North Bay Resources Inc. (OTC:NBRI) announced that it has entered into an agreement to acquire a 100% interest in the Mt Vernon Mine located in Sierra County, California.
The mine is permitted and features modern infrastructure, including a portal, tunnel, ventilation system, power, and equipment.
The Mt Vernon property spans 120 acres and includes six 20-acre claims. It features two types of gold mineralization: paleo-placer deposits and auriferous quartz veins.
North Bay said in a statement that it plans to start test mining immediately, aiming for an initial production rate of 100 tons per day once minor infrastructure and permitting updates are completed.
The ore will be transported to the company’s gold mill in Bishop, California, for processing. Initial production is expected to consist of three truckloads per day, each carrying 30 tons of ore, with an average target grade of one ounce of gold per ton.
The ore body, estimated at 954,000 tons, is based on prior exploration and current underground access.
Mt Vernon is located near the Ruby Mine, known for producing some of the world's finest gold nuggets.
The acquisition agreement includes a series of payments: $25,000 upon signing for due diligence, $25,000 for MET analyses within 45 days, a $500,000 down payment within 90 days, followed by annual payments of $1 million for five years, culminating in a final payment of $4.45 million after five years.
Upon completing the option, the property will be subject to a 2% Net Smelter Return (NSR). North Bay will have the right to acquire 100% of the NSR for $10 million, payable in whole or part on a pro-rata basis, at any time within 20 years from the agreement date.