NEVADA SPECIAL — FirstMiss finds more gold to extend Getchell operation

While exploration at the Turquoise Ridge deposit in northern Nevada has turned up enough gold mineralization to warrant a production decision, the property’s mineral potential has yet to be fully appraised. Even now, as development plans are being pushed forward, owner FirstMiss Gold (FRMG-Q) is finding areas of additional mineralization that indicate the operation will be far larger than originally dreamed.

On a recent tour of the property, The Northern Miner got a firsthand look at what lies ahead for the company (a spinoff of First Mississippi) and its mine.

FirstMiss discovered the Turquoise Ridge deposit at a time when it was deciding whether or not to continue operations at the Getchell mine, situated half a mile to the southwest.

The company began mining gold from Getchell in 1985, since which time production has slowed to the point where most of the near-surface reserves have been played out. “We were down to about 1.1 million oz. from the Getchell underground,” recalled David Russell, vice-president and chief operating officer for FirstMiss.

The discovery hole at the Turquoise Ridge deposit was made overtop the low-grade stockpiles of Getchell, and was drilled in mid-1994. It was then that the company decided to carry on with the overall operation. “To keep the mill feed steady, we decided to fast-track the exploration and development,” Russell said. The company mounted rigs on top of the stockpiles and drilled the target intensively.

At present, two-thirds of the ore mined at Getchell comes from the stockpiles, while the remainder is extracted from underground workings.

Quarterly earnings show a net loss due to the higher cost associated with mining the stockpiles.

Full production

In the aftermath of a positive feasibility study and a public offering that netted US$137.5 million, the company is pushing ahead with plans to bring about full production at Turquoise Ridge.

Construction on the first shaft into the deposit began in early 1996, and by the end of March, the ventilation shaft had been excavated to a depth of 110 ft. Recently, headframe construction and hoist installation have begun. The shaft will be deepened once the hoist is in place. FirstMiss also has begun collaring a second shaft, for production purposes.

Additional plans call for construction of a second portal (which is nearly complete) at the underground mine and a new backfill plant (which will allow for higher production rates).

Drilling for the feasibility study at Turquoise Ridge included 81 holes, but, as Senior Geologist Eric Berentsen said, “We had no time frame to drill out the deposit in full.”

As of March 1996, reserves for the entire Getchell property stood at 11.4 million tons grading 0.26 oz. per ton; this is equivalent to more than 3 million oz. gold. The figure includes 4.2 million tons grading 0.35 oz. per ton, which constitute the Turquoise Ridge deposit. Mineralization there occurs at a depth of 1,400-3,000 ft. (possibly deeper) below the surface.

The Turquoise Ridge lies on a fracture zone branching off of the main Getchell fault, and other structures, parallel to this branching zone, were recently discovered. Exploration is ongoing to determine the extent of this mineralization.

High grade

One area in particular that is attracting attention is south of the shaft and about 1,000 ft. southeast of Turquoise Ridge. FirstMiss encountered high-grade mineralization there while drilling for a dewatering well.

Six core holes have been drilled in the area, from which the company has calculated an inferred resource of 1.6 million tons at an average grade of 0.465 oz. (or 750,000 oz. gold using a 0.25-oz. cutoff). The mineralized zone covers an area measuring 500 by 700 ft. and exists at a depth of 1,200-2,500 ft.

The company intends to expand the 1996 drill program from US$5 million to US$7 million. The extra US$2 million will be used for 20 additional core holes, most of which will be drilled between the shaft area and Turquoise Ridge.

Farther south from the shaft area is the Powder Hill area, where FirstMiss has also intersected considerable high-grade mineralization. Again, the full extent of this mineralization has not been determined.

FirstMiss is, at present, mining underground along the Getchell fault immediately west of and below the main open pit. As a result, it has turned up significant mineralization that had previously gone unnoticed. Reserves in the Main Getchell underground orebody consist of 3.9 million tons grading 0.34 oz. per ton (equivalent to 1.3 million oz.). This structure dips eastward toward the northwest-dipping Turquoise Ridge deposit.

The company also located significant mineralization farther to the south, along the Getchell fault at Hansen Creek, where deep drilling has outlined a small reserve of 51,200 oz.

Rounding out the list of target areas on the Getchell property, FirstMiss has significant mineralization to the northwest, adjacent to the Twin Creeks property, owned by Santa Fe Pacific Gold (GLD-N). And the potential for future discoveries on the 33,000-acre property cannot be ruled out.

FirstMiss will change its name to Getchell Gold in June.