Bulk tonnage leach pads are planned this year by Calgary-based Naneco Resources at two of its projects: the Longstreet gold/silver prospect in Nevada and the Johnson Gulch gold prospect in South Dakota. The company hopes to be able to commence mining operations at the two properties by the end of the year.
Naneco, which has increased its interest in Longstreet to 75.4%, is continuing its drilling program at the property this year in order to completely define the tonnage and grade. The company hopes to boost reserves to 8-10 million tons of gold/silver ore.
The Longstreet heap leach pad will be built immediately to the east of the Main zone open pit. Gold grades to date on the property are in the 0.03-0.04-oz-per-ton range; silver grades have been in the 0.35-0.65-oz range.
At the Johnson Gulch prospect, in which Naneco has acquired a 100% interest, a program of an additional 300 percussion drill holes and a new program of 10 deep drill holes has been scheduled for this year. The company is hoping to bump up gold reserves there to 6-8 million tons.
Naneco’s existing in-place mineral inventory from both properties is estimated to be a combined 400,000 oz gold and 3.25 million oz silver. Continued drilling is expected to increase the company’s mineral inventories.
The company continues to explore the Reed Bay project in Saskatchewan and the Kelly’s-Cody and Southern Cross prospects in Nevada.
Naneco completed a private placement of 600,000 treasury shares at $3.60 per share and 300,000 warrants at $4.60 each in March. The company reports a working capital in excess of $3 million.
The company recorded a net loss of $32,556 for fiscal year 1986 (ending Nov 30) and a deficit of almost $1.3 million at the end of the fiscal year.
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