Rayrock study finds Secret Pass deposit viable

An evaluation of the Secret Pass gold deposit near Beatty, Nev., calls for development of an open-pit, heap-leach mine,

The deposit is part of the Daisy property, which is owned 75% by Rayrock Yellowknife Resources (TSE) and 25% by Inter-Rock Gold (ME). Rayrock is the operator.

The Secret Pass structure has a minable proven and probable oxide reserve of 6.8 million tons averaging 0.019 oz. gold per ton. It is estimated that 103,500 oz. can be recovered, which would support annual production of 22,000 oz. for five years. Total operating and other cash costs are expected to be under US$275 per oz., with a capital cost of US$5.1 million. Heap-leach recoveries are expected to be 80% and mining will be done by a contractor. Both companies think minable reserves can be more than doubled since the geological resource of Secret Pass is 32.8 million tons averaging 0.018 oz. Rayrock and Inter-Rock plan to carry out more infill drilling to upgrade the geological resource to a minable reserve.

Meanwhile, at its wholly owned Jefferson gold project in South Carolina, Inter-Rock has completed a 41-hole, 5,100-ft. reverse-circulation drill program. Ten targets were tested, with one hole intersecting two mineralized zones. The intersections were 0.11 oz. between 0 and 20 ft. downhole and 0.16 oz. from 115 to 150 ft. downhole. The second hole hit 0.02 oz. between 15 and 35 ft. Follow-up drilling of these and other targets will be carried out shortly.