps will be for both parties to sign complete the definitive agreement, finish the PEA and start drilling to outline the deposit.
About Open Gold Corp.
Open Gold is a public company listed on both the TSX-V and the Frankfurt Exchanges. The company has an option to acquire 100% of the Mitchell Massive Sulfide Project. Open Gold also holds a 100% interest in 16 highly prospective gold-copper mineral claims located in the Greenwood Mining Division of south central British Columbia more specifically known as the Eholt Property. http://www.opengoldcorp.com
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