Water problems have all but eliminated any chance of finding economic reserves near existing mine workings at Amca Resources’ (VSE) Silver Cross property in Arizona. Earlier reporting of low grade gold mineralization in several holes has now given way to reporting water flows (up to 150 gallons per minute in the latest drilling).
Noting that only low grade values have been encountered to date, the company has confirmed its original assessment that the Silver Cross mine is a typical epithermal deposit.
The company is now considering the merits of a grassroots exploration program on the rest of the property based on past work. “A decision will be made on this over the next month,” it states.
Amca has done test leaching on site using various ore types including sulphides and last year was projecting 10,000 oz gold production from 100,000 tons of ore grading 0.13 oz gold per ton. One analyst estimated 1988 gold production at 29,000 oz despite the fact the company had no clearly defined reserves.
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