Privately held Central Nevada Gold has outlined an initial gold resource at Mule Canyon in Nevada as it works towards a construction decision in 2028 on restarting the former open-pit operation. The project near Battle Mountain hosts 11.9 million indicated tonnes grading 1.73 grams gold per tonne for 663,000 oz., according to an estimate effective July 1 and released Wednesday. A further 20.8 million inferred tonnes at 1.52 grams contain 1.02 million ounces. “Our next priority is to demonstrate the technical and economic viability of recovering a substantial proportion of the resource over a long mine-life,” CEO Simon Griffiths said in a release. The estimate gives the Toronto-based developer a basis for planning a return to production. The next steps include upgrading inferred material, which accounts for about 61% of the contained gold, establishing the economics and securing restart permits. Restart studies A prefeasibility study and permitting are underway, alongside infill drilling aimed at upgrading inferred resources to the indicated category. Central Nevada reported $18.5 million (C$26 million) in working capital. SRK Consulting prepared the estimate using a cut-off grade of 0.5 gram gold per tonne. The resources sit within conceptual pit shells based on a $3,800-per-oz. gold price and assumed metallurgical recovery of 93%. Grade sensitivity At a higher cut-off of 1.3 grams, the estimate includes 6.34 million indicated tonnes grading 2.46 grams for 502,000 oz. and 8.52 million inferred tonnes at 2.48 grams for 680,000 ounces. That threshold retains about three-quarters of the indicated gold and two-thirds of the inferred gold reported at the base cut-off, while reducing the tonnage included. It is a sensitivity case, rather than a selected mine plan. The company plans exploration and resource expansion drilling next year. Historical drill holes averaged 152 metres deep, and several areas remain open along strike and at depth, it said. Mineralized intercepts outside the conceptual pits provide targets for further work. Restart funding Central Nevada acquired Mule Canyon from Newmont (NYSE, ASX: NEM) earlier this year. The company reports about 500,000 oz. of historical production and says the site has grid power, water rights and an active federal plan of operations. A February fact sheet from Nevada’s Division of Environmental Protection described Mule Canyon as permanently closed and said proposed on-site processing facilities had never been built and were no longer authorized under its state water pollution control permit. That permit is separate from the federal plan of operations cited by Central Nevada. The fact sheet predates the acquisition and does not establish the project’s current restart approval status. The company says it is advancing permits for a potential restart. On Sept. 1, Central Nevada completed a $33-million financing led by a fund managed by Orion Mine Finance Management. The company said it expected the proceeds to fully fund drilling, the prefeasibility study and permitting. Orion invested $25 million through equity and a prepaid gold and silver stream, with strategic shareholders providing the remaining $8 million through a private placement. The stream entitles Orion to 1.5% of Mule Canyon’s gold production and 4.8% of its silver output, subject to adjustments under the agreement. Central Nevada said in September it was also evaluating a listing on a North American stock exchange as it pursued a strategy of building a multi-asset precious metals producer in Nevada.
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