en.Wedoany.com Reported - Central Nevada Gold is advancing the reopening of the previously producing Mule Canyon gold mine, an asset located in the western U.S. state of Nevada, acquired from Newmont (NYSE, ASX: NEM; TSX: NGT).

According to a statement released Thursday, Central Nevada Gold is focused on advancing the Mule Canyon project through a pre-feasibility study and permitting, with the goal of supporting a construction decision. The company expects to release a new resource estimate for the mine in the coming months. An initial public offering is also being planned.

Mule Canyon was discovered by Gold Fields (JSE, NYSE: GFI) in 1986 and brought into production by Newmont in 1996, producing approximately 500,000 ounces of gold over five years. Mining operations ceased in 2000 due to low gold prices, with only two of six mineralized zones having been mined, leaving significant untapped potential.

CEO Simon Griffiths stated in the release that the company acquired a high-quality brownfield project with extensive historical drilling, production data, and baseline environmental studies, which will allow it to efficiently advance through development and permitting stages. Griffiths noted that the project's potential has garnered strong support from early investors, adding that Nevada is a jurisdiction where mining projects can be permitted and built.

Nevada remains one of the world's leading gold-producing regions. Brownfield projects with existing infrastructure are regaining attention as producers seek gold resources that can be developed faster than new discoveries. Mule Canyon's new owner is betting that the mine's operating history and existing permits will shorten the development timeline.

Central Nevada Gold was formed to acquire development-stage gold and silver projects in the state, led by Griffiths and Executive Director Fraser Buchan. Both have held senior management roles at Andean Precious Metals (TSX: APM), OceanaGold (TSX, NYSE: OCG), Newcrest, and Newcastle Gold. Griffiths previously served as CEO of Andean Precious Metals. Throughout their careers, the two executives have developed and operated multiple precious metals mines.

According to a presentation on the company's website, Central Nevada Gold aims to make a production decision on Mule Canyon by 2027.

Central Nevada Gold stated that mine planning and economic studies for Mule Canyon are underway, and progress has been made on the project's key permitting pathway. The mine has an active operating plan, water rights, and on-site grid power. While working to restart Mule Canyon, the company said it is also evaluating a potential listing on a North American stock exchange.

Mule Canyon is located approximately 700 kilometers northwest of Las Vegas, within the historic Argenta mining district in the Shoshone Mountain Range, near the prolific Carlin, Battle Mountain, and Getchell trends.

Central Nevada Gold reported that one discovery drill hole intercepted 41.1 meters grading 24.8 grams of gold per tonne (depth not disclosed). The company's database contains 2,149 drill holes totaling over 335,000 meters. Historical operating data cited by the company shows an average mill feed grade of 3.8 grams of gold per tonne with metallurgical recovery of approximately 94%.

According to information on the website of shareholder Giant Venture Capital, subsequent exploration delineated six mineralized zones spanning over 2.5 kilometers, identifying 8.2 million tonnes of open-pittable ore averaging 3.81 grams of gold per tonne. Based on data from the Nevada Division of Environmental Protection, Mule Canyon was originally designed and permitted to process approximately 7 million to 10 million tonnes of gold-bearing ore, with 4.1 million tonnes of low-grade oxide ore treated via cyanide heap leaching.