Panorama set to evaluate potential of two projects

With two advanced-stage gold properties now under option, Panorama Petroleums is moving quickly to evaluate its production potential. Reflecting its new emphasis on mining, the company also plans a name change to Panorama Resources which was approved at a recent board meeting.

Panorama’s first acquisition in the minerals sector was the Spanish mine property near Nevada City, Calif. The 3,000-ac prospect was acquired from Homestake Mining which had explored the ground over a 4-year period.

President John Dreier believes Homestake farmed out the ground because it was too small a situation for the major. At a recent information meeting, Dr Dreier estimated gold reserves there at 200,000 oz which could be extracted by low- cost open pit mining methods in conjunction with heap leaching. The ore zone is about three miles long and only two areas have been looked at, he pointed out.

Panorama’s current exploration emphasis involves the Upper Spanish Mine portion of the property. Two drills have been used in the program and the company is taking bulk samples for metallurgical testing. Data is being gathered for a feasibility study which he predicted could be completed this winter. The mineralization is oxidized and appears amenable to heap leach extraction techniques. But there is also some sulphide material which presumably could be processed by conventional milling methods, he noted.

Under terms of its option agreement, Panorama can earn a 100% interest in the property for an expenditure of $2 million(US). Also, by completing a favorable feasibility study and a production commitment prior to March, 1994. There is a royalty payment to the original property owners which is capped at $2.4 million and payments to Homestake as well. Homestake can exchange its royalty interest for a 40% working interest when production is announced.

Panorama’s latest acquisition is the Platoro mine property in Colorado about five miles south of Galactic’s Summitville project. The company can earn a 60% interest from Union Mines, a subsidiary of Union Miniere, a major metals producing conglomerate in Belgium. The company has not had much luck in the North American mining sector and appears more inclined to accept a passive role than a major one. Over $18 million has been spent on the project since 1979, $3 million of that for equipment.

Included in that expenditure was 65,000 ft of core drilling, the collection and sampling of over 10,000 channel samples, extensive metallurgical testing, environmental studies and the installation of major surface facilities.

The work outlined three million tons of gold-silver mineralization grading 0.25 oz gold equivalent. This reserve occurs in the Mammoth-Revenue-Parole vein which averages 8-10 ft wide and is more than 11,000 ft long. Core drilling shows the ore grade mineralization extends to depths of 1,000 ft, he noted.

Dr Dreier said that two ore zones have been outlined on the vein which is mineralized for two miles along strike. Panorama’s objective is to block out a mineable reserve of 500,000 to one million tons which would be sufficient to feed a 350- 500-ton-per-day milling operation.