Expectations run high for Kilometre 88

Hopes are high for companies active in Venezuela, particularly those with ground in the Kilometre 88 region on the eastern border of the country.

Placer Dome (TSE) sparked a rush in the area in late 1992. Since then, Placer has focused on only one of seven mineralized anomalies. It released a resource estimate for the area in September.

The measured and indicated partial geological resource is estimated at 123.9 million tonnes grading 1.32 grams gold per tonne, based on a 0.7-gram-gold cutoff.

The drilling tested a strike length of about 2 km down to a vertical depth of about 200 metres and the deposit remains open on strike and to depth. Up to the end of 1993, Placer had spent about US$10 million. It plans to initiate a prefeasibility study in 1994. A revised resource estimate will likely be released early in the new year.

Among the juniors, Crystallex International (VSE) and Eurus Resource (VSE), partners on the Albino concession on the southeastern corner of Placers Las Cristinas project, are among the more advanced projects. The companies have released a preliminary reserve figure and are proceeding with plans to install a 400-tonne-per-day cyanide mill, initial feed for which will come from two open-pit zones and an old tailings pile.

The two open pits contain an estimated 131,900 tonnes grading 13.35 grams gold while the tailings pile holds proven and probable reserves totaling 79,300 tonnes grading 15.2 grams gold. The companies have tested only the top 30 metres of saprolite and are obtaining hard-rock concession rights. Venezuelan Goldfields (TSE) views its Oro Uno claims, situated north and east of Las Cristinas, as one of the key properties in the play. Assuming the company received value for its money, the purchase price certainly lends prominence to the property.

To acquire the ground, Vengold paid US$20.37 million in cash and 3.3 million common shares. It also assumed a US$6.5-million property debt. Drilling is expected to begin shortly.

Vengold is also earning an interest in properties held by Carson Gold (VSE) in the Kilometre 88 camp. Carson recently acquired an option on two additional properties, north of the Cristina and Oro Uno ground. Drilling may begin in March.

Exploration is also in the preliminary stages for Vengolds joint venture with Queenstake Resources (TSE) on the Bizkaitarra concession. The project is south of Oro Uno and east of Las Cristinas.

Southwest of Las Cristinas, partners Canarc Resource (VSE), Consolidated Magna Ventures (VSE) and Tombstone Explorations (VSE) each have varying interests in the Guarimba concession.

Gold Reserve (TSE), which owns the Brisas property adjoining Las Cristinas to the south, has drilled at least 31 holes.

Work is continuing on the Yuruan gold concession at the northern end of the Kilometre 88 region, about 16 km north of Las Cristinas. Rare Earth Resources (VSE) is earning a half interest from Consolidated Madison Holdings (VSE). Chesbar (TSE) and Spirit Lake (ME) also hold Venezuelan ground.