A small drilling program on a past producer has GSR Goldsearch (VSE) reviewing the possibility of restarting production. A two-hole program was designed to test the downdip extension of the Bates vein on the Golden Mile joint venture in the Central City district of Colorado. One hole was discontinued because of problems with the rig while the second hole intersected the Bates vein at 1,060 ft. over a width of 10 ft. grading an average of 0.48 oz. gold per ton.
The company can earn a 50% interest in the project from Central City Consolidated Mining by spending US$675,000.
The Bates-Hunter mine was developed to a depth of 700 ft. before being closed in 1938. An oreshoot 440 ft. long and 3-12 ft. in width was reported to have been developed to the 700 level.
The drill hole indicates the oreshoot continues for at least 240 ft. below the lowest workings of the mine.
Goldsearch has not determined if more drilling is required to better define the oreshoot prior to dewatering the mine.
Central City has completed a significant amount of work on the property since 1985, including construction of a new head frame and rehabilitation of the shaft. The surface facilities also include a 100-ton-per-day flotation mill.
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