Getchell Gold Corp. Secures Long-Term Mining Lease for Dixie Comstock
Getchell Gold Corp. Enters Mining Lease with Montana Goldfields
Getchell Gold Corp. is thrilled to announce a strategic mining lease agreement with Montana Goldfields LLC, marking a significant milestone for the company. As part of this collaboration, Getchell Gold Corp. will lease the historical Dixie Comstock Gold Mine through its wholly-owned subsidiary, Getchell Gold Nevada, Inc. This agreement is set for an impressive duration of twenty years, facilitating extensive exploration and development of this promising mining property.
About the Mining Lease Agreement
Montana Goldfields, LLC is a seasoned entity with a strong track record in the successful operation and development of precious and base metal mines across the United States, including Mexico. Their recent projects, such as the Carmen Gold Mine and Pediment Gold's La Colorada mine, showcase their capacity for producing high-value minerals like gold and silver. The partnership is expected to leverage this expertise for the benefit of the Dixie Comstock property.
Financial Terms of the Agreement
Under the terms of the mining lease, Montana Goldfields will compensate Getchell Gold Corp. with an initial payment of US$25,000 upon executing the agreement. Subsequently, Montana will make annual advance royalty payments of the same amount on or before the first anniversary of the lease's effective date and will continue these payments throughout the lease term, providing a consistent revenue stream.
Exploration Commitments and Investment
Montana Goldfields has committed to significant exploration spending, pledging to invest substantial amounts directly into the property over the coming years. Throughout the first Lease year, Montana will allocate at least US$100,000 for exploration, which will increase to US$200,000 in the second year, and a minimum of US$300,000 in subsequent years. This robust investment is essential for advancing the mining operations and discovering potential resources in the area.
Royalties and Production Rights
Additionally, Montana Goldfields will honor a 2% net smelter return royalty owing to Canagold Resources through its subsidiary, American Innovation Minerals. As part of the agreement, Montana has also agreed to pay a 2% net smelter return royalty to Getchell based on future production metrics. Furthermore, during the lease period, Montana can purchase portions of these royalties for specified amounts, emphasizing a strong commitment to collaboration.
Overview of the Dixie Comstock Mine
The Dixie Comstock Mine holds historical significance as a small-scale gold producer. Located in Churchill County, Nevada, the property encompasses 44 unpatented mining claims across 725 acres. Gold discoveries at this site date back as far as 1935, with notable mining operations persisting until 1942 when regulatory changes halted production. Over these years, an extensive infrastructure of mining levels, vertical shafts, and a flotation circuit mill was established, resulting in the extraction of significant ore volumes.
Recent Developments and Future Prospects
While sporadic mining activities occurred through to the mid-1970s, significant exploration has been conducted since then. Various operators have drilled extensive lengths, defining a well-mineralized area that continues to present promising opportunities for future extraction. The recent release of a Wilderness Survey Area over the property significantly aids in removing previous restrictions, paving the way for renewed mining activities and resource exploration.
Professional Oversight
Patrick McLaughlin, a qualified geologist, has thoroughly reviewed and approved all scientific and technical information relevant to this agreement, ensuring that Getchell Gold Corp. adheres to rigorous industry standards.
About Getchell Gold Corp.
Getchell Gold Corp. is a dynamic gold exploration company focusing on Nevada, trading on the CSE under the ticker GTCH, as well as OTCQB: GGLDF and FWB: GGA. The firm mainly focuses on its flagship asset, Fondaway Canyon, which has a significant mineral resource estimate and a recently published Preliminary Economic Assessment, highlighting the company's ongoing dedication to sustainable gold exploration and development.
Frequently Asked Questions
What is the significance of the Mining Lease Agreement?
The agreement allows Getchell Gold Corp. to lease the Dixie Comstock property, enabling focused exploration and development for twenty years.
Who is Montana Goldfields, LLC?
Montana Goldfields is a Nevada-based corporation with substantial experience in mine development and operation, particularly in precious metals.
What are the financial terms of the agreement?
Montana Goldfields will provide an initial payment of US$25,000 and annual advance royalty payments of the same amount throughout the lease term.
What exploration commitments has Montana made?
Montana has committed to invest significant amounts annually in exploration costs, starting at US$100,000 in the first year.
What is the historical context of the Dixie Comstock Mine?
The mine began operations in 1935 and has a rich history of gold production, with previous mining activities ceasing in 1942 due to regulatory changes.
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