Results encouraging from Reliant drilling

Three gold prospects in the Western United States were targets for drilling programs by Reliant Resources and Newhawk Gold Mines this season.

Reliant has an option from Nord Resource Corp. to earn a 70% interest in all three prospects by spending $2 million over four years. Newhawk, as operator, can earn 35% of Reliant’s interest by spending the first $400,000 of exploration.

At the Sliderock prospect in Granite Cty., Mont., geological mapping, sampling and trenching defined gold mineralization in an area 3,000×200 ft and open on all sides. Thirteen vertical rotary holes were drilled 900 ft along the zone and all encountered gold values. Three of the best holes returned values of 0.15 oz gold per ton over 20 ft, 0.12 oz over 25 ft and 0.19 oz over 20 ft. A $250,000 program is planned for 1988.

Another $250,000 will be spent on the High Grade prospect in Modoc Cty., Calif. A total of 810 ft of rotary drilling was completed to test the continuity and grade of three zones outlined by the previous 13,000 ft of drilling. The program was terminated prematurely but the best drill intercepts were from the Klondike zone (15 ft of 0.177 oz) and down-dip on the Alturas zone (25 ft of 0.147 oz).

At the Smith Canyon prospect in Okanagan Cty., Wash., a 1,500-ft drill program was planned but only four holes were completed due to unfavorable ground conditions. Exploration plans for 1988 are under review.