With eight drills working at the Rex-Grande zone on the Midas property in northern Nevada, partners Franco-Nevada Mining (FN-T) and Euro-Nevada Mining (EN-T) have estimated a total resource of 2.5 million oz. gold and 39 million oz. silver in all categories.
The proven and probable resource on the Rex-Grande zone is estimated to be 1.9 million tonnes grading 26 grams gold and 398 grams silver per tonne, based on a cutoff grade of 4.1 grams per tonne. The total reserve in the two reserve categories is 1.6 million oz. gold and 25 million oz. silver.
Metallurgical tests by Denver-based Hazen Research have confirmed that the gold at Rex-Grande is free-milling. Results suggest that gold recovery will exceed 98% and that silver recovery will top 80%.
The partners believe silver production could pay for mining and milling costs, leaving gold revenues as an operating profit. In addition, the property has 14 mineralized zones, five of which will be tested in this year’s US$3.4-million exploration program.
Shareholders of the two affiliated companies have approved a 2-for-1 stock split, effective July 12. Outstanding warrants, exercisable for one old share, will now be convertible to two new shares.
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