Endeavour Silver Corp (NYSE: EXK) signed an agreement with Canamex Gold Corp. to acquire Canamex’s Burner property at Nye County, Nevada, for $10 million in all-cash transactions.
Acquiring 100% interest: Endeavour Silver is expected to acquire a 100% interest in Canamex’s Burner property, per the agreement for $10 million. The property or asset is located at Nye County, Nevada, around 180 km (kilometers) southeast of Reno. The mining area is spread across 1,457 hectares on patented and unpatented claims. The asset is ideally located in a mineral belt consisting of various producing mines. In addition, the mine is readily accessible. Power is a crucial input for any mine operations. The Burner Gold mine already has access to high voltage power. In addition, water rights for the same have also been secured. As per the geology report, three different gold areas have been identified within an area of 3 km.
Huge reserves and strong potential to grow: The Bruner Gold Project has a historical reserve of 342,000 ounces of gold, as per the release. It is contained in 17.5 million tonnes with 0.61 grams of grade in three zones, HRA, Penelas, and Paymaster. Canamex Gold estimated the reserves details. The management stated that the project has a strong potential to add more precious metal (gold and silver) resources, as depicted by surface sampling, between the three stated zones. However, the company will not rely on the historical geology report given by the Canamex and instead conduct its drilling work to upgrade the historical estimates. The acquisition is expected to add a feather to the company mining program. The project is expected to help the company achieve a five-year vision to become a key player in the silver producing company. Furthermore, the company also plans to discover more potential mining areas for precious metals and improve efficiency to increase the near-term production and organic growth. The company is expected to take the full benefit of the asset and build an effective mining operation in Nevada.