Exploration potential of U.S. “second to none” says Placer

In the U.S. that means Nevada. The Carlin Trend in the state’s northeast corner is thought by some to rival Timmins in Ontario and South Africa’s Witwatersrand as one of the world’s premier gold provinces. In the U.S., east of the Rocky Mountains, gold is much more rare.

El Gonzalez-Urien, the new and energetic vice-president of exploration for Placer Dome U.S. of San Francisco, knows the challenge and the odds, and he’s working toward success in a very systematic and logical way. His area of responsibility is carved into five districts covering the western U.S. and Alaska and his staff are going over the ground with a fine tooth comb. He calls it generative work.

“A generative program is a proactive, systematic activity which uses all current exploration tools and the aggressive efforts of geologists to select and acquire mineral prospects.

“We go over ground whether it is staked or vacant; if it has potential and it’s open we stake it; if it’s owned we discuss a joint venture. We listen to everybody, and we are willing to talk participation with anyone who has what we think is a good prospect.”

Gonzalez says understanding the geological controls of a deposit and then looking at every prospect in the light of those factors is a proactive approach to exploration.

“You can’t always wait for prospectors to bring you proposals. You have to find out where you want to be, ask yourself where is the best geology and then go over it with the help of government data, sampling, mapping, talking with people.”

Out of this process, Placer Dome might in a district find or acquire one or two prospects of interest that would merit an investigation of underground rock structures to see whether they are more receptive to having carried mineralized fluids than others.

Further work may produce a discovery, an event usually somewhat less dramatic than it sounds, which justifies drilling. If those results are very good, more machines may be brought in to drill a grid pattern across the property.

Placer Dome U.S. is conducting its search with greater urgency than before. “In order to provide new mines for profitable growth, Placer Dome U.S. exploration tries to: — acquire at least two advanced prospects a year in the U.S. and define their potential, — increase the number of drilling projects, and — expand activities to new mineral trends including exceptional base metal and non-metallic deposits.

The exploration budget is currently split 85% to gold and 15% to base and industrial metals and coal.

“We plan to adjust this to a split of about 75% gold and 25% other minerals while continuing to seek gold systematically,” says Gonzalez. “Our objective for 1990 and beyond is to spend at least half of our budget on project drilling. This way we have the best chance of producing new reserves by developing projects in the early stages of exploration.

“We think the potential for profitable new mines in the U.S. is second to none.”

From Prospect, a publication of Placer Dome.

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