When a major starts turning a drill on your ground, the junior doesn't pay for it — that's the whole point of an option deal. On October 1, West Point Gold Corp. announced that Kinross Gold U.S.A. has commenced drilling at West Point's Jefferson Canyon project in Nye County, Nevada — roughly 7 kilometres from Kinross's Round Mountain operations. Drilling began September 23, following receipt of drill permits on August 19 and completion of bonding.
- Kinross started drilling on September 23, 2026, at Jefferson Canyon, with permits received August 19 triggering the four-year option period under the 2022 Exploration and Option Agreement.
- The agreement provides for up to US$10 million in future option payments: Kinross can earn 70% for US$5 million, then another 10% for a further US$5 million.
- Kinross must also spend US$600,000 on exploration, make US$75,000 annual lease payments, and keep the unpatented claims in good standing.
- West Point retains a 20% project interest if both options are exercised, with royalty protection: any interest diluted below 10% converts to a 1% net smelter return royalty.
- Historical drilling at Jefferson Canyon — 145 holes — includes a standout intercept of 41.2 metres at 6.4 g/t gold and 402 g/t silver (hole GJ-81).
A word on the historical numbers
The eye-catching intercepts are historical, and West Point's qualified person, Robert Johansing, has not completed sufficient work to verify them — the release states this plainly. No mineral resource estimate exists for Jefferson Canyon. What is new and verifiable: a permitted, partner-funded drill program on a large volcanic-hosted epithermal gold-silver system that the company describes as essentially the same age as the nearby Round Mountain deposit — a world-class low-sulfidation epithermal system.
Why the location matters
*"Given the project's proximity to Kinross's Round Mountain mine and our partnership on the Jefferson Canyon project with Kinross, we believe the hurdle rate to define a mineable deposit is relatively low,"* said West Point President and CEO Derek Macpherson. The logic is straightforward: a deposit sitting 7 kilometres from an operating major's infrastructure doesn't need to clear the same bar as a greenfield project in the middle of nowhere.
What West Point keeps
This is partner-funded exploration in its purest form — Kinross pays, West Point keeps exposure. That lets West Point stay focused on its flagship Gold Chain Project in Arizona while a major tests Jefferson Canyon on its own dime. West Point shares advanced about 6.7% to $1.28 on the news, per Resource World Magazine. Assays from the new drilling will be the next thing to watch.