In Nevada, gold mining remains the heartbeat of American gold production as it accounts for 70% of the countries annual output. The United States is the 4th largest gold producing country in the world.
Nevada is famous for the Carlin Trend, which has produced more gold than any other mining district in the United States. The Carlin and other mines along the trend pioneered the method of open-pit mining with cyanide heap leach recovery that is today used at large low-grade gold mines worldwide.
Betze-post pit, a part of Barrick Gold’s Goldstrike operation located on the Carlin Trend, Nevada
Major mining companies such as Newmont Goldcorp and Barrick Gold Corporation operate many of the state’s gold mines, with new deposits still being discovered and developed within Nevada by a wide range of companies.
One of those companies is Golden Independence (CSE: IGLD, OTC: GIDMF), which is aggressively advancing its Independence Project located in the Battle Mountain mining district in Northern Nevada.
The project is comprised of 640 acres with the asset carrying a historical resource of 210, 400 ounces of gold at 0.5 g/t in the measured and indicated category, and 862,000 ounces of gold at 2.9 g/t in the inferred category.
The project is located 0.5 km to the southwest of the Phoenix pit of Nevada Gold Mines (Newmont / Barrick JV). The asset is an option agreement that allows the company to earn up to 75% interest in the project (please click here for more information).
The company currently has a market capitalization of $15 million dollars, which is pretty unbelievable, considering that the asset is located inside the plan of operations of the world’s largest gold producing complex.
This gives the company a significant advantage relative to other development companies as it accelerates the permitting process of actually taking an asset to production.
Typically, environmental permitting needed to build a mine in Nevada averages between 5 to 7 years. But due to where the project is situated, which is inside Nevada Gold mine’s permitted plan of operations, the company should be able to attain a heap leach mining permit in as little as 18 to 24 months. This eliminates one of the biggest hurdles to shareholders as production can be accelerated if the company can prove the resource base economically viable.
After the updated resource estimate, the company has a rich catalyst pipeline with additional metallurgical test work, advancing the permitting process, and tabling a preliminary economic assessment on the project, allowing the company to understand the economics of the asset.
If these milestones are achieved, the company could be in a situation in a few years where it could be one of Nevada’s newest gold producers.
At the present valuation of $15 million, it presents investors with a unique opportunity to own a company with indicated and inferred resources of just over 1 million ounces, which is trading at a significant discount to many of its peers in the industry.
I recently caught up with Mr. Henneberry, who is the Chief Executive Officer of the company and asked about upcoming work plans:
Thank you, Mr. Henneberry, for taking the time to provide our readers with an update on Golden Independence alongside a general overview of the company.
Can you give our readers a bit of a background on the Independence project, which resides in gold-rich Nevada?
The Independence gold-silver project is 0.5 km southwest of the Phoenix pit of Nevada Gold Mines (Barrick / Newmont JV), ~14 miles south of Battle Mountain in north central Nevada. Three distinct deposit types are present; a near-surface epithermal system and a deeper high-grade, gold-rich skarn-hosted system, and a gold-copper porphyry system.
The Independence mine produced intermittently from 1938 through 1987 from several miles of underground workings developed along a 1,500-foot (457 meter) strike length. Reported production by prior operators totaled 11,029 ounces gold and 750,200 ounces silver.
Over 210 drill holes were completed from 1973 to 2017. Gold mineralization in the deep skarn has been encountered in an area more than 1,400 feet wide by 3,400 feet long. The majority of the skarn target is ~2,800 to 2,900 feet beneath the surface. Shallow oxide drilling subsequent to the 2010 historic resource expanded mineralization to the north and south and remains open in both directions.
Can you go through the strategic advantage the company has vs. most regarding location, asset quality, and permitting process?
There are three gold endowments in the World: the Archean of Canada and Australia, the Birmian of West Africa and northeastern South America and Nevada. Gold is where you find it and you find it in these three endowments. Considering we are 3,000 feet from the Nevada Gold Mines (NGM) Barrick-Newmont Phoenix Fortitude Mine, we have a pretty good neighborhood.
