BASE METALS SPECIAL — Alta Gold to develop Copper Flat porphyry

With a porphyry deposit in New Mexico, Alta Gold (ALTA-Q) is branching out from gold mining into base metals.

The Copper Flat deposit contains copper-molybdenum mineralization, with significant values of gold and silver. The company acquired the property in 1994 and will pay the previous owner a royalty on production of up to US$4 million.

Situated in the Hillsboro mining district, Copper Flat started up in 1982, only to be shut down as a result of low metal prices.

Alta is preparing to return the project to production. A feasibility study indicates the deposit contains some 59 million tons of reserves grading 0.43% copper, 0.013% moly, 0.004 oz. of gold and 0.061 oz. of silver per ton. The company hopes to recover 91% of the copper, 71% of the moly, 50% of the gold and 90% of the silver.

The open-pit operation has an estimated mine life of about 12 years. The ore would be processed using the flotation method. The stripping ratio is low, at 0.83-to-1. Cash production costs are projected at US62 cents per lb. of copper.

An environmental impact statement has been completed on Copper Flat, though final approval has been delayed until November by the Bureau of Land Management.

Much of the infrastructure is already in place, including the tailings pond, power lines, building foundations and access road. Alta has budgeted US$5 million for construction in anticipation of approval.

Alta has two new targets — the Copper Ledge and Copper Ridge — at the property. The Copper Ledge target has five drill holes in it, which intercepted significant intervals of copper mineralization grading about 0.3% copper, with more holes planned for 1996. The Copper Ridge target, situated 1,000 ft. southeast of the mine, also has five widely spaced drill holes, which hit mineralization of about 0.25% copper. More drill holes are planned for 1996. These two target areas have the potential to increase reserves for the property.