The 3,200-acre Millie Mack property is 18 miles east of Burton, B.C., in the Slocan mining district.
“Drill rigs are on their way to the property,” and a minimum of 10,000 ft is to be drilled this summer, says President Ian Park. He estimates the work program could cost as much as $2 million, if results are encouraging.
The company hopes to complete a feasibility study later this year evaluating the possibility of early production from a flat-lying gold zone. Park says the gold deposit would be amenable to open pit mining methods .
He estimates that 17 million tons of material averaging 0.06 oz gold and 2.0 oz silver per ton are present in the main deposit.
The program under way consists of four parts including diamond drilling, bulk sampling, and regional mapping to define graphitic layers associated with gold mineralization.
Initial drilling is designed to define at least two million tons of mineable reserves in the proven category, sufficient to justify production at a rate of 1,500 tons per day.
Core samples from closely- spaced drill holes will provide material for bulk sampling and metallurgical testing. A previous $1.2-million bulk sampling program confirmed the presence of a high grade gold zone related to a local fault structure cutting graphitic strata on the property.
About 46 tons of rock were taken from a graphitic argillite layer at an elevation of 5,800 ft. The bulk sample averaged 0.167 oz gold and 6.02 oz silver, according to Greenstone.
Geological interpretation of results obtained to date indicate that graphitic strata cut by faults are the best targets for gold mineralization on the property. Historical data and recent sampling have identified seven additional graphitic horizons between the uppermost “5800 layer” and the valley floor, 3,000 ft below.
Recent samples from the “5500 layer” yielded 0.19 oz gold, while samples of previous workings in the “3650 layer” returned 0.44 oz gold, 16 oz silver, 3% lead and 11% zinc. Another anomalous zone has also been detected in the “3200 layer.”
At the conclusion of the upcoming feasibility study, Dragoon Resources (VSE) will have the right to earn a 50% working interest in the property by assuming 55% of previous costs, up to the feasibility stage.
Greenstone recently entered into a combined private placement and rights offering agreement which will provide the company with additional funds totalling $10 million. The above are subject to regulatory approvals.
Proceeds from these financings will be used for drilling at Millie Mack and for additional work at Greenstone’s Oronorte gold mine in Colombia and its Recio property in Costa Rica. Production at Oronorte is scheduled to begin in November at a rate of 24,000 oz per year, the company says.
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