Pegasus continues Talapoosa work

Satisfied with its first phase of work on the Talapoosa property in Nevada, Pegasus Gold (TSE) is proceeding with a second-phase drilling program.

Pegasus has the right to earn a 70% interest in the property by making cash payments totalling US$3.25 million as well as completing property expenditures of US$2.8 million.

In order to keep the agreement in good standing, Pegasus is required to complete a total of US$800,000 in first- and second-phase work as well as make a cash payment of US$250,000 by March 9, 1993.

A principal objective of the Pegasus program will include additional column leach tests similar to those done in the first-phase program. Gold recoveries during large-scale column leach tests averaged about 70% for oxidized material. Tests on unoxidized material are ongoing, with recoveries at about 50% while gold output curves are still positive.

Pegasus is examining methods that will boost recoveries from unoxidized material further.

The second-phase program will include about 12,000 ft. of drilling in 25 holes to better define reserves in the Bear Creek zone as well a trenching program which will begin immediately.

Latest estimates put preliminary reserves in two zones on the property at about 19.6 million tons grading 0.045 oz. gold per ton and 0.6 oz. silver at a cutoff grade of about 0.02 oz. gold.