Peke Resources, Inc. v. Fifth Judicial District Court of State of Nevada

*1063OPINION

By the Court,

Shearing, C. J.:

This case involves a placer gold mine in Tule Canyon, Esmeralda County, Nevada. In 1977, Oro Corporation (“Oro”), a Nevada corporation and then-owner of the mine, entered into a *1064mining lease with lessee Robert Scarth. Oro leased its mining, mineral, water, and land (millsite) rights. In exchange, Oro received $600 and retained a “production royalty” of seven percent in all minerals extracted from the mine. The lease also contained provisions by which both lessor and lessee could terminate the agreement.

Between 1983 and 1993, the lease was subsequently…