We currently have indicated and inferred resources of over one million ounces and see considerable upside, so we feel this is a high-quality asset. IGLD is the first time the Independence project has been held in a public company.
With respect to the permitting process, I think the main point is all of the environmental and socio-economic surveys and analyses have been completed for the area as part of the Nevada Gold Mines (NGM) Barrick-Newmont joint venture Permitted Plan of Operations (POP) approval. While we have to do these surveys on our own behalf, the fact drilling and mining has already been approved for the entire POP, indicates permitting for Independence should be a simple straight-forward process, where we complete the necessary surveys and permitting applications and they are approved as they lie within the existing POP.
With the historic resource being comprised of a shallow oxide epithermal mineralization and deeper sulphide Carlin gold skarn mineralization, it is key to note that mineralization remains open along strike and at depth.
Early in October, the company commenced drilling on the project with the intention of building on its current resource and publishing an updated resource estimate in early 2021.
How is the drill program going so far?
The drill program is progressing nicely. We have completed two 14-day shifts of drilling, and currently have 7 holes (the first 14-day shift) at the ALS prep lab in Elko.
The company recently expanded its land position for the Independence project, which brings the claim package to 640 acres, which solidifies a strong land position.
Can you touch on where the project is located in relation to Nevada Gold Mines’ (Barrick / Newmont JV)?
We are 3,000 feet from the Nevada Gold Mines (NGM) Barrick-Newmont Phoenix Fortitude Mine within their permitted plan of operations. We anticipate a relatively straight forward permitting process. If we are as successful as we believe we will be, we could find ourselves a ready suitor.
With the company being fully financed for the on-going drill program, can you touch on the company’s catalyst-rich pipeline in the coming months?
Should market participants be expecting lots of news flow from the company in the coming weeks/months?
We expect a steady flow of news from the drilling once the first results are received. COVID has led to disruptions at all the assay labs, but our Nevada manager has a good relationship with the Elko prep lab, so we are hoping to see preliminary results in mid December, with results coming steadily after the initial release.
The company currently trades on the CSE under the ticker IGLD and on the OTC under the ticker GIDMF. On a fully diluted basis the company has 48.6 million shares outstanding.
Please contact [email protected] if you have any questions.
Legal Notice / Disclaimer
The Gold Telegraph, goldtelegraph.com, hereafter known as Gold Telegraph.
Please read the entire Disclaimer carefully before you use this website or read the newsletter. If you do not agree to all the Gold Telegraph Disclaimer, do not access/read this website/newsletter/article, or any of its pages. By reading/using this Gold Telegraph website/newsletter/article, and whether or not you actually read this Disclaimer, you are deemed to have accepted it.
Any Gold Telegraph document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.
Gold Telegraph has based this document on information obtained from sources he believes to be reliable but which has not been independently verified. Gold Telegraph makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold Telegraph/Author only and are subject to change without notice.
The Gold Telegraph/Author assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, The Gold Telegraph/Author assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this The Gold Telegraph/Author report.
The Gold Telegraph/Author is not a registered broker/financial advisor and does not hold any licenses. These are solely personal thoughts and opinions about finance and/or investments – no information posted on this site is to be considered investment advice or a recommendation to do anything involving finance or money aside from performing your own due diligence and consulting with your personal registered broker/financial advisor. You agree that by reading The Gold Telegraph/Author articles, you are acting at your OWN RISK. In no event should The Gold Telegraph/Author be liable for any direct or indirect trading losses caused by any information contained in The Gold Telegraph articles. Information in Gold Telegraph/Author articles is not an offer to sell or a solicitation of an offer to buy any security. The Gold Telegraph/Author is not suggesting the transacting of any financial instruments but does suggest consulting your own registered broker/financial advisor with regards to any such transactions
The author does own shares of Golden Independence Mining Corp (CSE: IGLD). Golden Independence is a paid advertiser on the Gold Telegraph.