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    Mule Canyon gold resource: pit shell, cut-off and PFS insights for mine planners

    October 29, 2026|

    Reviewed by Tom Sullivan

    Mule Canyon gold resource: pit shell, cut-off and PFS insights for mine planners

    First reported on MINING.com

    30 Second Briefing

    Central Nevada Gold has defined an initial Mule Canyon resource of 11.9 million indicated tonnes at 1.73 g/t (663,000 oz) and 20.8 million inferred tonnes at 1.52 g/t (1.02 million oz), constrained by SRK pit shells using a US$3,800/oz gold price, 0.5 g/t cut-off and 93% assumed recovery. Grade sensitivity at a 1.3 g/t cut-off retains roughly three-quarters of indicated and two-thirds of inferred ounces, with 6.34 million indicated tonnes at 2.46 g/t and 8.52 million inferred tonnes at 2.48 g/t, guiding pit optimisation and scheduling. A 2028 construction decision will hinge on the ongoing prefeasibility study, infill and expansion drilling to depths beyond historic 152 m holes, and permitting, backed by US$33 million financing including an Orion stream over 1.5% of gold and 4.8% of silver.

    Technical Brief

    • Inferred resources currently hold about 61% of contained gold, driving infill drilling priorities.
    • Historical drilling averaged 152 m depth, with several mineralised zones still open along strike and at depth.
    • Central Nevada Gold is advancing new permits to align restart plans with the separate state water and federal operational frameworks.
    • The Orion stream secures 1.5% of future gold and 4.8% of silver production, with contractual adjustment mechanisms.

    Our Take

    The earlier coverage of Central Nevada Gold’s US$20 million acquisition of Mule Canyon from Newmont in August 2026 frames Orion Mine Finance’s US$25 million equity and stream package as relatively aggressive support for a single-asset Nevada gold play at this stage of de-risking.

    With 61% of contained gold still in the inferred category and a construction decision only targeted for 2028, the SRK Consulting mandate signals that a substantial proportion of the Orion and strategic shareholder funding will likely have to go into deeper and tighter drilling than the historical 152 m average to upgrade resources rather than fast-tracking development.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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