Energex/Geostar drilling yields positive results

Recent drilling on a project located in a historic gold mining district straddling the Nevada/Utah border has returned “positive” drill results, according to joint venture partners Energex Minerals (TSE) and Geostar Mining Corp. (VSE).

Energex President Arne O. Birkeland describes the Gold Springs project as a potential bulk tonnage, heap leach operation. Energex has a 51% interest in the project and is operator.

The company said the majority of the 4,000-ft reverse circulation drill program was carried out on the Jumbo zone, an epithermal system so named by early prospectors because it is one of the district’s largest structures, with surface widths of up to 150 ft and known strike length of 2,000 ft.

Energex drilled 10 holes on five sections to test 850 ft of strike length over a vertical range of 500 ft. Results from the zone include: 80 ft grading 0.070 oz gold per ton, which includes 20 ft. grading 0.113 oz; 40 ft. grading 0.078 oz; 5 ft grading 0.108 oz; 10 ft. grading 0.498 oz and 5 ft grading 0.364 oz.

Energex said the drilling demonstrated “good continuity of gold values across mineable widths” along a strike length in excess of 800 ft, with the zone open to depth and on strike to the south.

Drilling was also done on the Thor and Etna veins systems with the best values from the Etna zone which returned a 10-ft intersection grading 0.258 oz. The balance of drilling in this area returned low grade or geochemically anomalous values, Energex said.

The companies are now evaluating information gained from work done on the property, but Birkeland said follow-up section drilling is definitely warranted to test the southerly and depth extensions of the Jumbo zone. “The zone outcrops on surface and appears to be amenable to open pit mining,” he sa id.

While no metallurgical test work has yet been done, Birkeland said the material appears to be similar to other epithermal deposits in the southwestern states.