The study by Denver-based American Mine Services will focus on an underground vein deposit more than two miles long, 1,000 ft deep and averaging 8 ft in width.
The pre-feasibility study assigned the deposit a mineable reserve of 630,000 tons (proven, probable and possible) with a diluted grade of 0.16 oz gold per ton and 5.44 oz silver, or a 0.24 oz gold equivalent.
Since taking an option to earn a 60% interest in the project from Union Mines in 1987, Panorama’s program was aimed at blocking out reserves that had been indicated by extensive drilling and drifting by Union Mines.
As operator, Panorama focused its efforts on a portion of the 10- mile-long Platoro vein system which also hosts the nearby Summitville deposit mined by Galactic Resources (TSE). Galactic has about a 21% stake in Panorama.
Panorama’s other key asset is a 100% interest in the Spanish Mine project in southeastern California where reserves were recently upgraded.
The Upper Spanish zone, one of four mineralized zones found on the property, is now reported to contain a proven and probable mineable reserve of 2.7 million tons grading 0.054 oz gold, using a cut off grade of 0.015 oz gold and a 4:1 strip ratio.
The company is basing this reserve on 25,000 ft of reverse circulation drilling. Some 900,000 tons of a similar grade in the possible category was outlined by channel sampling of trenches in the upper part of the deposit.
The company had previously reported a geological reserve of 6.5 million tons grading 0.048 oz gold.
The 1989 program will include mine planning and plant design, infill rotary and core drilling and environmental permitting.
Based on its extensive metallurgical testing to date, Panorama projects that gold recoveries will average 85% over a 60-day leach cycle.
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