VANCOUVER Following the release of a series of excellent drilling results from the Rosebud property in Nevada last year, partners LAC Minerals (TSE) and Equinox Resources (TSE) have reported preliminary reserve figures.
Probable and possible reserves are estimated to total 5.2 million tons grading 0.11 oz. gold per ton at a cutoff of 0.02 oz., cutting high values to 1.0 oz.
If a higher cutoff grade of 0.05 oz. is used, the reserve figure drops to 2.3 million tons at a cut grade of 0.21 oz. gold.
The figures are based on data from 112 drill holes totalling 85,000 ft. and cover ground both wholly owned by LAC as well as the joint venture ground which is 51% owned by LAC and 49% owned by Equinox.
The companies estimate about 55% of the resource is located on joint venture ground.
Although LAC and Equinox are not currently in negotiations to package the two properties into one, it is thought to be a likely scenario.
The release of reserve figures put to rest much of the mystery tied to LAC’s wholly owned ground to the north, about which the company has been tight-lipped. No drilling results from LAC’s property were released and full results from a drill hole released in December were held back because the top section of the hole was on LAC’s ground.
The companies are now working on a prefeasibility study to evaluate the most economical mine plan and to assist with planning future exploration work.
Following the feasibility’s successful completion, an exploration program will be initiated to further test the known main zone which remains open downdip as well as on strike to the northeast.
The companies will also test various exploration targets, primarily on the joint venture ground.
Exploratory drilling to the east of the reserve area has encountered a number of significant intersections including one grading 0.2 oz. gold over 45ft.
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