Inland Gold & Silver (NASDAQ), the Washington-based affiliate of Pegasus Gold (TSE), is on the lookout for a new mine to replace its Toiyabe heap leach gold operation near Crescent Valley, Nev.
In the first seven months of this year, Inland extracted 5,800 oz. from Toiyabe’s mined out open pit and by year-end it expects to recover another 1,000 oz. from existing leach pads at a cost of less than US$250 per oz. With about $5.7 million cash in hand and no debt, Inland is betting on the outcome of exploration projects undertaken by Echo Bay Mines (TSE) and Santa Fe Pacific Mining to regain its status as a gold producer.
In March, Santa Fe agreed to spend at least $3 million to earn 60% of the 50-square-mile Toiyabe property where it is looking for a deep deposit. According to Inland Gold, 19 out of 32 widely spaced reverse circulation drill holes completed under a 28,845-ft. program, intersected gold mineralization.
Encouraged by the better intersections, which included 65 ft. of grade 0.053 oz. gold per ton; 50 ft. of 0.038 oz.; and 50 ft. of grade 0.049 oz. at shallow depths; Santa Fe is continuing its exploration efforts. More recently, the Kettle River joint venture, consisting of Echo Bay and Crown Resources (VSE), agreed to earn a 60% stake in Inland’s 40% owned Republic gold property in Washington State.
Inland Gold’s partners at the 5,000-acre Republic project are contractor N.A. Degerstrom and Pegasus Gold. Collectively, the trio is known as the Curlew joint venture. To earn the interest, the Kettle River venture must spend US$1 million by 1995, including $500,000 on drilling. Pegasus owns 20% of Inland’s 13.4 million issued shares which traded recently at around 50 US cents.
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