- Clear pathway to trial mining and near-term cash flow generation established
- Underground refurbishment activities commence at New Pass
- Portal rehabilitation and site preparation commenced ahead of underground access
- Metallurgical test work delivered up to 97% total gold extraction through a conventional gravity plus cyanide leach flowsheet.
Sierra Nevada Gold (ASX: SNX) is on track to obtain early cashflow after positive metallurgical test work confirmed the potential to commence trial mining at the New Pass gold project in Nevada.
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Metallurgical test work provided further confidence in a ramped up development at New Pass after it delivered up to 97% total gold extraction through a conventional gravity plus cyanide leach flowsheet.
The company has already commenced underground refurbishment at the Superior level four adit, a key step toward planned underground drilling and trial mining of the high-grade Superior vein at New Pass
Portal rehabilitation and site preparation activities are underway and will support access for underground drilling from multiple positions along the vein.
Executive director, Peter Moore, said portal rehabilitation and site preparation activities are underway and will support access for underground drilling from multiple positions along the vein.
“Commencement of underground refurbishment at New Pass in Nevada marks an important step toward underground drilling and potential trial mining.
“In parallel, the metallurgical results are highly encouraging, with exceptional gravity recovery and outstanding overall gold extraction confirming the project’s amenability to conventional processing.
“Together, these developments materially strengthen our confidence in New Pass as a potential near-term production and cash flow opportunity for SNX.”
The company plans to complete approximately 500m of underground drilling from five drill stations, targeting mineralisation directly below the level four workings. This program is designed to confirm vein continuity, grade distribution, and mining conditions, and will inform stope design and bulk sampling strategies.
Importantly, all planned activities are located on 100%-owned patented mining claims. These claims provide freehold tenure, offering significant strategic advantages including reduced permitting complexity, enhanced security of tenure, and greater operational flexibility relative to unpatented federal mining claims.
Rock chip sampling by SNX of remnant mineralisation exposed within Superior adit four has returned multiple ore-grade results ranging from 2.1 g/t gold to 20.1 g/t gold. These results, derived from both relic and peripheral mineralisation, are consistent with the bonanza grades historically mined at New Pass and support the potential for high-grade vein extraction.
SNX is up 6.98% to 4.6¢. Mkt cap $12.80M.
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