The search for deep sulphide deposits at Newmont Gold’s Deep Post prospect on the Carlin gold trend near Elko, Nev., will speed up this spring, the company said recently.
In a bid to pull more record- breaking drill intersections at the promising Post property where a huge open pit operation is planned, the New York-based Newmont Mining subsidiary is allocating $4 million for deposit definition and deep exploration purposes.
The announcement comes just nine weeks after Newmont intersected 0.93 oz gold per ton across 470 ft., while drilling an area close to the boundary separating Newmont land from American Barrick Resources’ (TSE) Goldstrike property.
Newmont Gold reported first quarter net income of $19.2 million, or 18 cents per share, compared with $14.9 million or 15 cents per share in the first quarter of 1987. Gold sales were 139,900 oz compared with 132,500 oz in the first quarter of 1987.
Due to extensive stripping of waste material, Newmont processed 19.2 million tons of ore in the first quarter compared with 9.8 million in the first quarter of 1987.
During the quarter, Newmont’s two mills treated 1.1 million tons of ore, compared with one million in 1987.
As part of a 5-year plan designed to increase production from 930,000 oz this year to 1.6 million by 1991, Newmont says it spent $58 million on capital projects during the first three months of 1988.
An $18-million secondary crushing facility at the south leach is now operational. A north area leach plant began operations April 6, and the leaching at the Rain orebody is scheduled to begin treating ore in mid-May, Newmont says.
Newmont Gold says it has 15 million oz of proven reserves in its Carlin-area holdings. That represents the largest reserve position of any company in North America.
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