Results from eight drill holes outside the known gold resources at the Rosebud property in Nevada recently returned erratic, discontinuous gold values.
The Rosebud project is a 49-51 joint venture between Equinox Resources (TSE) and Lac Minerals (TSE).
Lac’s most recent preliminary estimate puts reserves in the Dozer Hill area at about 1.7 million tons grading 0.33 oz. gold and 2.9 oz. silver per ton at a 0.10 oz. gold cutoff grade.
The estimate represents reserves on both the joint venture ground as well as Lac’s wholly owned ground to the north.
The eight recent holes were drilled on the Far East zone, 400-600 ft. east of the East zone which in turn is about 1,000 ft. east of the Dozer Hill area. John Wright, manager of operations for Equinox, noted that the drilling was designed to test a steeply dipping zone of previously intersected silver-gold mineralization trending in a north-northwest direction.
After interpreting the drill results, Wright said it appears that the zone strikes in an east-west direction, and as a result, was missed by the drilling.
The recent drilling also included a confirmatory hole through the 900 zone of the Dozer Hill deposit.
The hole returned 100 ft. grading 1.09 oz. gold from 637 ft. to 737 ft. and a further 25-ft. intersection grading 0.30 oz. gold from 902 ft. to 927 ft. The lower intersection as well as surrounding intersections of the same lower zone have not been included in the reserve estimate.
Wright said the hole gives the joint venture added confidence to proceed with an underground development program on the Dozer Hill deposit. An independent prefeasibility study completed in August recommended proceeding to a final feasibility and underground development program. The companies expect to receive permits for the underground work by year-end, although Lac has not yet committed to proceed with a development program. Wright said he expected Lac to make a decision on the project by next spring.
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