Partners Silver Standard Resources (VSE) and Carlin Resources (VSE) recently acquired Pine Bell Mines’ 15% interest in the Owyhee syndicate for $130,000. The syndicate has a 5% net smelter royalty interest in the Sona claims in northeastern Nevada which will now be held 60% by Silver Standard and 40% by Carlin. The claims are currently under lease to Independence Mining (NYSE) which has outlined five mineralized areas, including the Mill Creek zone which has been tested with 600 drill holes.
Independence is expected to start mining the Mill Creek zone at the rate of 1,000 tons per day in the second quarter of 1991. The zone has millable reserves of 1.48 million tons grading 0.146 oz. gold per ton, with an additional 334,550 tons of heap leachable material grading 0.041 oz.
The reserves will be trucked to Independence Mining’s nearby Jerritt Canyon mill facilities. A haulage road has already been completed, and the first bench of waste is being drilled.
The Mill Creek zone is expected to provide the cash equivalent of 2,000 oz. gold per year to the credit of the Owyhee syndicate over the next four-to-five years. Of this amount, 1,200 oz. will be for the account of Silver Standard, a junior controlled by Teck Corp., and 800 oz. will be to the account of Carlin.
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