There has been considerable attention on the gold mining sector from among investors over the course of the past few weeks, and it is expected to continue given the current rally in gold prices. One of the companies that could well be worth tracking at this point is Tonogold Resources Inc. (OTC: TNGL). On April 10, the company came into focus in a big way after it announced that it had signed a term sheet pertaining to the 100% acquisition of JAG Minerals Pty Ltd.
It was also noted in the news release that JAG Minerals Pty Ltd. also held a 100% interest in JAG Minerals USA Inc. The acquisition could be a crucial one for Tonogold Resources since it would allow the company to speed up the exploration and development of the Marysvale hard rock vanadium/uranium mine, the uranium roll-front SKY Project, and as many as 13 historic high-grade vanadium/uranium mines located in San Juan County, Utah, and Montrose County, Colorado.
In this context, it may be a good idea to get a better idea about the Marysvale Project. The company announced yesterday that the property was situated adjacent to the central mining area. The area in question boasts as much as 1.39 mlb of estimated past production uranium at 0.22%. The project produced all that between 1949 and 1966.
JAG Minerals USA had leased as many as 20 unpatented mining claims at the property in addition to one state lease. Between 1977 and 1981, the project was drilled by Phillips Uranium. As many as 127 historical drill holes had been completed by Trigon Exploration Ltd., Phillips Uranium, and Minex between the years 1977 and 2007. However, follow-up drilling activities would need to take place in order to confirm the resource estimates prior to 2007.
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