Converse project shaping into large resource for JV partners

Drilling by Uranerz has almost doubled the gold resource at the Converse gold property in northwestern Nevada.

A 25-hole drill program on the property, 180 km northeast of Reno, has now outlined 39 million tonnes grading 0.7 gram gold per tonne (43 million tons grading 0.02 oz. per ton) in the main area of mineralization. A further 6.4 million tonnes (7.1 million tons) at the same grade has been delineated in an open extension of the zone to the north.

Uranerz, which holds a 25% interest in the Converse property, is exploring on behalf of joint-venture partners Romarco Minerals (r-t) and Santa Fe Pacific Gold, a unit of Newmont Gold (ngc-n). Santa Fe, which owns the Lone Tree mine, 6 km north of Converse, has a half interest and Romarco the remainder.

The recent drilling was focused on targets in a sparsely drilled area north of the Main zone. There, the second-last hole in the scheduled program intersected a 76-metre zone grading 1.4 grams gold per tonne and a 41-metre zone grading 0.7 gram. The first mineralized interval is relatively close to surface and may indicate additional potential to the north of the Main zone.

The drilling on Converse has tested several gravity anomalies that appear to map bedrock in areas of shallower overburden. Holes have been drilled on 60- to 120-metre centres, and it is hoped that infill drilling will enable the current preliminary resource figures to be refined.

Romarco also has drills turning at its Midas property, in the northeastern part of the state, and plans to mobilize rigs to its Gance Creek and Snowstorm properties.