Metallic Ventures eyes Esmeralda production

Underground fan drilling along strike and dip extensions of the Prospectus vein structure on the Esmeralda property, 100 miles southeast of Reno, Nevada, continues to return high gold and silver values for Metallic Ventures Gold (MVG-T).

Among the highlights of the latest batch of results were an 8.5-ft. section grading 0.28 oz. gold per ton in hole PUG-14, 5 ft. running 0.74 oz. gold and 4 oz. silver, including 2.5 ft. of 1.4 oz. gold and 20.4 oz. silver in hole PUG-16, and 7.5 ft. of 0.36 oz. gold and 3.4 oz. silver in PUG-19.

Earlier this month, five holes on Prospectus returned between 0.1 and 0.37 oz. gold and 0.2-10.6 oz. silver over widths from 2-5 ft. Mineralization remains open along strike to the south, and down dip.

In early August, drilling on a new high-grade ore shoot, dubbed 3710, on Prospectus returned 0.03 to 1.07 oz. gold over thickness of 7-20 ft.

More recently, channel sampling of a cut across the 3800 ore shoot, on the north end of the Prospectus vein, averaged 4 oz. gold over the vein’s 16 ft. width. Included is 3.3 ft. of 19.7 oz. gold and 69.5 oz. silver. In addition to confirming bonanza grades in the 3800 ore shoot, the crosscut provides initial access for mining. Previous drilling from surface on either side of this crosscut returned 5 ft. running 3.4 oz. gold and 16.6 oz. silver and 1.9 ft of 12.1 oz. gold and 52.9 oz. silver, respectively.

A new underground resource figure for Prospectus will be calculated once the current drill campaign wraps up. At last count, underground resources there stood at 187,993 tons grading 0.49 oz. gold and 1.9 oz. silver.

Overall measured and indicated resources at Esmeralda stand at 30.7 million tons grading 0.031 oz. gold, for 952,700 contained oz. Another 9.2 million tons of material running 0.025 oz. gold is classified as inferred resource.

Metallic hopes to have Esmeralda producing at full steam by early 2004. The company is currently fine-tuning the operation’s 350-ton-per-day, carbon-in-leach mill to handle feed from stopes on the Prospectus and nearby Martinez veins.

Underground development of declines, crosscuts, and diamond drill stations continues. The project is fully permitted.

Meanwhile, at its Converse project at the southern end of the prolific Battle Mountain trend, Metallic has wrapped up an 18-hole, 14,183-ft. infill drill program. The reverse-circulation holes were designed to confirm previous drill results and close drill hole spacing to 200 ft. centres on the North and South Redline deposits.

The course of holes included some of the best ever intersection reported from Converse. Hole 118, intercepted 310 ft. averaging 0.03 oz. gold, hole 122 cut 640 ft. grading 0.02 oz. gold, and hole 129 encountered 295 ft. of 0.03 oz. gold. The remaining holes typically include shorter intercepts running between 0.01 and 0.04 oz. gold. The deposit remains open along strike and down dip.

Based on 155 drill holes totalling 104,000 ft., Converse hosts a skarn-hosted indicated resource of 77.4 million tons grading 0.02 oz. gold. Some 61.8 million tons grading 0.018 oz. gold are pegged as inferred resources.

Metallic plans to twin significant reverse circulation holes with core holes to gain a better understanding of the deposit’s geology and metallurgy. More extensive infill drilling will follow.

Metallic’s exploration efforts are being funded by a recently completed private placement of 6.7 million units at $3.75 per unit for gross proceeds of $25.1 million. One unit comprises one share plus half a warrant. One full warrant entitles the holder to buy one share for $5 per share for 18 month from closing.