New World reserve estimate boosts contained gold by 69%

A final calculation of preliminary reserves at the New World property owned 100% by Crown Butte Mines (TSE) shows that 88% of the project’s contained gold and 76% of tonnage are classed as underground reserves.

The company views this as “significant” because it is likely to have less public opposition to underground mining than to open pit production which was the more likely scenario when exploration began. The New World property is in Cooke Cty., Mont., near Yellowstone Park, and is still in the public review process and permitting stage.

After taking into account 1991 drilling, total preliminary reserves increased by about 43% from 8.4 million tons to 12 million tons grading 0.22 oz. gold uncut (0.18 oz. cut) and 0.87 oz. silver per ton and 0.75% copper. The contained gold (on an uncut basis) increased over 69% to 2.7 million oz. from 1.6 million oz.

The tonnage increase was entirely in the Homestake deposit where reserves grew from 2.7 million tons to 6.6 million tons, and gold grade (cut) increased from 0.16 oz. to 0.18 oz. per ton. Last year’s infill drilling at Miller Creek led to revised reserves of 2.2 million tons averaging 0.29 oz. gold (cut). The three remaining deposits were not drilled in 1991, and their reserves remain unchanged.