Study recommends more drilling for Pan

A preliminary scoping study has provided Castleworth Ventures (WTH-V) with a blueprint for continued advancement of its Pan gold project in Nevada’s White Pine Cty.

President John Watson says the company was heartened by the study, which concluded that additional drilling to develop more resources “may result in an economic deposit at current gold prices.”

Pan hosts an indicated gold resource of 17.8 million tons grading 0.019 oz. gold per ton (336,700 contained oz.), plus an additional 7.9 million tonnes at 0.016 oz. in the inferred category. This resource estimate, calculated by a Qualified Person under National Instrument 43-101, was based on 476 holes totalling 129,255 ft. and a cutoff grade of 0.01 oz. gold.

The study recommended several steps to improve project economics. The most important of these was the need to refine the metallurgical criteria for the various rock types for both mine-run and 2-stage crushing sizes, in order to focus exploration on higher recovery rock types.

The project has two known areas of mineralization, North Pan and South Pan, which have differing characteristics. South Pan is believed to be amenable to heap leaching without crushing, whereas North Pan contains areas with higher silica that may require crushing to achieve adequate recoveries.

The study recommended that more drilling be carried out to develop additional resources. With some portions of the deposit open at depth or along strike, and several untested targets yet to be drilled, the study described the chances of developing more resources as “good.” Castleworth also notes that the report did not take into account a 21-hole drill-program (totalling 5,545 ft.) completed last summer. Another phase of drilling, totalling 12,000 ft., should be completed shortly.

The study by Mine Development Associates raised the possibility of improving grade by angle drilling to incorporate the effect of higher grades (associated with high-angle structures within the gold zones) that previous vertical drilling might have missed.

The preliminary scoping study estimated that capital costs of an open-pit mine would be US$15.6 million, with operating costs pegged at US$3.72 per ton.

Castleworth intends to focus on issues of grade, recovery, total tons, and capital requirements raised by the study.