Recent Carlin successes could be Nevada’s greatest ‘jackpots’

As one of the world’s gambling capitals, Nevada has always been a kind of mecca for thousands of would-be millionaires hoping to make a fortune on the slot machines and blackjack tables.

But as indicated by results in the northeast portion of the Silver State, a couple of major mining companies have been trying their luck over 1,000 ft beneath the sage brush and hitting the jackpot with amazing regularity.

Driven by the kind of drill intersections which geologists dream about, Newmont Gold and American Barrick Resources are rapidly uncovering gold reserves which experts would have considered unthinkable even two years ago.

Toronto-based Barrick was the first to focus attention on a 45-mile area known as the Carlin trend when it pulled the first deep (below 1,000 ft) major sulphide discovery in March last year. The 20-year-old gold trend had previously been known for its low grade surface oxide deposits.

But Newmont Gold of New York has since eclipsed Barrick’s achievement with record-breaking intersections which averaged 0.93 oz per ton over 470 ft.

While the Carlin trend contains reserves of 27 million oz of gold in 21 deposits (about 15 million oz belongs to Newmont Gold), experts say it is bound to get bigger. Gold rush

If, as seems inevitable, they are proved correct, at least 16 companies will benefit either directly or indirectly from production at the site of America’s latest gold rush. What follows is an update on their activities.

* Newmont Gold — As the largest landholder along the Carlin trend, Newmont Gold will benefit most from any new discoveries in the region. The New York-based subsidiary of Newmont Mining has 15 million proven ounces contained in seven open pit gold mines which are scattered along a 20-sq-mile area.

Production from the Bootstrap, Post, Genesis, Blue Star, North Star, Rain and Gold Quarry open pits, will make Newmont North America’s largest gold producer this year, with 930,000 oz

But the New York company is spending $404 million to boost its output to 1.6 million oz by 1992.

Part of that is being spent on a deep drilling program at the company’s Post deposit where a number of record breaking drill intersections were pulled recently.

As reported (N.M., Feb 8/88), a 1,040-ft drill intersection grading 0.495 oz gold per ton may be a candidate for the record books. Including 470 ft of 0.93 oz, it goes down as the richest assay ever recorded over such a long intersection. Monstrous intersection

Unconfirmed rumors suggest it has been dwarfed by yet another monstrous intersection.

The intersections were encountered in an area straddling the border separating the Newmont and Barrick sides of the Post deposit where the two companies have tentatively agreed to mine the surface oxide and deeper sulphide reserves in a joint venture.

Because of the size of those reserves, (20 million tons of 0.053 oz on Barrick’s side and 1.2 million oz attributable to Newmont), a number of ideas including a one- mile mega pit have been tossed around.

While Newmont has been mining shallow oxide gold reserves from its Carlin mines since 1965, it was motivated to change its strategy when American Barrick reported some astounding results from deep drilling at its Goldstrike property.

Located just north of Newmont’s Genesis deposit, Goldstrike averaged around 40,000 oz annually before Barrick came on the scene in late 1986.

After the Toronto company raised numerous eyebrows by pulling 620 ft of 0.3 oz at 1,400 ft, in March 1987, beneath its side of the Post deposit, Newmont began to test for deep sulphides on its own side of the boundary. Sulphide deposits

Newmont is also drilling for similar sulphide deposits at the Gold Quarry mine, which already contains the largest known deposit along the Carlin trend. Discovered in 1981, it contains 198 million tons grading 0.042 oz.

* American Barrick Resources — While the Toronto company is relatively a new resident with a 10-sq-mile land holding along the Carlin region, it must take much of the credit for the interest which this gold field has generated.

After acquiring the Goldstrike ground in late 1986 from Pancana Minerals and Western States Minerals, the company started an agressive deep drilling program which should make Barrick this country’s largest all-American gold producer.

With reserves of 20 million tons grading 0.053 oz contained in its surface Post deposit, Barrick plans to increase its Goldstrike output to 860,000 oz by 1991 from 52,000 oz in 1987.

