Northern Dynasty ups output at Nevada mine

The transition from open pit to underground mining will boost production at Northern Dynasty Explorations’ 42%- owned Little Bald Mountain gold mine in Nevada, President J. Glenn Simpson reports.

With the first underground phase completed, some 3,500 oz gold had been recovered by the end of October. Production is expected to be around 4,000 oz by year-end and development of two mining levels for 1988 is expected to increase production to 9,000 oz in that year.

“Net cash flow to Dynasty in 1988 is projected at $l.4 million at $450(US) an oz,” Simpson claims. These levels will be maintained at least through 1990.

The company began its heap leaching operation in June, 1985, and after two years of open pit made the change to underground mining earlier this year. Reserves stand at 220,000 tons grading 0.14 oz gold per ton. A 10,000-ft drill program carried out this year has outlined an additional open pit orebody immediately south of the main pit with potential for another 5,000 oz gold. Drill work is continuing on this and other targets outside the main zone.

At the Zeke prospect (41% owned) in Eureka Cty., Nev., a 5,000-ft drill program is under way to define and confirm the estimated two million tons of 0.056-oz gold and 0.224 oz silver. Recent results include hole 87-37 which intercepted 130 ft averaging 0.043 oz gold, while hole 87-40 intercepted 290 ft grading 0.49 oz gold. Cominco Resources International recently announced high grade intercepts up to 1.1 oz gold over 55 ft from 350 to 405 ft in alteration zones at the Buckhorn mine which shares a common boundary and structural continuity with the Zeke property. Continued drilling at Zeke will be targeted to extend previous high grade intercepts of which the best to date was hole 84-12 in which 50 ft averaged 0.35 oz gold and 0.56 oz silver.

Work is continuing on several other gold prospects, including the Indian Ranch (100% owned) prospect in Nevada, where a geochemical survey and four preliminary drill holes will be followed by further drilling.

In Canada, an 8,000-ft drill program on the Arseno Lake gold- silver prospect (30% owned) in the Pickle Lake district is nearing completion and at the Virginiatown prospect in the Larder Lake-Kirkland Lake belt, a 5000-ft drill program is scheduled for this month.