Accelerated program set on Marigold gold project

The 8 South Zone of the Marigold gold project near Battle Mountain, Nev., will be the subject of an accelerated exploration program this year that will include a completed feasibility study, says David A. Hutton, vice-president exploration and development of Rayrock Yellowknife Resources.

Rayrock is a one-third member of the Cordex VI syndicate. The two other members are Dome Exploration (U.S.) and Lacana Mining.

The Marigold property comprises 35 sq mi of mineral rights held by a joint venture owned 70% by Cordex and 30% by Santa Fe Minerals. Rayrock is operator of the joint venture and each Cordex member has a 23.3% interest.

Last year’s exploration drilling program budgeted at about $800,000(US) in alluvium covered areas was conducted to test favorable geology projected several miles from known low grade gold zones. At that time, three new zones of gold mineralization were discovered, among them the 8 South zone. The two other zones are called 8 North and 5 North zones.

The 8 South zone is the most significant, says Mr Hutton. Its estimated mineral reserves, based on 58 holes, is 5,028,000 tons grading 0.078 oz gold per ton. The other two zones appear smaller, he says.

This year’s program will include fill-in and fringe drilling, metallurgical testing and engineering work to complete a feasibility study by the end of the year. The objective is to start construction in early 1988, he says, adding that from limited metallurgical testing conducted so far, the mineralization appears to have good heap leach characteristics.

On property optioned from Nevada North Mines and Welcome North Mines (US) Inc., within the 35-sq-mi area, there are three other known zones which from preliminary exploration appear to have mineable heap leach material in the range of 0.04 to 0.06 oz.