Much of that output will come from two deep deposits, the Deep Post and Betze, which appear to be contained in one vast deposit. When the last reserve figures were released in late 1987, the Deep Post was estimated to contain probable reserves of 2.8 million tons averaging 0.39 oz and an additional 2.7 million tons of 0.40 oz in possible reserves. Betze deposit

Located northwest of the Post, the Betze was thought to host a probable reserve of 3.7 million tons at 0.22 oz and 4.2 million tons at 0.21 oz in possible reserves.

But as reported (N.M., Jan 18/88), some new Goldstrike results suggest that ore is continuous between the Post and Betze and that it extends both further north and south than was previously thought. As a result, the company is planning to announce a new reserve estimate, and definite plans for mining them, at its annual meeting.

* Franco-Nevada Mining — As the holder of 4% royalty and 5% net profit interest in American Barrick’s Post and Goldstrike claims, the Toronto-based company is waiting for the right offer before selling its only asset.

“If there is a utopia in mining, then this is it,” remarked Chairman Seymour Schulich recently.

* Euro-Nevada Mining — After American Barrick discovered the Post and Betze deposits last year, Franco-Nevada opted to spin out its non-producing assets into a new company called Euro-Nevada.

Although it has interests in about 12 exploration properties, the company was formed essentially to make royalty acquisitions along the Carlin trend. First move

Back on Dec 14, 1987, the company made its first move when it acquired a 4.9% net smelter return on about 320 acres of land covering Newmont Gold’s Maggie Creek and Gold Quarry Mine.

Carlin’s largest deposit, Gold Quarry, contains 198 million tons grading 0.042 oz, of shallow reserves and Newmont is probing beneath the property for deeper sulphides.

* Galactic Resources and Cornucopia Resources — Almost as soon as Barrick released the first results from its deep drilling program, the Vancouver partners expanded their Carlin holdings to 100,000 from 13,000 acres.

Since the Cornucopia and Galactic have delineated the huge Hollister deposit at their Ivanhoe property, the expansion move appears to have paid off.

After outlining a 27-million ton shallow deposit containing one million oz of grade 0.042 oz, the partners are hoping to have a 50,000- oz-per-year open pit operation under way by the end of this year.

In a bid to test for Barrick-style deep reserves, they are also drilling for hidden sulphides beneath the Hollister deposit.

* FMC Gold — The wholly- owned subsidiary of Chicago-based fmc Corp. is involved in a joint venture with N. L. Baroid at the 350-claim Rossi gold property. Extensive drilling

The property which adjoins Dee gold mine to the north has been the subject of extensive drilling, but district geologist Robert Whittemore wouldn’t say how much.

According to Whittemore, a deep drilling program has been discussed, but the company has made no firm decisions yet. “We are waiting to see what happens along the rest of the trend,” he said.

* Dee Mining Co. — With so much new gold being discovered on its doorstep, its hardly surprising that Dee Mining has commissioned a deep drilling program beneath the Dee Gold project.

Dee Mining is controlled by partners Rayrock Resources (29.3%), Lacana Mining (29.3%) and Silver State Mining (29.3%) and John Livermore (12%).

Located at the north end of the Carlin trend, the mine produced 43,351 oz gold from heap leach operatio
ns in 1987.

* United Mining Corp. — The Reno-based company is involved in a joint venture with Westmont Mining of Denver at the 2,000-acre Bullion-Monarch property. Located just north of Newmont’s Carlin mine, it was the subject of recent induced polarization (ip) and resistivity studies. Eastern Anomaly

According to United Mining, results from an area known as the Eastern Anomaly indicate significant ip responses 600-800 ft wide.

With a 130-hole drill program completed, United Mining said only one hole tested below 1,100 ft (United says minor gold mineralization was encountered between 1,280 ft and 1,370 ft), but the partners are spending $1.5 million to earn a 74% interest from a subsidiary of Calgary-based Universal Explorations.

* Skylark Resources — The Vancouver-based company is earning a 60% interest in the 4-sq-mile Pan claims from Panax Inc., a wholly- owned subsidiary of pic Prospectors International Corp.

Located five miles northwest of the Dee gold mine and surrounded by Barrick, Newmont and Galactic Resources, the Pan claims have produced encouraging results from a recent ip survey, and a drill program is expected to start soon.

Through either direct or indirect interests in Newmont Gold, at least four companies (Newmont Mining, Consolidated Goldfields, Minerals and Resources, and Anglo-American) will also benefit from increased production on the Carlin trend.