A chaotic year has sent gold and silver prices up to some of their highest points in years, and created new opportunities for exploration activities. In many cases, however, these new opportunities are coming from old sources. The globe is scattered with past-producing mining properties that have been shut down either because the exploration and production technology of the time wasn’t able to fully realize the property’s potential, or because resource values were too low to make exploration and development worthwhile. Past-producers often have the advantage of historic exploration data, and with resources values near historic highs, they can offer excellent opportunities for value. For companies like Blackrock Gold Corp. (TSXV:BRC) (OTC:BKRRF), Kirkland Lake Gold Ltd (TSX:KL) (NYSE:KL), AngloGold Ashanti (NYSE:AU), Yamana Gold (NYSE:AUY) (TSX:YRI), and Premier Gold Mines (TSX:PG) (OTC:PIRGF), what’s old is new again.
Blackrock Gold Corp. Revitalizes the Historic Tonopah Silver District
The Tonopah Silver District is the second-largest silver district in the State of Nevada. When the district was discovered in 1900, Tonopah was considered the state’s last great silver district. Tonopah is still, to this day, considered to be one of the most desirable mining districts in the state. To date, the Tonopah Silver District has produced more than 174 million ounces of gold and 1.8 million ounces of silver. Despite this, production at Tonopah shut down nearly 100 years ago. In February, however, Blackrock Gold Corp. (TSXV:BRC) (OTC:BKRRF) consolidated the entire western half of the Tonopah Silver District. The company’s Tonopah West land package includes 97 patented and 17 unpatented mining claims covering 4.5 sq km (1,100 acres).
Blackrock is the first company to bring modern exploration to this historic mining district. Blackrock announced its first drill results from the Tonapah in July, reporting assays of 2,215 G/T silver equivalent over 3.0 meters within 4.6 meters of 1,577 G/T silver equivalent. They also hit 29 meters of 965 G/T silver equivalent in the same drillhole! The company announced its second drill results, and second discovery of their maiden program from Tonopah in early September, drilling 2,215 G/T silver equivalent over 3.0 meters within 4.6 meters of 1,577 G/T silver equivalent, which was found over a mile away from the first discovery.
“As the first group to target the historic workings within this prolific, historic silver district in the heart of Nevada, our first drillhole, having encountered multiple significant high-grade veins, is nothing short of remarkable,” Blackrock President and CEO Andrew Pollard said on the company’s initial drill results.
Past-Producers Reopen Around the World
On August 10, Premier Gold Mines (TSX:PG) (OTC:PIRGF) announced that the company had entered into a definitive purchase agreement with Waterton Global Resource Management to acquire a 100% interest in the Getchell gold project, located in the Getchell gold belt near Winnemucca in Nevada. Getchell previously operated from 1980 to 1999, and, according to the company, has a long track record of successful gold production.
Yamana Gold’s (NYSE:AUY) (TSX:YRI) El Peñón mine in Chile has been producing high-grade gold and silver continuously since 1999. However, in 2020, Yamana has been finding success by returning to past-producing areas of the mine. In September, the company announced that exploration results had highlighted strong potential in expanding historic sectors of the mine. These historic expansion zones are located adjacent to existing infrastructure, which the company says would allow them to increase productivity and extend the mine’s lifespan while lowering costs.
In December 2019, AngloGold Ashanti (NYSE:AU) poured the first gold from the past-producing Obuasi mine in Ghana since the mine’s relegation to care and maintenance in 2016. The Obuasi mine dates back to 1897 and is expected to produce as much as 400,000 ounces of gold per year now that it has been reopened.
In 2019, Kirkland Lake Gold Ltd (TSX:KL) (NYSE:KL) reopened the Holloway mine, part of the company’s Holt Complex in Matheson, Ontario. The Holloway mine was placed on care and maintenance in December 2016 around the time of Kirkland’s acquisition of the property via its acquisition of St Andrew Goldfields Ltd. The Holloway mine has been a key part of Kirkland Lake Gold’s exploration efforts in 2020.
Companies like Blackrock Gold Corp. know that their historic assets still have plenty more to offer. The recent rise in gold and silver prices is revitalizing the mining industry and creating a rare opportunity to extract huge value from past-producing assets.
For more information about Blackrock Gold Corp., click here.
Featured image: DepositPhotos © Iurii
Disclosure:
1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.
2)The Article was issued on behalf of and sponsored by, BlackRock Gold Corp. Market Jar Media Inc. has or expects to receive from BlackRock Gold Corp.’s Digital Marketing Agency of Record (Native Ads Inc.) one hundred nineteen thousand, five hundred twenty USD for 15 days (11 business days).
3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.
4) The Article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.’s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on MicroSmallCap.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on MicroSmallCap.com.
5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.
