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Overview
New Dimension acquired, through lease/option agreements and staking, a large land position within the northern portion of the Reese River Mining District (also known as the Austin District) in central Nevada. The land package includes the New York Canyon and Amador Canyon areas that have seen considerable historical silver production during the 1880's.
New York Canyon was the site of major underground mining of high-grade silver that is estimated at upwards of five million ounces. Silver grades from the mines here varied considerably with historic production records indicating some ore chutes containing over 1,000 ounces of silver per ton. Average mining grades, however, were generally between 100 and 200 ounces per ton silver. In the 1980's large waste dumps from New York Canyon were processed at a local mill with the grades reported to average eight ounces silver per ton. The Company has not verified this information.
The Company can acquire its interest in the 23 optioned New York Canyon patented claims by a lease agreement with annual payments and a 3% Net Smelter Royalty. The NSR can be reduced to 1% by paying the lessor US $3 million. The Company can also earn a 100% interest in a block of 24 unpatented claims that cover much of the Amador Canyon Zone of mineralization. This agreement allows the Company to earn its interest by making the annual payments and issuing shares of the Company over five years. The vendor retains a 3% NSR, with the Company having the right to purchase two of the three percentage points for US $2 million. In addition to the above two agreements, the Company has staked 52 claims to tie the New York Canyon and Amador Canyon claim blocks together and cover additional areas of exploration potential. All of the Company's ground is contiguous.
In 2009, New Dimension signed an agreement with International Minerals Corp., an emerging gold and silver producer, to form a joint venture on the Reese River Project. The Agreement allows International Minerals, over a four year period, to earn an initial 60% interest in the Property by undertaking US$1.0 million in exploration expenditures and maintaining the underlying property obligations. International Minerals will have the option to acquire an additional 10% interest (for a total interest of 70%) by funding and completing a Feasibility Study within eight years. New Dimension has collected US$10,000 and will collect a further US$100,000 in cash or equivalent value in International Mineral shares (at the election of International Minerals) upon International Minerals earning a 60% interest in the Property. Once International Minerals has earned its interest (either 60% or 70%), either party can be diluted to a 1% net smelter return ("NSR") royalty for non-participation in approved expenditures on the Property.
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