Commodities, Exploration/Development, Gold, News

Sierra Nevada soars on 1270g/t silver hit

Sierra Nevada Gold

Sierra Nevada Gold nearly doubled its share price in the space of an hour after announcing a 1270 grams per tonne (g/t) silver intersection at its Endowment mine in Nevada, US.

The company was nudging $0.10 per share following the announcement, having opened the day at $0.050 per share.

Previously drilled core hole BHD006 returned 5m at 479g/t silver within a larger mineralised zone of 12m at 219g/t silver. This included hits of 0.5m at 1270g/t silver from 256.5m and 1m at 823g/t silver from 257m.

This intersection was made 150m vertically below the deepest portion of the Endowment mine which forms part of the Blackhawk epithermal project.

“These results which returned up to 1270g/t silver from Blackhawk are very promising, coming from a vast and extensive vein network,” Sierra Nevada executive chair Peter Moore said.

“We’ve identified 22.5-line kilometres of veins at Blackhawk, but this known mineralisation has sat largely untouched since mining ceased in the area in the 1920s.

“We have two shallow oxide resources which have not been defined to a JORC-compliant level, but this provides us the opportunity to deliver value from an existing project with further drilling and mineral resource definition.”

Drill hole BHD006 has effectively doubled the depth of the known vein system at the Endowment mine.

Sierra Nevada will soon commence a 20-hole drill program, which will look to investigate direct vein extensions within the near-mine environment.

The Blackhawk epithermal project hosts eight mining centres of note with main production coming from the historic Endowment, Silver Gulch, and Blackhawk mines.

First discovered in the 1860s, the Endowment mine delivered 70,000 ounces of gold equivalent production during the late 1800s and early 1900s, with mining ceasing in the 1920s due to the inability to process sulphide ores and prevailing depressed economic conditions.

The area has seen little modern-day exploration serving as Sierra Nevada’s opportunity.

Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.

Previous ArticleNext Article
Send this to a friend