After reviewing results from the 1992 drill program, Crown Butte Resources (TSE) re-calculated geological reserves for its New World project in Montana.
The advanced project is in an alpine region near Yellowstone Park, and is owned 100% by Crown Butte, which is turn is owned 60% by Hemlo Gold Mines (TSE).
The Miller Creek and Home-stake deposits together host 7.9 million tons grading 0.25 oz. gold (0.2 oz. cut) and 1.04 oz. silver per ton, plus 0.74% copper. This compares with a total of 8.8 million tons grading 0.26 oz. gold (0.21 oz. cut), 1.01 oz. silver and 0.75% copper at the end of 1991. These reserves do not include the Como, McLaren and Fisher Mountain deposits which were dropped from the permit area based on a decision not to use cyanide in the treatment process.
The recalculated reserve based on last year’s drilling reflects a 13% reduction in contained ounces of gold from the previous year, of which nearly 12% was in the Homestake deposit.
Crown Butte said last year’s underground program provided information which changes the interpretation of the relationships between the Homestake Central and South zones, “and this accounts for most of the difference.” The company stressed that the project continues to be viable, and activities this year will be focused on the permitting process.
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