Sierra Nevada Gold raises $2m for high-grade silver hunt at Blackhawk

Sierra Nevada Gold raises $2m to commence 1,500m drilling program at Blackhawk project
Targets include up to 1270g/t silver hit at historic Endowment mine
Project hosts extensive 22.5km of outcropping mineralisation in veins at surface

Special Report: Sierra Nevada Gold has received firm commitments to raise A$2 million via a placement at A$0.05 per share to advance drilling at the Blackhawk silver-gold project in Nevada, USA.

Earlier this year the company announced plans to follow up a pre-IPO drill hole which returned up to 1270g/t silver at the historic Endowment mine, part of the epithermal project which historically produced 70,000oz gold equivalent, mostly between 1860-1880.

The hit is about 150 metres below the deepest level of the mine, in an area that’s seen little modern-day exploration since the 1980s.

Other notable intersections included up to 12m at 219g/t, with 5.0m at 479g/t.

But that’s not the only promising result to follow up. More recently, Sierra Nevada Gold (ASX:SNX) returned high-grade silver assays up to 5,180g/t silver, 2.82% copper and 384g/t silver, 0.2% copper from mine dumps and outcrop at the Two Shovels Mine.

It could be perfect timing for the company to make a silver discovery, with prices at 11-year highs, currently sitting at US$31.59/oz.

SNX will use proceeds to fund a 1,500m drilling program along with an expanded exploration program, additional surface field work, target generation, and for general working capital.

Sierra, Nevada, Gold, ASX, SNX, Balckhawk, Project, Raises — Location of SNX projects in Nevada, USA showing the location of the major gold, silver and copper deposits. Pic: SNX

Prospective for large-scale silver

SNX has mapped extensive outcropping silver and gold mineralisation in veins at surface over 22.5km, which represent priority drill targets for the upcoming drill campaign.

It’s an extensive vein network, with known mineralisation having sat largely untouched since mining ceased in the area in the 1920s.

Drilling is set to commence as soon as possible to test the outcropping mineralisation at Blackhawk, which has significant potential to host a large scale, silver-gold dominant polymetallic system.

“With these funds, we are well-positioned to accelerate our exploration efforts at Blackhawk to target the high-grade silver and gold mineralisation in veins at surface,” SNX chairman Peter Moore said.

“The results received from the outcropping mineralisation at Blackhawk were exceptionally high grade and extend over a significant area, representing significant value for SNX.

“We are very excited to commence our drill program imminently to unlock the potential within this system.”

This article was developed in collaboration with Sierra Nevada Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.