N.S. Firm Signs on for Nevada Mining Site

Bedford-based company inks lease, has high hopes for silver, gold finds on property

NSGold Corp. of Bedford has signed a lease and purchase option agreement with Cerro Rico Ventures LLC for a property in Humboldt County, Nev.

“We are hopeful for gold and silver,’” Glenn Holmes, NSGold’s chief executive officer, said in an interview Thursday.

Holmes said the Silver Hill property, which includes 36 unpatented claims, is in an area with producing gold mines.

“It’s known for gold production.”

The property also has potential silver, copper, arsenic and tungsten deposits, Holmes said.

Under the deal’s terms, NSGold, through its wholly owned subsidiary, NSGold Nevada Inc., may, at any time during the 10-year agreement term, purchase a 100 per cent interest in the Silver Hill property by making a cash payment of US$1.25 million.

The agreement requires NSGold to make a US$40,000 payment upon signing and to make advance minimum royalty payments of US$25,000 on or before the first anniversary of the signing of the deal, US$35,000 on or before the second anniversary of signing and $50,000 on or before the third and subsequent anniversaries.

The advance minimum royalty payments will be credited against a three per cent production royalty based on net smelter returns from production or sale of minerals.

NSGold will have the right to purchase two per cent of the production royalty for US$1.5million before production begins.

Holmes said the company plans to do initial prospecting, sampling and mapping of the Silver Hill property — “a typical first pass” — in the next quarter that will help determine subsequent development work.

NSGold’s principal project is the Mooseland gold property on the Eastern Shore, where it recently completed a third round of drilling.

NSGold shares were trading Thursday for 10 cents on the TSX Venture Exchange, up a cent from their previous close.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

• < Prev
• Next >