In northern Nevada, Alta Gold (NASDAQ) has started its third phase of drilling on the Olinghouse gold project, where preliminary results have confirmed the presence of high-grade mineralization.
The program, consisting of 42,000 ft. of core and reverse-circulation drilling, began with the twinning of a previous hole to verify assay values. This first core hole cut two different ore zones and contained significant visible gold.
At a depth of 330 ft, the hole intersected 64 ft. grading 1.97 oz. gold per ton, including a 31.5-ft. interval at 3.9 oz. gold. The core hole also hit 61 ft. of material grading 0.049 oz. gold at a depth of 112 ft.
Results of the second core hole have yet to be received. Situated 400 ft. to the west, it too contains visible gold.
The company will drill seven core holes, which will twin previous rotary holes. Several of these have returned high-grade intercepts.
Another 90 reverse-circulation holes will be drilled in this third phase of drilling, the objective being to prove up and expand existing reserves. The geologic resource at Olinghouse (situated 30 miles east of Reno) is estimated at 775,000 oz., of which more than 400,000 oz. have been defined as probable reserves.
The company is developing a mine plan, which it hopes to put into action by year-end.
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