Newmont Gold’s reserves up 55% to 31 million oz

Just three months after Newmont Gold announced a $404-million program designed to develop its gold deposits on the Carlin trend in Nevada, the expansion policy is beginning to pay off.

While reserves in the proven- probable category remain at 15 million oz, the New York-based Newmont Mining subsidiary has announced a 55% increase in its geologic reserves.

“The new estimate brings Newmont’s Carlin reserves up to 30.9 million tons from 20 million at the end of 1987,” said President T. Peter Philip. He said the latest estimates are based on drilling and analyses of 16 deposits on the Carlin gold trend where Newmont is expected to increase its gold production to 1.6 million oz in 1991 from 589,000 oz last year.

According to Philip, the most significant reserve increases were recorded at the company’s Gold Quarry mine in the south section of the 45-mile Carlin trend.

Drilling in the area has demonstrated the continuity of gold mineralization between the main Gold Quarry orebody and the Gold Quarry Deep West zone, resulting in the addition of 6.5 million oz of geologic resources, Philip said.

The entire Gold Quarry/Gold Quarry Deep West area is estimated to contain 449 million tons grading 0.040 oz or over 18 million oz of gold which represents a 55% increase over the 11.6 million oz announced previously.

Newmont says the Gold Quarry reserve estimates do not include reserves at the nearby Maggie Creek mine area which is expected to become part of a huge open pit. Maggie Creek contains 35.9 million tons grading 0.024 oz or 854,000 oz in all categories.

Drilling at Newmont’s Post deposit, where the New York company recently pulled a record- breaking intersection, has doubled geological reserves to 4.2 million oz.

The 1,040-ft monster assayed 0.495 oz gold and included a 470-ft section grading 0.93 oz.

According to Newmont, the Post reserves are comprised of 2.1 million oz of shallow oxide reserves and an additional 2.1 million oz of sulphide material which lies at depths of 1,100 and 1,800 ft in a new mineralized zone called the Postscript.

Sparked by deep drilling successes at American Barrick Resources’ (TSE) adjacent Goldstrike mine, is spending an extra $4 million to probe its Post claims by sinking 45 deep holes.

The Postscript reserve calculation is based on preliminary samples of 13 core samples which include some of the best intersections ever recorded on the Carlin trend.

Still recovering from the drubbing it took during a takeover bid by Texas oilman T. Boone Pickens, Newmont Mining of New York has agreed to pay Pickens-led Ivanhoe Partners $6.75 million.

Newmont said it is making the payment in an out-of-court settlement of a lawsuit filed by Ivanhoe against Newmont, to avoid protracted and costly litigation in Texas courts.

As a result, Ivanhoe, which attempted to gain control of Newmont last fall, has dropped all litigation and claims involving Newmont in Texas and elsewhere.