Maggie Property.
This property is located in Eureka County, Nevada, approximately 7 miles north of Carlin, Nevada. The property lies just south of Newmont Mining’s largest open pit gold quarry deposit.
In the early years, all mines were open pit at or near surface deposits located within Roberts Mountain Thrust Fault “windows.” This is where overlain upper plate rocks had been eroded away to expose the underlying gold bearing oxide ores. These near surface deposits were large and easy to mine and the gold easily extracted. The microscopic size of the gold particles would quickly dissolve in a weak cyanide solution as the solution permeated the porous rock. Once the gold was isolated in a solution it was easily converted into dor’e bars. These deposits were very low cost to operate, but still profitable even though gold was only $35.00 per ounce.
As gold prices increased deeper and lower grade deposits could now be mined. Larger and deeper open-pit mines evolved, Newmont’s largest open pit the Gold Quarry Mine continues to operate today is a perfect example as they continue to go wider and deeper. These shallow low grade systems of disseminated low grade gold are now more difficult to find. They still remain the main source of gold revenues in the district. As these open pit mines continue to deepen higher grade underground mines have evolved. Bullions Royalty from Newmont’s Leeville Mine and Ease Ore Body come from these deeper and richer underground mines.
The Gold Quarry Open Pit has become a lot deeper and very near our Maggie creek royalty border. The Carlin Formation which lies over the potential ore zones may make open pit mining on our Maggie Creek property uneconomical but very susceptible to underground mining.
The property is in a straight line from Newmont’s Tusc Open Pit to the Mac Open Pit to the Gold Quarry Mine. The Gold Quarry Mine is located less than one half mile from the northern border of the two square miles of which we hold a 3% net smelter royalty interest.
The company acquired the interest in an agreement with Newmont Mining dated April, 1990. Bullion Management believes this property has significant potential to produce royalty revenues in the future.
