Bureau gives go-ahead for Solidus to build its Spring Valley gold mine
Precious metals royalty and streaming company Sailfish Royalty announces that on July 15, the US Bureau of Land Management approved Solidus Resources’ Spring Valley gold mine project, in Pershing County, Nevada.
Sailfish has an up to 3% net smelter return royalty on Spring Valley.
Solidus, the operator, is approved to build, operate and maintain an openpit gold mine, three waste rock facilities and a heap leach facility.
Spring Valley will employ a contractor workforce of about 130 employees during the initial two-year construction and about 250 full-time employees for the operations period.
The total life of the project is 21 years, including two years of construction, 11 years of mining, three additional years of ore processing and five years of reclamation and closure activities.
“The record of decision providing final approval for construction and eventual operations at Spring Valley is a major milestone for Sailfish as the expected cash flow from this asset should be a material step change from our current base of operations.
“This approval grants the operator the ability to start construction on Spring Valley immediately with a view to generating the first gold production within the next two to three years,” Sailfish CEO Paolo Lostritto says.
“We continue to believe that Spring Valley will need to be optimised for the current gold price environment, which is substantially more than the $1 800/oz gold used in the 2025 feasibility study. A project optimisation should result in more gold being produced over the life-of-mine.
“The plan of operations approved in this final permit provides about 33% more throughput than what was highlighted in the 2025 feasibility study.
“In addition, it is important to highlight that several benchmark transactions have occurred in the royalty space over the past three months that occurred at substantial premiums to their underlying net asset value,” he adds.
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