Cathedral Well hosts Carlin-style gold targets at the southern end of the Battle Mountain-Eureka gold trend. The property position is located approximately 55 kilometers southwest of Ely, Nevada, and virtually surrounds the historic Green Springs mining district. EMX entered into an Exploration and Option Agreement (the “Agreement”), through its wholly-owned subsidiary Bronco Creek Exploration, Inc., with Ely Gold and Minerals Inc. (“Ely Gold”) for Cathedral Well (the “Project”) in July 2014. The Cathedral Well property bounds Ely Gold’s Green Springs project area to the east and the west. Pursuant to the Agreement, Ely Gold can earn a 100% interest in the Project by paying EMX a total of US $100,000 as follows: US $25,000 upon execution of the Agreement and US $75,000 over the next three years, after which EMX will retain a 2.5% net smelter return (NSR) royalty, inclusive of an underlying 0.5% NSR royalty. After earning the 100% interest in the Project, Ely Gold will make annual advance royalty payments to EMX based upon project milestones. Ely Gold will be the operator of the program, with technical assistance from EMX through a defined Management Committee arrangement during the option period (see EMX news release dated July 7, 2014 for more information). In 2022 Ely Gold merged and became Gold Royalty Corp (NYSE American: GROY).
USMX produced 1.1 million tonnes at an average grade of 2.1 g/t gold from open pit mining operations in the district from 1988-1990 (Russell, 2005). The historic open pit mines exploited oxide gold mineralization developed in the upper Chainman and along the Joanna-Chainman contact, which are important host units in the region (i.e., Midway Gold’s Gold Rock project and Pilot Gold’s Griffon project). Several northern historic exploration holes, drilled by USMX, revealed mineralization associated with the underlying Pilot Shale, which is another important host unit in the region (i.e., Alligator Ridge and Midway Gold’s Pan deposit). The nearby mines and deposits in the region provide context for EMX’s Cathedral Well Project, which occurs in a similar geologic setting, but this is not necessarily indicative that the Project hosts similar mineralization.
EMX’s geologic mapping and structural reinterpretations at Cathedral Well have highlighted structurally offset portions of known mineralization from the Green Springs district. EMX acquired the property through staking in 2008, and completed 30.5 line kilometers of NSAMT and CSAMT geophysical surveys, soil and stream sediment surveys totaling 1,597 samples, and six reverse circulation drill holes totaling 1,426 meters over the western target area, all funded by a previous partner. Cathedral Well contains numerous outcropping jasperoids and de-calcified zones developed along the Joanna-Chainman sedimentary rock contact, as well as widespread alteration in sedimentary units above and below the Chainman Formation. The Pilot Shale remains largely untested across the property, and lies at relatively shallow levels within the eastern portion of the property.