Sierra Nevada Gold (SNX ASX) has finalized a deal to acquire the historic New Pass Gold Mine in Nevada, USA. It’s a move the Company hopes will enable it to resume high-grade gold production.
Acquisition Enables Control
The acquisition extinguishes a longstanding lease-option agreement and associated royalties over 12 key claims, granting SNX 100% ownership of the mine, infrastructure, and on-site stockpiles. This consolidation simplifies tenure and eliminates royalty encumbrances, enabling SNX to expedite evaluation of trial mining proposals.
The purchase price is US$250,000, payable over five years, with an initial payment of US$50,000 upon execution. The transaction is expected to close within 14 days.
Focus on High-Grade Superior Vein
SNX plans to initiate bulk sampling at the Superior Vein from Level 4, where previous work revealed accessible, high-grade zones. Recent assays confirmed grades of 20.1g/t and 16.95g/t Au from remnant ore in that area.
A confirmatory drill hole—NPRC001—intersected 1.22 meters at 26.7g/t Au, 80 meters below existing workings, confirming down-dip continuity of the Superior Vein.
Infrastructure and Accessibility
The New Pass site is well-equipped, featuring a four-story mill, stamp battery, tailings dams, workshops, and mechanical mining equipment. Ventilation, power, and water systems remain intact, though currently disconnected.
Located just 35 kilometres from Austin, the project benefits from proximity to power lines and a geothermal plant within 20 kilometres. Several wells provide adequate water supply.
Permitting and Development Plans
SNX has initiated permitting for underground drilling and bulk sampling, with approvals expected within six months. The company plans to drill from five new platforms to better define the Superior Vein, guided by LiDAR scans.
Executive Chairman Peter Moore stated, “Purchasing the key claims covering the historic high-grade New Pass Mine is a very positive step for the company, providing SNX the opportunity to assess potential for re-establishing gold production from existing underground workings.”
Discovered in 1864, New Pass has produced 40,000oz of gold, primarily from the Superior vein – average grade of 17g/t Au. SNX’s acquisition and planned exploration aim to build on this legacy, unlocking the mine’s full potential.
For more information, visit Sierra Nevada Gold’s website here.
