Sierra Nevada Gold (ASX:SNX) has reached a pivotal milestone in the development of its New Pass Project in Nevada, announcing the commencement of underground refurbishment alongside exceptional metallurgical results.
The company has begun site preparation and portal rehabilitation at the Superior Level 4 Adit, a critical move designed to facilitate an upcoming 500-metre underground drilling programme.
The drilling is intended to refine the geological model of the high-grade Superior Vein, providing the structural clarity necessary to transition into trial mining.
The project’s economic outlook has been significantly bolstered by recent metallurgical test work, which achieved total gold extraction rates of up to 97%.
The results were obtained using a conventional flowsheet combining gravity separation and cyanide leaching.
The performance of the Knelson gravity circuit confirmed a substantial free gold component, suggesting that the ore is highly amenable to standard processing techniques.
By operating on existing patented mining claims, SNX benefits from freehold tenure and a streamlined permitting process, with essential government approvals already secured.
Executive Director Peter Moore noted that these developments materially strengthen the company’s confidence in New Pass as a source of near-term cash flow.
With underground access currently being established from multiple positions along the vein, the company is rapidly clearing a pathway towards production.
The combination of high recovery rates and infrastructure readiness positions the New Pass Mine as a cornerstone asset in Sierra Nevada Gold's North American portfolio.