Goldnev and Bethlehem to re-activate Noranda’s Goldstream copper

The company also has a number of gold projects, including the Maggie Creek Ranch property in Nevada, the Grew Creek project in the Yukon, and the Todd Creek and Julian Lake projects in northwestern British Columbia.

But because the Goldstream project has the most immediate prospects for production, Goldnev and partner Bethlehem Resources Corp. (VSE) are busy negotiating the purchase of the Goldstream mine and related facilities with current owner, Noranda Minerals.

After negotiations are concluded, Goldnev and Bethlehem will form an equal joint venture to place the project back into production. Noranda will retain a 15% net profits interest royalty.

Corona Corp. (TSE) will also have an indirect interest in any production as it owns a 10.4% equity position in Goldnev following the recent name change and consolidation of Golden Nevada Resources shares into Goldnev shares on a five-to-one basis.

According to Goldnev President John Ivany, the mine workings and mill are in good condition and the property could be reactivated in three to four months.

The mill has a 1,500-tonne-per- day capacity, and has been closed since 1984 after an operating run (both open pit and underground reserves were processed) of less than a year. Poor metal prices were cited as one of the reasons for the closure.

Remaining mineable ore reserves were recently re-assessed by two independent consulting firms using a higher cut-off grade and modified mining methods from those used by Noranda.

Orcan Mineral Associates estimated 2.06 million tonnes averaging 4.97% copper and 3.33% zinc, while Wright Engineers calculated reserves of 1.86 million tonnes grading 4.81% copper and 3.06% zinc.

Elsewhere, Goldnev recently optioned its Maggie Creek Ranch project in Nevada’s Carlin Trend to Barrick Gold Exploration, allowing Barrick to earn up to a 75% interest by contributing a total of $8.95 million(US) in stages over a number of years.

Previous work on the 125-sq mi Maggie Creek Ranch property has outlined a geological reserve estimated at 2.5 million tons averaging 0.021 oz gold, plus numerous other targets that remain untested.

Goldnev now has a 100% interest in the Grew Creek project near Faro, Yukon, after it renegotiated an agreement with former partners Noranda Exploration, Hemlo Gold Mines and Brenda Mines. Noranda retains a 15% net profits interest in any production from the Main zone deposit, and also has a back-in right (to 50%) in any other deposits developed on the property.

The Main zone is reported to contain a geological inventory of 852,100 tons averaging a cut and diluted grade of 0.260 oz gold and 0.98 oz silver at a cut-off grade of 0.058 oz gold.

A pre-feasibility study to determine the potential of the Main zone deposit for an economic mining operation was recently completed which is reported to have summarized that there is potential for a “small, but attractive” mining operation. Goldnev plans more work on the feasibility of bringing the deposit into production.

Goldnev has earned its 50% interest in the Todd Creek project near Stewart, B.C., and is now a joint venture partner with Noranda (operator) and Brenda Mines.

Gold and copper mineralization was outlined in three extensive quartz-sericite alteration zones associated with major fault structures on the property. Since 1987, 47 holes have been drilled on the property. Results include: 26.7 ft of 0.202 oz gold; 38.4 ft of 0.258 oz; 39.2 ft of 0.233 oz; 3.3 ft of 0.705 oz and 12.5 ft of 0.116 oz gold. Noranda is about to start a drill program to further test the three zones.

Since acquiring an option to earn a 100% interest in the Julian Lake project in the Eskay Creek region, Goldnev granted an option to Ravenroc Resources allowing it to acquire 50% of the property.

An airborne geophysical survey was competed earlier this year and a program of remote sensing, reconnaissance and detailed mapping, prospecting, soil and stream sediment sampling, and diamond drilling is planned for this season.

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