Noranda increases reserves at New World gold project

After incorporating all the data from the 1990 field season, a unit of Noranda (TSE) has released final preliminary reserve figures for the New World gold-silver-copper project near Cooke City, Mont.

The skarn project is now reported to contain preliminary reserves totalling 0.38 million tons grading 0.18 oz. gold (uncut), 0.75 oz. silver and 0.69% copper per ton. This represents a substancial increase from preliminary reserves of 4.6 million tons of 0.17 oz. gold, 0.72 oz. silver and 0.81% copper calculated at the end of the 1989 season.

The New World project is owned by Crown Butte Resources (TSE), but a company operated by a unit of Noranda (TSE). Late last year, Crown Butte was notified that Noranda had started a feasibility study for the project.

The major is required to complete the study by the end of April, 1991, as a condition precedent to it acquiring sufficient additional shares to bring its share position in Crown Butte to 60%.

The updated reserve calcultion takes into accont five deposits, two of which the Como and McLaren are considered amenable to open pit mining methods.

Crown Butte said ares with potential to expand reserves include the Homestake’s deposits to the north and south, and the Miller Creek deposit to the east. Subject to weather conditions, 1991 drilling shopuld begin on the Homestake deposit in March.

The breakdown of total preliminary reserves on the New World property is as follows:

tons oz./ton oz./ton Deposit gold silver copper % Como 707,318 0.11 0.54 1.03 Fisher 334,200 0.18 1.13 0.28 McLaren 2,171,035 0.09 0.38 0.70 Miller Creek 2,514,146 0.29 1.33 0.80 Homestake 2,606,446 0.18 0.51 0.54