New reserve inventory calculated for Gold Zone

A new reserve inventory has been calculated for Gold Zone Development’s mining property near Anchorage, Alaska, which has been actively explored by the company and its predecessor since 1979. The property produced briefly during the early 1940s but was shut down because of the war.

The reserve inventory is based on breccia material and mineralized shear zones within a 400-ft radius of the Golden Zone breccia pipe to a vertical depth of 650 ft. Using a cutoff grade of 0.12 oz gold, mining reserves are 535,610 tons averaging 0.24 oz gold and 0.77 oz silver.

Additional drilling was tentatively scheduled for mid-June. The work is designed to increase breccia reserves and also vein and shear zone deposits outside the breccia structure, says Charles C. Hawley, president. He expects that drilling above the 650 mine level will convert more than 200,000 tons of possible ore into the probable category.

Computer analysis of sample data suggests there could be more than 600,000 tons of mineralized material in shear zones within a 400-ft radius of the breccia pipe. This zone has not been systematically explored but will be this year. The main purpose of the 1987 program is to add high grade reserves in vein and related shear zone deposits to the existing reserve base.

Mr Hawley feels the current program could “double mining reserves and get us much closer to a feasible project.” The metallurgical aspects of the ore are not ideal but would yield an acceptable 85% recovery rate for gold in his view. The configuration of the orebody appears to be amenable to blast hole st oping or vertical crater retreat, he adds.