The Austin Trend sits between the Carlin and Battle Mountain trends, Nevada, and while some 40,000 ounces of gold was recovered from the New Pass mine there has been little drilling for decades, so Sierra Nevada completed an initial six RC holes for 3600m and delivered precious metals in the first hole assayed.

 

The results were 1.22m at 26.7 grams per tonne gold and 25.1gpty silver from 186m about 80m down-dip beneath the deepest workings.

 

The hole also logged a previously unknown but lower-grade hanging wall vein, and 1.22m at 7.79gpt in a near-surface expression of the high-grade True Blue gold vein that runs parallel to the Superior Vein, about 120m away.

 

While assays from the other five holes are pending, the company says it has already proven that the Superior and Thomas West veins continue at depth. 

 

Another 10 holes are planned once the weather improves. 

 

It intends to complete underground drilling once the existing New Pass underground is declared safe. 

 

The mine was worked between 1965 and 2012 by local prior to his retirement when it was sold too Sierra Nevada.

 

Sierra Nevada, which listed in May, believes it can define a maiden resource within 18 months.

 

Its work suggests a 6.5km long strike at New Pass that could host a large-scale mineral system, but where the past was limited to 150m. 

 

It has since shifted its drilling focus to the Warrior gold project with 2000m of RC planned.

 

It has also completed a 1197m-deep diamond core hole at its Blackhawk porphyry project. The test of the Badger prospect was designed to 800m but was extended due to the identification of alteration. 

 

It initially tested the Colorback oxide prospect.

 

All assays are expected in the new year. 

 

Having drilled at all of its projects, the company has A$4.4 million cash remaining from its $10 million IPO that was priced at 50c.

 

The shares were up 32% this afternoon at 29c, valuing it at $16 million.