IGR advances projects in Ghana and Idaho

Toronto-listed International Gold Resources (IGR) has advanced several of its projects in West Africa and the U.S.

In Ghana, the first phase of exploration drilling, totalling 40,000 ft., has wound down on the Bibiani gold project. A preliminary estimate of 1.2 million oz. has been calculated for the Main deposit, based on drilling to the third level of the old underground workings. The third-level workings are 340 ft. below surface.

IGR continues to drill the Main deposit below 300 ft.

The company envisages Bibiani as a 5,000-ton-per-day operation, yielding 170,000 oz. gold annually. The reserve target is 2 million oz. Also in Ghana, the proposed joint venture of IGR and Echo Bay Mines (TSE) has been formed. The venture includes all concessions in Ghana (excluding Bibiani) owned or subsequently acquired by either party during the term of the agreement. At least US$3.5 million will be spent on exploration before the end of 1995.

Currently, the partners hold interests in five concessions but will ultimately have a stake in about 10.

The Bibiani North Mine property, immediately north of the Bibiani project proper, encompasses a large soil geochemical anomaly. (The mine produced 36,000 oz. gold for two years before the Second World War.)

An airborne geophysical survey and a ground-based, very-low-frequency survey are planned for the anomaly, and drilling is scheduled for the new year. At the Mpatasie property, a wide area of anomalous gold values from soil samples has been found. Trenching is under way in an effort to establish drill targets.

At the nearby Mehami concession, which lies between the Prestea and GAG gold mines, soil and rock chips have returned assays ranging from 0.5 to 2 grams gold per tonne. Underlying the property is a ridge, which has a significant strike length and will be trenched (and possibly drilled) next year. Between Abosso and a point northeast of the Ashanti mine, the partners hold a 321-sq.-mile property encompassing numerous pits, shafts and adits. This area will soon undergo stream sediment and soil sampling in an effort to outline areas for drilling.

The joint venture also holds an interest in the Nkwanta concession, where trenching is delineating targets for drill-testing.

Elsewhere, in Idaho, IGR has increased probable reserves at the Humbug pit by altering the crushing and agglomeration methods. The project now hosts 12.9 million tons averaging 0.038 oz. gold per ton.

The combined benefits of additional resources plus improved metallurgical costs have prompted IGR to proceed with production planning. For the nine months ended Sept. 30, IGR earned US$127,275 (or US1 cents a share) on revenue of US$1.2 million. This compares with a loss of US$315,074 (or US16 cents a share) on US$1,512 over the same period in 1993.