Description and Location of the Bruner Property
Patriot owns a 2% net smelter royalty in the Bruner gold project, one of the most significant recent gold discoveries in Nevada. The Bruner gold project is located approximately 130 miles east-southeast of Reno, Nevada, and is comprised of 230 unpatented and 27 patented mining claims covering a total of approximately 3,520 acres. The project is 15 miles south of the Paradise Peak Mine, 45 miles southeast of the Round Mountain Mine, and 25 miles west of the Rawhide Mine, which together have produced over 15 million ounces of gold over a thirty year period. Historic production at the Bruner gold project includes approximately 100,000 ounces at an average grade of 0.56 ounces per ton (19.2 grams per tonne).
Patriot initially acquired a 100% interest in the Bruner gold project and subsequently expanded the project, carrying out exploration and drilling and building on the historic work carried out by groups such as Morrison-Knudsen, Miramar, Glamis, Newmont, Kennecott and others. A low-grade resource was identified near the center of the property. Patriot then optioned the project to Canamex Resources in 2010, whose exploration and drilling efforts dramatically increased the known resource. Canamex also conducted a preliminary economic assessment. The indicated mineral resource (based on design pits for $1350/oz AU price) is estimated at 14,050,000 tonnes at an internal cutoff grade of 0.117 gpt Au Eq, and an average grade of 0.58 gpt Au containing 260,000 gold ounces. The inferred mineral resource is estimated at 2,950,000 tonnes at an internal cutoff grade of 0.117 gpt Au Eq, and an average grade of 0.66 gpt Au containing 63,000 gold ounces. At the PEA base case of $1,250/oz Au the Project has strong economics with a pre-tax payback of nominally 1.25 years, pre-tax IRR of 42.1%, and an after-tax IRR of 39%. Canamex completed their earn-in requirements in 2016 to own 70% of the project. Subsequently, Patriot negotiated an agreement with Canamex Resources giving them full ownership of the Bruner gold project in exchange for a 2% net smelter royalty and cash consideration.
Located Within The Walker Lane
A northwest trending belt with several producing