Robert Cleaver, president of Goldstake Explorations (TSE), which

The U.S. Environmental Protection Agency will require some controls for the mining operation. One example Cleaver cited was the recovery of wind-blown tailings from area properties. Cost of that cleanup is estimated to be between US$250,000 and US$800,000, he said.

Other partners in the venture are Homestake Mining (NYSE), with a 50% interest, and Strawberry Hill Mining, with a 10% interest. Homestake, through a subsidiary, optioned its interest and has been responsible for all costs to date. The majority of the tailings originate from the long-running Homestake mining operation in the area.

The Whitewood Creek project lies outside the area covered by a moratorium on new mine development. The State of South Dakota enacted the 2-year moratorium (excepting exploration) in February, 1990, covering the Black Hills area, to allow for an updating of mining regulations.

A report by Fluor Engineers estimates the Whitewood reserves contain 727,000 oz. gold. However, Cleaver said volume tests and larger assay samples indicate reserves of at least one million oz. Current plans call for a heap leach operation.

In the same part of the state, Goldstake owns property abutting the Homestake mine to the north. The company is exploring both shallow and deep targets on these Stowell project claims. The junior is hoping to uncover an extension on the Goldstake property of the fairly deep 15 Ledge zone which has been identified by Homestake on its side of the boundary line.

Other projects in which Goldstake is involved include a placer gold prospect in Wyoming where the company is undertaking a 100-hole drilling program this summer.