Premier Gold Mines Ltd. (TSX:PG) has signed an agreement with Newmont Mining (NYSE:NEM) whereby it will consolidate a 100 percent interest in the Cove-McCoy Gold Properties. The properties are located along the Eureka-Battle Mountain Trend in Nevada.
As quoted in the press release:
This capex-friendly agreement will enable Premier to explore the Cove and McCoy deposit areas (see Image 1) in an integrative manner while also securing a commitment from Newmont to process ores that might be mined at the property over a 10 year period at predetermined toll rate calculation. Premier believes that a world-class exploration/production opportunity exists at Cove-McCoy (particularly in today’s post-$1000 per ounce gold price environment) and will direct its efforts in the near-term on advancing the heap leachable (open pit) opportunity while also evaluating the full extent of primary structures that link the deposits.
Premier Gold president and CEO, Ewan Downie, said:
Terms of the agreement support a common sense first step toward building a long-lived gold and silver-producing asset that is very attractive for our shareholders. This important acquisition secures for Premier a 100% interest in a substantial and complementary land package located in the heart of one of the world’s most prolific gold districts.