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Mining industry

Franco-Nevada and Euro-Nevada Mining Corp. Discover 2.5 Million Ounces of Gold in Northern Nevada

Strategic Insights

— 1 min read

Seymour Schulich, chairman of Franco-Nevada and Euro-Nevada, revealed that the companies have discovered over 2.5 million ounces of gold on the Midas property in northern Nevada, a find that ends months of speculation about the extent of the discovery. The announcement was made at a breakfast meeting for mining analysts and investors, but the stock market reacted negatively, with shares of both companies declining. Despite this, the companies are optimistic about the potential of the Midas mining camp, which could contain up to 10 million ounces of gold.

Key Takeaways:

  • The discovery of 2.5 million ounces of gold on the Midas property is a significant find, with the potential for further exploration and development.
  • The companies have targeted several other gold and silver prospects within the Midas mining camp, where limited drilling has been carried out.
  • Seymour Schulich, chairman of Franco-Nevada and Euro-Nevada, estimated that the gold reserves in the Rex-Grande zone could be doubled through detailed drilling.
  • The companies have the option of keeping 100% of the Midas property by retaining contractors to construct open-pit and underground mines.
  • Alternatively, they could sell part of the Midas property to a major mining company willing to take on construction and operating responsibilities.
  • Pierre Lassonde, president of Euro-Nevada and Franco-Nevada, hopes to have 10 drill rigs exploring the Midas joint venture property by next year.
  • The companies have a cash reserve of about $400 million to finance the project.
  • The exploration is still at an early stage, and it could take 1-1/2 years before the immediate mining potential can be evaluated.
  • About 1.5 million ounces of the 2.5 million ounces of gold are high-grade ore and can be mined at a profit.

Statistics:

  • 2.5 million ounces of gold discovered on the Midas property
  • 1.5 million ounces of high-grade gold ore
  • Up to 10 million ounces of gold potential in the Midas mining camp
  • $400 million in cash reserve for financing
  • 15.5 square kilometers of the 96.75 square kilometers of the Midas district explored
  • 5 drill rigs currently in operation, with hopes to expand to 10 by next year
  • Estimated $384 (U.S.) per ounce of gold

Sources:

  • Franco-Nevada Mining Corp. Ltd.
  • Euro-Nevada Mining Corp. Ltd.
  • Seymour Schulich, chairman of Franco-Nevada and Euro-Nevada
  • Pierre Lassonde, president of Euro-Nevada and Franco-Nevada
  • Mining Reporter, Toronto

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