EXPLORATION 1998 — New crop of juniors exploring in Nevada — Focus on gold and copper-silver potential

A new crop of juniors is exploring for minerals in Nevada, and not all are looking for gold; several are pursuing copper and silver targets.

* Calgary-based Cascade Metals (CEM-A), while focused primarily on gold, is pursuing a gold-silver target in the Battle Mountain trend. The Iris property is 4 miles west of the town of Battle Mountain and contains 86 claims covering 1,200 acres.

Late last year, the company completed an induced-polarization survey across its claims, which confirmed much of the geologic mapping. In the second quarter, Cascade will drill several of the targets defined by the survey.

In southern Nevada, Cascade controls 145 claims in the Lida district, where it is evaluating past-producing silver-gold mines. Mapping, sampling and geophysical work is under way.

* Golden Phoenix Minerals (GPXM-O), a junior formed by several geologists who left Santa Fe Pacific Mining shortly after its merger with Newmont Mining, has put together a land package in the Contact district of northeastern Nevada. Specificically, it controls 3,800 acres of mining claims in the historic mining camp, as well as 111 patented claims (covering 2,200 acres) under option from private company F.W. Lewis.

Meanwhile, Golden Phoenix has signed a joint-venture agreement with another private company, Enexco, whereby it can earn a 60% interest in another 1,000 acres in the district. Golden Phoenix is evaluating the mineral potential of high-grade fissure veins containing copper, silver and gold, as well as looking for porphyry-style mineralization.

Exploration by previous land holders has already delineated small resources in two main structures of mineralization. The Banner zone contains a resource of 7.5 million tons grading 2.2% copper and 0.6 oz. silver per ton, whereas the Helen Smith zone, at the western end of the district, contains 8.6 million tons grading 1% copper. The company is also exploring a skarn target, measuring 400 by 6,000 ft., on an unpatented claim block 2 miles south of the Helen Smith zone.

The aptly named district is at the contact between Jurassic granitic intrusions and metamorphosed Paleozoic sediments.

Golden Phoenix also controls several large polymetallic projects in Alaska, as well as other gold properties across Nevada.

* Toronto-based Mustang Gold (MUST-C) also has its eye on the exploration potential for minerals other than gold. Its 8,000-acre Pearl Canyon polymetallic project is in the northwestern part of the state, where the company recently completed 27 reverse-circulation holes, totalling 6,490 ft.

Highlights include hole 4, which encountered 105 ft. grading 0.37 oz. silver and 0.55% copper; hole 10, which hit 45 ft. grading 0.69% copper and 0.28 oz. silver; and hole 18, which hit 20 ft. of 3.25% copper and 1 oz. silver.

The company also controls two other gold properties in northern Nevada.

* In the Eureka mining district, European American Resources (EPAR-O) controls a well-situated gold-silver property two miles south of Homestake’s Ruby Hill mine.

The property, called Prospect Mountain, contains patented claims dating to the 1860s. These have received only limited modern exploration.

>From October through the end of the year, the company completed more than 100 shallow, vertical, reverse-circulation holes. Results are described as generally positive, and a more thorough evaluation of the property’s geologic potential is planned.

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Possible district play

* Another well-known junior producer, Alta Gold (ALTA-Q), picked up the Lookout Mountain property, also in the Eureka district. Positive results from these properties could transform the area into a district play as the southern extension of the Battle Mountain trend.

* Up in the Independence range of northern Nevada, privately owned Western Exploration & Development is taking a crack at the Doby George gold property, which it acquired from Atlas (ATSP-O). The newcomer has discovered what its chairman, David Fagin, believes is the missing piece to the puzzle.

Last year, the company acquired rights to the IL Ranch, which covers 83,700 acres across northern Nevada, including about 60,000 acres surrounding the Doby George.

More than 700 shallow holes have been drilled on the property, outlining a resource of 758,000 oz. gold (27.1 million tons grading 0.028 oz. per ton).

The company intends to use the resource as a “geochemical anomaly,” Fagin says, in looking for deeper, higher-grade mineralization modelled on Barrick’s Miekle mine in the Carlin trend.

Fagin plans to take Western public, with an initial offering scheduled for mid-year.