PolarX Ltd (ASX:PXX) (FRA:PX0) has recently secured an option to acquire a mining lease agreement over the high-grade Humboldt Range Gold-Silver Project in northwest Nevada, which comprises 177 lode mining claims and complements the company’s existing Alaska Range Project.
The company plans to leverage its existing management team at its Alaska Range Project with most of the team in relative proximity to and familiar with the region.
Additionally, the seasons in Nevada allow work from April to December each year, enabling the company to have news flow year-round on its projects.
Humboldt Range prospectivity
The Humboldt Range project has exceptionally high surface grades from rock chip sampling and mine dumps exceeding 100 g/t gold along with high-grade silver, lead, and zinc.
It is also surrounded by two large-scale active mines - the Florida Canyon gold mine and the Rochester silver-gold mine - contains geology consistent with bonanza-style epithermal gold-silver mineralisation, which is well known in Nevada.
This gives PolarX confidence that the geology is conducive to significant modern scale operations.
PolarX has entered into an option agreement with Armada Mining Inc, which holds the rights to explore and develop the Humboldt Range Project, pursuant to a mining lease agreement with the registered owner.
The initial term of the mining lease agreement expires on August 13, 2030, but can be extended for two further periods of up to 10 years each.
PolarX paid an initial fee of US$35,000 to secure an exclusive option over the mining lease agreement for up to 120-days whilst it conducts due-diligence investigations to further verify previous exploration results and confirm ownership of the underlying lode claims.
Due diligence is expected to be complete by April 30, 2021.
Historical data from Victoria Gold Corp, which briefly evaluated the area and collected rock-chip samples from outcropping quartz veins and sampled mine dumps near many of the abandoned underground workings and adits, is being reviewed by PolarX.
Notably, there are clusters of very high gold grades associated with narrow veins in the Indian Ike and Lois Vein mine dumps and veins in the centre of the Black Canyon Claims, where bonanza gold grades have been identified.
Of the 227 samples previously collected, 44 returned assays over 1g/t gold, of which 19 were above 10g/t gold.
PolarX intends to immediately commence an evaluation of the length and continuity of the vein sets and a determination of whether the altered rock between the veins contains economically viable grades of gold and silver amenable to bulk mining.
Alaska Range results
Last month the company received more high-grade gold and copper assays which extend mineralisation by a further 200 metres at the Zackly East prospect within its Alaska Range project in Alaska.
Zackly East sits immediately adjacent to the Zackly Main skarn deposit, where the JORC inferred resource stands at 213,000 ounces of gold, 41,000 tonnes of copper and 1.5 million ounces of silver.
The company has completed the 2020 drilling program of 23 holes for 3,130 metres with assays for the first 15 holes received and assays from a further seven holes are pending.
Drilling at the prospect has returned an assay of 1.5 metres at 5 g/t gold and 3.15% copper from 11.6 metres deep within a 57-metre-long zone of elevated gold and copper in drill hole ZX20056.
Un-tested targets at Zackly East, including structures along strong magnetic gradients, and a possible porphyry target to the north and east of drilling.
At Alaska Range, the company believes further drilling to test the eastwards extension of the structure at the Zackly Main Skarn is warranted - along with testing of a similar structure a further 100 metres to the north.
In addition, the recently acquired ultra-high-resolution magnetic data has highlighted a potential porphyry target to the north and east of current drilling, in addition to the known porphyry targets at Mars, Jupiter, Saturn, and Gemini at Alaska Range which has never been drilled and is a high priority for follow-up.
At the Humboldt Range Project, in addition to evaluating individual high-grade veins as possible mining targets, PolarX intends to evaluate these structural corridors to determine if modern-scale bulk mineable widths and grades are present.
This will include geological mapping, rock chip and channel sampling and ground geophysics and the company has commenced staking around 100 additional lode claims in the Fourth of July area to consolidate the landholdings.