Latin American Special — Las Cristinas sparks interest in

Three years ago, a unit of Placer Dome (TSE) formed a joint venture with Corporacion Venezolana de Guayana (CVG) to evaluate Las Cristinas, a group of properties in Venezuela’s Kilometre 88 district. The 70%-owned project is ideally situated on Venezuela’s national highway, which links the country with Brazil and points farther south.

In recent years, drilling has outlined a measured and indicated resource of about 209 million tons grading 0.037 oz. gold per ton. This resource, equivalent to 7.7 million oz. gold (of which Placer Dome’s share will be 5.4 million oz.), is contained within one portion of the property. The disseminated gold is in surface saprolite material and bedrock and is minable by open-pit methods.

A US$13-million feasibility study of this portion should be completed by the first quarter of 1995, to be followed by a production decision. In the meantime, efforts are being made to identify areas of above-average-grade mineralization within the study area. Additional drilling is being carried out at several other targets on the 6,000-hectare property. Thus far, a large resource has been identified on Las Cristinas, which is good news for Placer Dome and other companies active in the region. Another interested major is American Barrick Resources (TSE), which recently signed an agreement with Canarc Resource (VSE), a junior with a large portfolio of exploration properties in Venezuela and Suriname. Barrick will have the first opportunity to develop any property on which Canarc seeks a development partner.

Meanwhile, in Bolivar state, Canarc can earn up to 50% interest in 11 properties, totaling 14,816 hectares, joint-ventured with Tombstone Explorations (VSE).

Canarc recently announced results from a first phase of surface exploration in the country last year. The junior spent about US$1 million on nine of the properties, each of which has a history of small-scale surface gold production, either by previous owners or local miners called garimperos. As well, each property exhibits geological features favorable for gold deposits, including gold-bearing quartz lodes, shears and stockworks crosscutting saprolitized volcanic rocks near kaolanitized intrusive rocks. Work in 1993 included setting up a field office in Tuneremo and building five bush camps. Geological crews cut more than 525 line km of cut grid, collected more than 12,000 soil and rock samples, mapped more than 12,000 stations for geological information, performed 789 line km of airborne geophysical surveys and interpreted geology from air photographs, topographic maps and geophysical data.

Numerous soil anomalies, some with coincident geophysical anomalies, were identified as targets for further exploration. Second-phase programs are under way on the nine properties, with a preliminary budget set at US$2 million.

Work will include fill-in soil sampling, geological mapping and geophysical surveying, followed by auger sampling, backhoe trenching and drilling. Crystallex International (VSE) has completed a bulk test of tailings on the Albino concession (a joint venture with Vancouver-listed Eurus Resource) near Las Cristinas.

About 3,750 tons of tailings were processed, yielding 1,130 oz. gold at 0.3 oz. Recoveries of more than 90% were achieved.

Crystallex recently acquired a 400-ton leach plant, which is being modified and expanded to treat 650 tons per day, or 20,000 tons per year. Startup is scheduled for July and is expected to come in under budget. About 80,000 oz. of gold are to be produced in the first year, of which Crystallex’s share will be 55,000 oz. Cash costs are expected to be less than US$75 per oz. Meanwhile, exploration of Albino is being focused on the Conductora-Agua No 2 trend. Trenching and sampling have returned positive results (0.2 oz over a true width of 16 ft.) and more trenching is planned, to be followed by drilling.

Crystallex has also started exploring its Santa Elena, Carabobo and San Miguel concessions in El Dorado, part of the Kilometre 88 greenstone belt. The company is acquiring all rights and interests in these concessions for US$11 million.

Earlier this year, high-profile Venezuelan Goldfields (TSE) started drilling various Kilometre 88 properties. An initial program, which consists of 20,000 ft., is testing 10 targets on the Oro Uno, Tapaya, Bizkaitarra and Sor Terisita concessions. Results are expected in the second quarter. In other news, Gold Reserve (TSE) has raised US$21 million to explore the Brisas concession, also in Kilometre 88, and acquire other properties in the country.

Bolivar Goldfields (VSE) is exploring its 17 properties, situated in such districts as El Callao, Chicanan, Marwani and El Dorado. A US$5-million program is under way, with eight geologists and a support staff of 70. About US$1 million of this will be spent on the Tomi concession in El Callao, where trenching has returned assays of up to 0.32 oz. gold over a width of 144 ft. Drill testing of this and two other zones is in progress. Work is also under way on El Pauji, a joint venture involving International Canalaska Resources (VSE) and Delgratia Developments (VSE). The program consists of 24 miles of line cutting, soil sampling and geologic mapping over the north end of the project where several structures have been identified. Ongoing work will determine if these structures represent extensions of known mineralization on nearby projects.

In Bolivar state, partners Nucore Resources (VSE) and New Aegis Resources (VSE) are testing a laterite zone on their Neuvo Corazon de Jesus and La Trinidad properties.