First Idaho moves ahead at Montana leach property

Development work is under way at the San Francisco gold property near Philipsburg, Mont., First Idaho Resources (VSE) said recently.

First Idaho’s U.S. subsidiary Grand Trunk Resources, holds a 50% interest in the former gold producer and can increase its stake to 100% by making staged payments totalling $500,000(US)

Located in the Philipsburg mining district, the property comprises six patented and 10 unpatented claims and could be in production within months.

First mined in the late 19th century, it also contains a 20,000-ton cyanide heap leach pad with material which was previously leached out. Once Grand Trunk has replaced the leached material with 20,000 tons of new ore, production should begin.

While production estimates have yet to be made, First Idaho says there are at least six exposed veins with the potential for over one million tons of oxide ore grading from 0.05 oz to 0.1 oz. The high grade silver potential from the deeper sulphide portions could surpass seven million tons from grade 20 oz silver to as high as 1,000 oz.

The company says two crews are working to reopen the old workings on the San Francisco vein which is known to extend for at least 1,500 ft in an east-west direction.

The oxide portion currently under development is at least 10 to 12 ft wide and extends at least 200 ft below ground level. High grade sulphides continue 800 ft below that level, said First Idaho director Marjorie Morningstar.

The current program is designed to test the oxide portion of the vein to provide for immediate processing at the existing leaching facility currently in operation at the mine site, she said.

Oxide ores will be stockpiled at the mine portal, as the development advances, then transferred to the leach pad after assay results are obtained, said Morningstar. Old reports indicate over-all gold values of 0.1 oz gold per ton can be expected in the oxide ores.

At least six additional veins are thought to occur on the property, aggregating at least 4,100 ft of strike length.