Open Gold Corp. is a publicly listed company on both the TSX-V and the Frankfurt Exchanges. The recently announced LOI signed with General Metals for the Independence property and the acquisition of the Mitchell property has created an opportunity for shareholders to participate in the transitional upside inherent in near term production potential. Open Gold has embarked on a strategic acquisition campaign designed to place it at the forefront of the turning market and rising valuations expected in 2013. Current market conditions favour those companies looking to grow through acquisition of near term gold assets in safe jurisdictions. Open Gold will aggressively capitalize and exploit this short term weakness to the benefit of its investment partners. The acquisition of the highly prospective Mitchell property was but the first step in this business plan. The recent acquisition of the Wilson Independence mine in Nevada has catapulted OPG from a exploration company to a near term producer. Management continues to review properties with a focus on Gold, Copper and Silver in appropriate jurisdictions with the most upside potential for shareholders.
Open Gold Corp., has entered into a binding letter of intent with General Metals Corporation to acquire a 100% interest in mining claims and surface lands located in the Battle Mountain District, Lander County, State of Nevada, collectively known as the Independence Mine.
The Independence mine is predominately a silver mine that produced intermittently from 1938 through 1987. Reported historic production by the various operators totaled 750,200 ounces silver and 11,029 ounces gold. The average recovered grade of all recorded production was 0.17 and 11.53 ounces of gold and silver per ton respectively.
In May of 2012, Open Gold entered into an agreement with Foundation Resources Inc. for an option to acquire 100% of the Mitchell Massive Sulfide Project (2,256 ha) located approximately 10 kilometres southwest of the former South Bay Mine (1.6 Mt mined @2.5% copper, 14% zinc and 120 g/t per ton silver) by issuing a total of 1.3 million Open Gold shares, making total cash payments of $203,000 and incurring $1 million in exploration expenditures within 37 months of the Agreement. The infrastructure at the property is excellent, being situated approximately 80 kilometres east of the Town of Red Lake, Ontario with access via the South Bay Road that extends east off of Highway 105 and runs along an electrical grid.
The Mitchell Property occurs within the southern Birch-Uchi Greenstone Belt in the Uchi Subprovince of the Superior Province of the Canadian Shield and contains felsic-intermediate metavolcanic units similar to those found at the South Bay Mine. A recent HELI-TEM (time-domain electromagnetic system) survey flown in September 2011 by Foundation detected two prominent ‘bulls-eye’ electromagnetic anomalies ‘A’ and ‘B’ of potential base metal-sulphide (copper-zinc-silver) bodies located, respectively, in the western and eastern parts of the property. Anomaly ‘A’ is subcircular in shape, which measures about 1.0 kilometre in both north-south and east-west directions. Anomaly ‘B’, which trends north-south, is over 1.6 kilometres long and 200 to 400 metres wide. These two anomalies are located approximately 3.0 kilometres apart from each other.