This article is a sponsored feature from Mining.com.au partner Surface Metals Inc. It is not financial advice.
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A strategic decision to expand into gold in Nevada has culminated in a new image and fresh exploration strategy aimed at securing one junior explorer’s future.
The company originally founded as ACME Lithium earlier this year broke into one of North America’s epicentres for gold with the acquisition of the Cimarron Gold Project in Nevada.
This diversification resulted in the company rebranding to Surface Metals (CSE:SUR, OTCQB:SURMF).
Now the junior explorer was already active in Nevada – focused on lithium, which it is retaining exposure to as it positions itself to take advantage of the anticipated future tightness in supply of the battery metal and associated price upside.
But with gold notching new record highs almost every other day, a promising project can make a very attractive proposition for smaller explorers focused on future proofing their portfolios.
Surface Metals was keen to remain in Nevada. So when an opportunity to acquire a prospective gold project in the prolific Walker Lane Trend passed across its desk, it was an opportunity it chose to pursue.
The project’s location not far from the company’s existing lithium projects and resource was one of the key factors.
CEO Steve Hanson, who founded ACME Lithium, tells Mining.com.au his number one priority is creating value for shareholders.
“We are heavily invested in Nevada, one of the best mining jurisdictions in the world,” he says.
“We had an opportunity to acquire a 90% interest in a very exciting gold project called Cimarron, not far from our operations in Nevada.”
Nevada continues to rank in the top 10 most attractive jurisdictions for mining investment in the Fraser Institute’s Annual Survey of Mining Companies, taking out second spot in 2024.
Walker Lane Trend home to major gold mines
The Walker Lane Trend, which extends along the California-Nevada border, hosts several major gold operations. A mining rush in the area was spurred on by the discovery of the Comstock Lode – a rich source of silver and gold – in the late 1850s.
Just north of Surface Metals’ newly acquired Cimarron Project, Kinross Gold (NYSE:KGC) has poured over 15 million ounces at its Round Mountain operation.
Anglo American (LSE:AAL), meanwhile, is in the final stages of permitting for its Bullfrog Mine, which is expected to produce over 100,000 ounces annually.
At the same time, market watchers continue to revise their gold price forecasts upwards as global economic uncertainty drives increased demand for the safehaven metal.
Goldman Sachs sees gold reaching US$4,900 ($7,462) an ounce by December 2026, while JP Morgan tips it will hit US$4,250 over the same period.
2025 is shaping up to be the strongest year for gold returns since 1979, according to State Street Investment Management.
“With gold at an all-time high in price, and a number of other economic factors we see investing in gold as one of the best times in history,” Hanson says.
Cimarron, which is a high-grade epithermal deposit, is located in the southwestern region of Nevada in the historic San Antonio mining district – a region with a long history of mining dating back nearly 200 years.
The project comprises 31 unpatented lode mining claims and has a database of 190 historical drill holes, as well as non-compliant historical resources of over 50,000 ounces.
Hanson says the visible mineral continuity and open-ended mineralisation, and limited work done in the past 15 years, provides Surface Metals with an incredible opportunity.
Historical mine workings dating back to the early 20th century still exist on site and the project is located just off the highway about a 45-minute drive from the mining town of Tonopah, Nevada.
Prior drill intercepts include 11m @ 4.46 grams per tonne gold, 23m @ 4.49g/t and 46m @ 3.94g/t.
Sampling of the surface outcrops and underground adits by previous explorers returned gold assays as high as 107g/t.
Infrastructure and expertise boost Nevada exploration efforts
Cimarron is also located near infrastructure, as well as a vast pool of technical expertise and services.
“Regionally this is one of the epicentres of gold exploration, development and production,” Hanson says.
At Cimarron, exploration was undertaken by both major and junior companies from 1980 through 2021, including Newmont (NYSE:NEM) and Echo Bay Mines – now part of Kinross Gold, which uncovered gold mineralisation throughout the area.
Surface Metals also sees considerable resource upside that can be defined through future drilling and step-outs.
“Mineralisation remains open in several directions and surface sampling has returned anomalous gold values across a wide area, indicating strong potential for both lateral and vertical extensions,” Hanson explains.
“The mineralised system features strong structural controls and is interpreted to be part of a shallow, epithermal system.”
Following a review of the historical database over the past couple of months, Surface Metals is now finalising its 2025-26 exploration strategy.
This could include validation drilling, structural mapping and geophysical reinterpretation to convert the resource to a NI 43-101-compliant resource.
This would be followed by additional drilling to make new discoveries and expand the mineralisation.
“Of course, our long-term goal is to turn this into a million plus ounce gold deposit,” Hanson says.
“If we are able to make new discoveries and expand the resource, we could be a potential acquisition candidate for a larger miner.”
Lithium a key part of the dual-pronged strategy
Surface Metals continues to advance its lithium projects through its US and Canadian subsidiaries.
The company’s Clayton Valley Nevada lithium brine project hosts an inferred lithium carbonate equivalent resource of about 302,900 tonnes.
The project, which spans 2,230 acres, is located adjacent to the only current lithium production in the US by global lithium giant Albemarle (NYSE:ALB)
Surface Metals’ drill-ready 4,139-acre Fish Lake Valley sedimentary clay project sits to the west of Clayton Valley.
The company also has a joint venture with NASDAQ-listed Snow Lake Energy (NASDAQ:LITM) in 37 mineral claims covering around 17,000 acres in the pegmatite fields of the Bird River Greenstone Belt in southeastern Manitoba, Canada, where Snow Lake can earn into 90% of Surface Metals’ Manitoba project.
The ground is located near Tantalum Mining Corp of Canada’s Tanco lithium, caesium and tantalum (LCT) mine, which has been in operation off and on for over five decades.