Phenom Resources has expanded its King Solomon Gold Project in central Nevada through the acquisition of 26 additional claims, covering around 210ha.
The move increases the total area of the project to 1,651ha and positions the company for further exploration and development in the region.
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Phenom entered a four-year option agreement with a private vendor in this regard.
To fully exercise this option, Phenom will have to pay a total of $105,000 (C$143,692) over the four-year term.
The vendor will retain a 3% net smelter return (NSR) royalty from any minerals produced on the property.
However, Phenom retains the right to purchase up to a 2% NSR for $3m, reducing the vendor’s royalty to 1%.
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By GlobalDataAdditionally, the company is obligated to make advanced royalty payments following a set schedule, starting at $50,000 per year from years five to ten and increasing incrementally thereafter.
The King Solomon Project is situated 32km south of Phenom’s Dobbin Gold Project.
Both projects are known for hosting a regional-scale Carlin-type gold system, which is a highly sought-after geological setting for gold mining due to its potential for large, low-grade gold deposits.
The King Solomon Project is also located 45km east of the Round Mountain gold deposit owned by Kinross Gold.
Geological studies indicate that the area is covered by a thin layer of Tertiary volcanics, approximately 60m thick, which overlies a lower plate carbonate package.
The presence of highly silicified volcanics and limestone units is indicative of mineralised zones rich in gold, silver and other elements typical of Carlin-type gold systems.
Exploratory drilling has revealed promising results, with many holes intercepting significant near-surface mineralised zones. Notable intercepts include 67.1m at 0.5 grams per tonne (g/t) of gold (Au) and 80.8m at 0.8g/t Au, demonstrating the potential for economically viable gold extraction.
