The Rawhide mine is located approximately 50 miles from Fallon, Nevada, within the prolific Walker Lane gold-silver belt, amidst multiple historic mines that produced more than 1 million ounces of gold (e.g., Comstock, Round Mountain, Borealis, and Tonopah). The Rawhide mine is a fully permitted open pit heap leaching operation that is currently producing gold and silver doré. Rawhide was formerly operated as a subsidiary of Kennecott Corporation prior to Coral Reef Capital, a private equity firm, partnering with the Rawhide mine management team to acquire the property from Rio Tinto Plc in 2010. Currently, Coral Reef Capital is the controlling shareholder of Rawhide Acquisition Holding LLC. In Q4 2019 EMX made the strategic investment in the Rawhide operation as part of its acquisition plan focusing on near-term cash flowing assets. See Company News Release dated December 19, 2019 for more information.
EMX initially acquired a 19.9% equity interest in Rawhide Acquisition Holding LLC, a privately-held Delaware company that owns the Rawhide gold-silver mining operation through wholly-owned subsidiary Rawhide Mining LLC., and has since increased its equity interest to 39%
The Rawhide mining operation is located in the Walker Lane’s Regent mining district. Gold was discovered at Rawhide in 1906, with intermittent small scale production until Kennecott undertook open pit mining from 1990-2003, producing 1.4 million ounces of gold and 10.9 million ounces of silver from 88 million tons. Residual heap leaching until 2010 recovered an additional 200 thousand ounces of gold and 1.9 million ounces of silver. EMX has been advised by RAH that from 2011-2018 its mining at the Rawhide property totaled 4.9 million tons, with 160,000 ounces of gold and 1.8 million ounces of silver produced.
Gold-silver mineralization at Rawhide has been historically mined from a series of low sulfidation epithermal veins, vein swarms and replacement zones hosted by various basaltic to rhyolitic volcanic units. The lower grade bulk tonnage mineralization that is the focus of current operations occurs between structures within permeable volcanic units and at intrusive contacts. Rawhide Mining received a mine expansion permit earlier this year covering the Regent satellite deposit, and open pit mining has recently commenced. Regent highlights the upside exploration and production optionality of EMX’s strategic investment in the Rawhide mining operation.