Sierra Nevada Gold Strikes Gold in Old Mine Tailings at New Pass Project
Sierra Nevada Gold (ASX: SNX) has uncovered significant gold discovery by Sierra Nevada Gold from historic tailings at its New Pass Project in Nevada, with sampling returning average grades of 1.55g/t gold across four historic tailings dams. These encouraging results could provide the company with a potential revenue stream to complement its planned trial mining operations.
High-Grade Gold Recovery Potential from Historic Waste
The company recently completed a detailed auger sampling program of four historic tailings dams at its New Pass Project in central Nevada. The program involved drilling 66 six-inch diameter auger holes to approximately 2 meters depth across the tailings storage areas.
Results highlight the considerable gold values left behind by previous mining operations:
| Tailings Dam | Average Gold Grade | Number of Samples |
|---|---|---|
| Dam 1 | 1.87g/t Au | 49 |
| Dam 2 | 1.05g/t Au | 17 |
| Dam 3 | 1.51g/t Au | 37 |
| Dam 4 | 0.96g/t Au | 10 |
| Overall | 1.55g/t Au | 113 |
Peak gold values reached as high as 4.09g/t gold, with the tailings dams generally exceeding 2 meters in depth. Dam 1 is estimated to be up to 4 meters deep based on historical information, suggesting additional mineralised material at depth.
"The initial auger sampling assays of the tailings at New Pass are encouraging, as we continue with plans to conduct a bulk ore sampling program on the high-grade veins to test the potential for re-establishing gold production at the New Pass mine," commented SNX Executive Chairman Peter Moore. "Reprocessing the tailings has potential to generate revenue in conjunction with the planned trial mining and bulk testing program."
Understanding Tailings: A Second Chance at Gold Recovery
Tailings are the materials left over after processing ore to extract valuable minerals. In historic mining operations, especially those from the early to mid-20th century, extraction methods were often less efficient than modern techniques, leaving significant amounts of gold in the waste material.
These historic tailings represent an opportunity for modern mining companies like Sierra Nevada Gold. Using contemporary processing methods, companies can economically recover gold from previously processed material without the costs associated with new mining operations. This approach also provides environmental benefits by cleaning up historic mining waste.
SNX's sampling revealed that higher-grade gold was often returned from coarser fractions (larger than 1cm), indicating insufficient grinding in the historical processing operations. This suggests that simple regrinding and modern processing could be effective in recovering the remaining gold.
Project Progression and Timeline
Sierra Nevada Gold is advancing on multiple fronts at the New Pass Project:
-
Tailings Processing Options: The company will investigate processing options for the tailings based on these positive initial results
-
Underground Mining Development: SNX is progressing underground mining options for the currently accessible high-grade ore within the Superior Mine
-
Permitting Process: Permitting to allow for the re-opening of the Superior Mine is underway, with updates expected shortly
-
Drill Position Planning: The company has completed design of drill positions and hole planning so work can begin immediately once permits are received
The New Pass Project: Historical High-Grade Gold Production
The New Pass Project has a rich history of high-grade gold at fortitude north, with the mining center historically producing gold at an average grade of 17g/t Au. The project is centered on the Austin Trend, which runs parallel to the prolific Carlin and Battle Mountain Trends of central Nevada.
Previous exploration drilling by SNX at the Superior Vein returned impressive intercepts including 1.22m at 26.7g/t gold from 186.53m depth, highlighting the potential for continued gold-silver veining at Tigertown.
Furthermore, the project contains 6.5km of largely unexplored structurally prospective strike, most of which is covered by thin post-mineral sediments and volcanics, presenting significant exploration upside.
Why Investors Should Watch Sierra Nevada Gold
Sierra Nevada Gold represents a compelling investment opportunity in the precious metals sector for several reasons:
-
Near-Term Revenue Potential: The high-grade tailings recovery project could provide early cash flow with minimal capital investment
-
Proven High-Grade Gold District: Historical production and recent drilling confirm exceptional gold discovery by Sierra Nevada Gold at New Pass
-
Dual Development Strategy: The company is simultaneously pursuing tailings reprocessing and underground mine development, providing multiple pathways to production
-
Favorable Jurisdiction: Nevada consistently ranks as one of the world's top mining jurisdictions, offering political stability and established mining infrastructure
-
Exploration Upside: With 6.5km of largely unexplored prospective strike length, the potential for additional gold-copper discoveries in Queensland and similar regions remains high
SNX is uniquely positioned among junior gold explorers by having both near-term production potential from the tailings project and significant exploration upside across its Nevada portfolio of five 100%-controlled projects.
The company's strategic focus on both recovering gold from historic waste material and developing new high-grade resources demonstrates a pragmatic approach to creating shareholder value in the current gold market environment. Similar to how S2 Resources launches drilling campaigns across multiple projects, SNX is methodically exploring its assets to maximize shareholder returns.
In addition, the company's approach to seeking approval for drilling targets mirrors strategies employed by other successful exploration companies like ZMI securing drilling approval for their untested anomalies, demonstrating industry best practices in resource exploration.
Ready to Capitalise on the Next Major Gold Discovery?
Don't miss potential high-return opportunities from mineral discoveries like Sierra Nevada Gold's promising results at New Pass. Visit Discovery Alert's dedicated discoveries page to understand why major mineral discoveries can lead to significant market returns, with real-time alerts powered by our proprietary Discovery IQ model.
