Preliminary resource figures were updated by Sierra Mining & Engineering. The global estimate for the entire property weighs in at 418 million tons grading 0.012 oz. gold and 0.052 oz. silver per ton, which translates into a contained resource of 5 million oz. gold and 21.7 million oz. silver.
The measured and indicated resource stands at 32.2 million tons grading 0.048 oz. gold and 0.24 oz. silver (containing 1.5 million oz. gold and 7.8 million oz. silver). A database of more than 3,000 drill holes was used to calculate the resource.
Situated in the Slumbering Hills area of Humboldt Cty., the property is accesible by paved road from the town of Winnemucca, about 30 km to the southeast. Sleeper lies within a 22,000-acre land package that comprises 1,100 claims on the northern extension of the Battle Mountain trend.
X-Cal has a 100% interest in 391 of the 1,100 claims (7,820 acres) and shares title to the mine site and other claims on a 50-50 basis with
X-Cal has purchased an option on the remaining Kinross interest in the project for a combination of 2 million shares of X-Cal, US$1.3 million in cash and the assumption of reclamation liabilities at the mine site.
To date, X-Cal has spent roughly $10 million on the Sleeper project. Recently, the company commissioned Kappes, Cassidy & Associates to perform a feasibility study, which will include plant design, metallurgy and reclamation planning.
“Our intent is to add significantly to the base study that Kappes, Cassidy & Associates are performing,” says X-Cal President Shawn Kennedy.
Begining in 1982, the property was subjected to reconnaissance work by Amax Gold (which has since merged with Kinross). Drilling eventually delineated a mineable reserve of 1.4 million tons grading 0.32 oz. gold and 0.9 oz. silver per ton. Mining commenced in 1986 and was halted 10 years later, following production of 1.7 million oz. gold and 2.3 million oz. silver. X-Cal says the mining operation did not fully exploit the mineralized system.
The deposit was formed by a series of epithermal events at the intersection of a range-front fault and a normal fault. Four types of gold mineralization were discovered in a brittle rhyolite: high-grade veins; medium-grade breccia; low-grade stockworks and alluvial gravels.
X-Cal has delineated several targets with economic potential at today’s gold prices. These include the West Wood, Northeast and Bedrock Casino areas.
At West Wood, previous drilling had delineated a measured and indicated resource of 1 million tons averaging 0.348 oz. gold per ton (348,215 oz. gold). All reported resource estimates were calculated using a cutoff grade of 0.1 oz. per tonne.
“We intend to focus at West Wood and believe that 30 drill holes will bring the resource up to 500,000 oz.,” says Kennedy.
At the Northeast target, the measured and indicated resource weighs in at 249,310 tons grading 0.029 oz. gold per ton (71,558 contained ounces). Structural analysis has targeted the extension of a shear zone for followup drilling. A previously drilled hole intersected 4 oz. gold per ton over 60 ft. The high-grade structure lies 185 ft. below the surface.
At Bedrock Casino, the measured and indicated resource is set at 71,155 tons averaging 1.39 oz. gold per ton, (96,557 contained ounces). This target is still in the early stages of being explored.
In related news, X-Cal has arranged a private placement of 1.6 million units priced at 30 cents each, designed to raise proceeds of $500,000. “More serious financing is under discussion,” says Kennedy, adding that the money will be used to advance the Sleeper project.
X-Cal has no debt and about 39 million shares fully diluted.
Be the first to comment on "NEVADA & THE WESTERN STATES — X-Cal issues wake-up call to Sleeper"