The Silver Peak royalty asset covers an 84-hectare land position within the Silver Peak advanced exploration project located in the Red Mountain area of Nevada, USA. EMX holds a 1.5% NSR royalty on all the minerals produced from 10 mining claims on the Silver Peak property that cover the 16-to-1 Mine. The property is currently owned and operated by Millennium Silver Corp. (TSX-V: MSC; “Millennium”), who has the option to repurchase 0.5% of the royalty for US$500,000 at any time.
Millennium is conducting brownfields exploration at the past producing Nivloc and 16-to-1 silver-gold mines. Silver Peak is a known low-sulfidation epithermal silver-gold system with quartz-adularia veining and stockwork zones hosted within steeply dipping normal faults. Thirteen additional prospects for epithermal style mineralization exist on the property.
Historical production at the Nivloc Mine between 1937 and 1943 totaled 4.7 Moz Ag and 18,800 oz Au. Historical production at the 16-to-1 Mine between 1982 and 1986 totaled approximately 5 Moz Ag and 34,000 oz Au before the mine was shut down due to low metal prices. The Nivloc structure has been traced at surface and in underground workings for 2.5 km and has only been tested by Millennium drilling along a 400-meter interval. The 16-to-1 Mine has existing historical resources in two separate targets, both of which have potential for expansion along their strike, indicating the potential for substantial resource expansion at Silver Peak.
The current inferred resource** at Silver Peak is 2.7 Mt at an average grade of 96.9 g/t Ag and 0.67 g/t Au, which corresponds to a contained metal total of 8.3 Moz Ag and 57,000 oz Au. Millennium plans to initiate the pre-feasibility study required for the next phases of exploration and development at Silver Peak, drill test high priority targets elsewhere on the property, and continue expanding the resource potential of the Nivloc Zone.
**The above resource data was from the International Millennium Mining Corp. 2019 NI-43-101 Technical Report on the Silver Peak Project, Esmeralda County, Nevada, USA. Effective date: March 28, 2019. QP: Seymour M. Sears, P. Geo. and Joan M. Barry, P. Geo. EMX has not done sufficient work to classify the resource as compliant with NI 43-101 regulation. However, EMX believes these results to be reliable and relevant.