U.S. REPORT Kalahari plans drill program near Homestake

After having acquired and consolidated a substantial land package, Kalahari Resources (VSE) is proposing an aggressive surface exploration program for its Keystone gold project near the famous Homestake gold mine at Lead, S.D.

The nearby Homestake mine has been in production for 114 years and has produced over 36 million oz. gold. Current production is in excess of 300,000 oz. gold per year.

Kalahari has the right to earn a 100% interest in the Keystone project, subject to lease option payments and varying net smelter returns ranging from 0% to 5%.

Robert Akright, Keystone project manager, told brokers during a recent presentation in Vancouver that gold mineralization on the Keystone property is in Precambrian iron-formation in a geologic setting similar to that of the Homestake mine.

The project is about 35 miles southeast of the Homestake mine on the northwest-southwest structural trend of the central Black Hills. The land package is described as about 5.5 miles long and one-quarter to one-half mile wide.

“It’s elephant country,” Akright said. He pointed out that the Keystone property area remained relatively unexplored because Homestake and others had difficulty in consolidating a land package in the region.

A geophysical program has already started on the property, and results to date show that 17 anomalies tie in with old historical pits and trenches. Over the next few weeks, the company expects to have its geologists locate and sample all of the anomaly sites.

Pending financing, Kalahari plans a first-phase exploration program which will include both underground and surface drilling to test known mineralized shoots and other known targets in a mile-long section near the centre of the land package.

Some 34 holes are planned, all of which are permitted and ready for drilling. Second-phase drilling, both underground and surface, will then be focused on delineating and blocking reserves resulting from the first-phase program.

Kalahari also has acquired a number of mineral properties in Mexico, and is currently seeking financing or joint ventures to further explore these properties.