Reserves at the Imperial County project in southeastern California received a significant boost upon completion of a preliminary feasibility study on the Indian Rose and Ocotillo deposits.
The project is owned 65% by Glamis Gold (TSE) and 35% by Arizona Star Resources (TSE).
Proven and probable reserves, based on a cutoff grade of 0.012 oz. gold per ton, total 33.3 million tons grading 0.023 oz. gold. Previous reports put minable reserves in the Indian Rose at 5.1 million tons grading 0.023 oz. gold plus a further preliminary reserve in the Ocotillo of about 7.5 million tons grading 0.028 oz. gold.
Total reserves on the two deposits, including all categories, are estimated at 44.2 million tons grading 0.024 oz. gold at a cutoff grade of 0.012 oz. James Billingsley, vice-president of Glamis, said although the drilling outlined a sizable amount of material, it is not viewed as economic at today’s gold price.
Billingsley added that Glamis is mining ore of a comparable grade at its other operations, but the strip ratio of the Imperial County reserves is considerably higher at about 3-to-1 compared with strip ratios in the order of 1-to-1 at the company’s Yellow Aster mine.
The companies plan to conduct additional exploration this fall in an attempt to either boost the grade and/or lower the strip ratio.
With current reserve estimates, Billingsley said, the price of gold would have to move over US$400 per oz. for the project to become economic.
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