- Kingman Minerals announced its entrance into option agreement for area spanning 1,071.2 acres in Arizona’s Mohave County
- Recent agreement will increase company’s total exploitable mining assets in Mohave County to 72 lode claims across nearly 1,500 acres
- Company well positioned to capitalize on ongoing surge within precious metals space, with gold prices at their highest level since 2011
- Kingman Minerals commissioned mining consultant to carry out underground sampling program within its mine ahead of company’s NI43-101 report publication
Kingman Minerals (TSX.V: KGS), a Canadian-based mining company engaged in the acquisition, exploration and development of gold and silver properties in North America, announced that it had recently entered into an option agreement to acquire 100% interest in 52 lode claims covering an area of 1,071.2 acres, located in the Mohave County, Arizona. This agreement represents a significant expansion of company’s gold and silver assets in the historic mining location.
The option agreement, which will be valid for a period of four years, was obtained in exchange for a consideration of $150 thousand in cash, the issuance of 2.5 million new common shares and a commitment by the company to invest at least $1 million in exploration expenditure over the option tenure (http://nnw.fm/ny2Mf). The company has now embarked on the process of preparing a NI43-101 compliant technical report on the newly acquired assets, which will be presented to the TSX Venture Exchange once completed.
Kingman Minerals, which specializes in sourcing and developing existing, non-grass roots properties in locations favorable to mining, had previously announced in late 2019 that it had entered into an option agreement to explore and mine 20 lode claims within the Music Mountains in Mohave County, Arizona (http://nnw.fm/c6CJd). The initial agreement, which included the historic 167-hectare Rosebud Mine, coupled with the newly announced option interest will take Kingman’s total exploitable mining assets in the Mohave area to 72 lode claims, spanning an area of nearly 1,500 acres. The agreements have also served to highlight the ongoing popularity of non-greenfield projects, with over 54% of the gold exploration budget from the world’s top 20 gold producers now being devoted towards reactivating existing or abandoned sites with new mining techniques (http://nnw.fm/zOTr3).
The Mohave County has a longstanding reputation for its abundant mineral resources, with gold first being discovered in the area as far back as 1879. Within twenty years, twelve mines were operating in the region—ten of which were located within two miles of Kingman Mineral’s current site. The Rosebud mine in particular was discovered in the 1880’s and mined primarily in the late 1920s and 30s, with approximately 3,000 tons of ore being removed over that interim (http://nnw.fm/KkS5D).
In 1985, a sample study was carried out at the then shuttered Rosebud Mine by Stellar Resource Corp, which sought to derive estimates as to the potential mineral content of the mine. While the estimates and assay values could not be verified or relied upon and were not NI 43-101-compliant (http://nnw.fm/xS4Ls), the Stellar Resources’ reports suggested that the mine’s potential assets could amount to as much as 664,000 ounces of gold and 2,600,000 ounces of silver (http://nnw.fm/U980j). A subsequent exploratory study was carried out within the mine by Kinntaki Resources in 1995. The company collected 135 surface samples across a series of sites throughout the mine, with their NI 43-101 report revealing that a number of the samples had boasted an elevated presence of gold and silver (http://nnw.fm/JY6Wl). These reports forecast favorable conditions for Kingman Minerals’ exploration expansion in the historic mining location.
Gold prices have enjoyed a stellar run as of late, rising to over $1,740 per ounce thus far in 2020 on the back of ongoing economic uncertainty resulting from the Covid-19 pandemic, inflationary concerns originating from mass central bank-led stimulus programs and US dollar weakness.
“With the Bank of America Corp. recently raising its 18-month gold-price target to $3,000 an ounce, Kingman could not be better positioned to capitalize upon the extremely favorable gold environment,” said Sandy MacDougall, chairman and director of Kingman Minerals. Elaborating further on the recent price move, he added, “This area [Mohave County] indicates great potential, not only due to the high-grade gold past producers but the surrounding area as a whole. Kingman intends to verify the extensive historical data that exists, bring the resource estimates to NI 43-101 compliant standards and revitalize this area completely” (http://nnw.fm/Vt4U7).
Kingman Minerals has also recently revealed that it has embarked upon the process of preparing a NI43-101-compliant technical report on its Mohave County assets—a preliminary step required prior to commencing mining operations. Earlier this year, the company commissioned Burgex Inc. (http://nnw.fm/IiC7x), a mining consulting services company specializing in the analysis of abandoned mine sites throughout the western United States, to determine the accessibility of the Rosebud Mine as well as to carry out two separate underground sampling programs (http://nnw.fm/EE09f). Burgex has recently completed the sampling process, with the results from both of the programs to be included in Kingman’s forthcoming NI43-101 publication.
For more information, visit the company’s website at www.KingmanMinerals.com.
NOTE TO INVESTORS: The latest news and updates relating to KGS are available in the company’s newsroom at http://nnw.fm/KGS
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