Exploration success during the 1989 field season has resulted in a substantial increase in geologic reserves for the New World gold-silver-copper project owned by Crown Butte Resources (VSE).
Prepared by project manager Noranda Exploration, the updated reserve calculation more than doubles the amount of tonnage outlined at the Montana project since the end of Crown Butte’s 1988 work program.
Noranda (TSE) holds a 24.9% equity interest in Crown Butte and has an option to increase this to 60% subject to certain conditions. Plexus Resources (TSE) holds a 19.7% equity interest in the Montana-based company.
Total geologic reserves at the New World project are now reported as 4.64 million tons grading 0.17 oz. gold (uncut), 0.72 oz. silver and 0.81% copper per ton, as compared with the 1988 total of 2.3 million tons grading 0.11 (uncut) oz. gold, 0.49 oz. silver and 0.72% copper.
The biggest contributor to the improved reserve picture at the New World project comes as a result of the Miller Creek gold skarn discovery made in the 1989 season.
Considered an underground resource, the Miller Creek deposit contains geologic reserves of 1.4 million tons of 0.33 oz. gold, 1.21 oz. silver and 0.99% copper. Because the deposit is expanding away from Miller Creek, it has been renamed the Loge Ree deposit in recognition of early participants on the property.
The Como deposit now contains 707,318 tons of 0.11 oz. gold, 0.54 oz. silver and 1.03% copper while the McLaren deposit contains 2.17 million tons of 0.09 oz. gold, 0.38 oz. silver and 0.70% copper. Both the Como and McLaren deposits are considered to be minable by open pit methods.
Crown Butte said it will take further drilling to determine what will be an appropriate mining method for the Fisher zone, which has a geologic reserve of 334,200 tons of 0.19 oz. gold, 1.13 oz. silver and 0.28% copper.
Crown Butte and Noranda plan an active 1990 season for the project, which is now at the permitting stage. The work program is being finalized, and details are expected by the end of February.
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