Feasibility study planned for Platoro mine project

The study is designed to quantify reserves, develop a mine plan and assemble data for a final study slated to begin in early 1989. An engineering firm is now being selected to complete the final feasibility document.

Panorama is earning a 60% interest from Union Mines Inc. and is hoping to prove up sufficient reserves to support a 500-ton-per- day operation. Since taking over as operator in September 1987, the company has outlined more than 500,000 tons at an average grade of 0.25 to 0.3 oz gold per ton equivalent, with these numbers expected to be upgraded considerably in the final feasibility study.

The new zone was outlined during recent drifting on the 9,500-level and averages 0.31 oz gold and 9.7 oz silver over an average width of 7 ft. The zone is reported to be 700 ft long and open to the south with the last or southernmost 120 ft grading 0.553 oz gold and 13.5 oz silver.

According to Dick Moores, Panorama’s consultant, the company and previous operators have completed about 3,500 ft of drifting along the vein system on the main haulage level, with a further 2,000 ft of drifting on the 9,700-level which is reached by a decline. The decline has now gone down to the 9,500-level where the new zone of higher grade mineralization was encountered.

The company said recent work is “providing yet additional evidence for a marked and significant increase in grade with depth in the vein,” with the zone of highest grade lying at depth beneath the present workings.

John Dreier, president, also noted that recent work is revealing “more tons at a higher grade than anticipated” in addition to “good metallurgical recoveries” from recent test work.

The Platoro mine property saw limited past production, notably in the late 1800s. The property covers some 19,500 acres along a 5-mi length of the 10-mi-long Platoro Lineament which also hosts the Summitville deposit now in production by Galactic Resources (TSE). Galactic owns about 20% of Panorama’s common shares, although voting control of the shares remains with Panorama.

]]>