Newmont claims richest hole ever

A 1,040-ft drill intersection from Newmont Gold’s Post deposit near Elko, Nev., may be a candidate for the Guinness Book of World Records. Weighing in at 0.495 oz per ton, including 470 ft at 0.93 oz it is the richest assay ever recorded over such a long intersection.

But the astounding drill hole and similar results reported recently by Newmont and American Barrick Resources, come as no surprise to the man who mapped the 45-mile region known as the Carlin Gold trend.

Back in 1954, Dr Ralph Roberts was working as a roving geologist with the American Geological Survey when he was asked to visit Eureka Cty. in north central Nevada.

At that time the Carlin trend, which now hosts some 27 million oz gold in 21 deposits, was known more for its turquoise and antimony mines.

“We mapped out the alignment of ore deposits and caught onto the idea of the relationship between the deposits and `windows’ along the Robertson Mountain Thrust,” said the 77-year-old native of Rosalia, Wash.

A graduate of Yale University, his evaluation was based on the concept of finding disseminated gold deposits in certain geologic terrains. Published in 1960, Roberts’ 6-page report titled “Alignment of Mineral Districts in North Central Nevada,” has served as a reference for mining companies like Newmont and Barrick which are currently scouring Carlin for the rich sulphide deposits which Roberts says are dotted along the trend.

“With a bit of luck all of these companies can continue to make significant discoveries,” said Roberts who was instrumental in the Barrick find which has focused so much attention on Carlin.

In March, 1987, Barrick caused a sensation when it released the first results from an aggressive deep drilling program at its Goldstrike property in the heart of the Carlin trend.

The results, including a 620-ft intersection averaging 0.3 oz gold from 1,110 ft to 1,730 ft. sparked some major high grade ore discoveries which climaxed last week when Newmont President T. Peter Philip announced the latest record- breaking drill hole.

The hole was drilled at the north end of the company’s Post property at the border separating Newmont and Barrick ground.

Ironically, the initial Barrick results were released just months after Roberts was hired as a consultant by former Goldstrike operators, Pancana Minerals and Western States Minerals.

After bringing Goldstrike to production in 1979, Western States and Pancana were producing 40,000 oz annually from a low grade open pit operation made feasible by extremely low production costs.

“Pancana President Joseph Rothman asked me to evaluate the Goldstrike ore for its deep drilling potential,” said Roberts who consults to Saint George Minerals in Battle Mountain, Nev.

While the Carlin trend had supported a number of low grade oxide mines since the first of Carlin’s disseminated gold deposits was discovered in 1963, none of the resident mining companies had begun to search for the deep sulphide deposits announced in the past 12 months.

“Based on results of a number of deep drill holes, I said they would do well to go deeper,” said Roberts. The advise was offered after Roberts went over the Goldstrike ground with Barrick geologist Larry Kornze in tow. A respected geologist in his own right, Kornze was in charge of operations at Barrick’s Mercur mine in Utah.

When Barrick absorbed Pancana in 1986, and acquired the remaining 50% interest in Goldstrike from Western States, it is no coincidence that Kornze was installed as exploration manager.

“One of the prerequisites for any company looking for high grade deposits is to acquire a large position along the 45×3-mile trend,” said Roberts.

Since Newmont is the largest land holder along the Carlin trend with 20 sq miles, Roberts says the New York-based subsidiary of Newmont Mining will benefit most from any new discoveries. With four drills working at Post, Newmont spokesman James Hill says it is too early to calculate reserves. But Colorado-based consultant Peter Maciulaitis says there is no reason why Newmont can’t emulate Barrick’s success in finding a continuation of the Deep Post and Betze deposits.

An expert on Nevada geology, Maciulaitis is a consultant to Franco- Nevada Mining of Toronto which holds royalty interests in Goldstrike it hopes to sell for around $200 million(US).

With a reserve update expected within weeks, combined reserves on Barrick’s Deep Post and Betze now stand at 2.8 million tons of 0.39 oz probable and 3.7 million tons of 0.22 oz probable respectively. Meanwhile, Newmont is currently probing for deep sulphide deposits at the company’s Gold Quarry mine where Franco- Nevada’s sister company Euro- Nevada Mining has significant royalty interests.

Located south of the original Carlin mine, Gold Quarry hosts the largest known deposit along the Carlin Trend. Discovered in 1981, it contains 198 million tons grading 0.042 oz surface oxide deposit.

“A large land holding gives the company a chance to explore favorable ground between property boundaries,” said Roberts who is consulting to the Vancouver partnership of Galactic Resources and Cornucopia Resources.

Soon after the Barrick results were released, the joint venture partners followed Roberts’ advice by expanding their Ivanhoe property interests from 13,000 to 100,000 acres.

Located in the Carlin trend’s northwest corner near Rayrock Yellowknife’s Dee mine, the Ivanhoe property contains the huge Hollister deposits which hosts a 27-million- ton shallow deposit containing one million oz at 0.042 oz gold per ton.

The Vancouver joint venturers have made a 50,000-oz open pit, heap leach operation their top priority this year. But Cornucopia Vice- president Eric Friedland says his company will also complete a 30-hole program to search for hidden sulphides beneath the Hollister deposit.

“We are just seeing the beginning of what the Carlin trend holds at depth,” he said.