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Highlights

  • SNX acquires New Pass gold mine in Nevada, ending lease and securing full ownership of high-grade historic site.

  • Acquisition includes 12 additional claims, infrastructure, and stockpiles, forming a larger New Pass project.

  • Company to begin bulk sampling and exploration, targeting the Superior high-grade gold vein.

Sierra Nevada Gold Inc (ASX:SNX) has taken a major step in expanding its presence in the U.S. southwest by securing full ownership of the New Pass gold mine in Nevada—an asset with a significant  production history and promising future potential.

The acquisition ends a long-term lease agreement with the family of Don Jung, a mining engineer and the previous owner of New Pass. SNX had been operating under this lease-purchase option since 2012 but has now formally acquired the site, including its mining infrastructure, associated property, and historical stockpiles. As part of the deal, the company has also acquired a royalty interest over 12 additional claims at the site.

This strategic move folds the mine and surrounding claims into what SNX now refers to as its “larger New Pass project.”

The New Pass mine has a notable legacy, with historic gold production averaging 17 grams per tonne (g/t)—a high-grade output by industry standards. SNX believes that untapped potential remains within the underground workings, particularly at key locations such as the Superior vein.

SNX is now preparing to begin a comprehensive site assessment, including bulk sampling activities at existing, accessible deposits. A primary target is the Superior high-grade gold vein, which is exposed from the Level 4 adit, enabling immediate sampling without the need for extensive new development.

Executive Chairman Peter Moore emphasized the significance of the acquisition and the opportunity it provides the company to revisit and potentially reactivate a proven gold-producing site.

“Purchasing the key claims covering the historic high-grade New Pass Mine is a very positive step for the company,” Moore said. “It provides SNX the opportunity to assess potential for re-establishing gold production from existing underground workings.”

Moore noted that preliminary exploration work and detailed underground surveys conducted in recent years suggest that the mine could be reopened, pending further analysis. He expressed optimism that evaluation efforts could progress quickly.

“The company looks forward to expediting its evaluation of New Pass over the coming months,” he added.