With working capital boosted to US$1.5 million via a recent US$1-million private placement, Reno-based
The holes are designed to test a gold-mineralized fault zone at depths of between 150 and 300 metres for a high-grade, structurally controlled Carlin-type system. Previous drilling on the zone returned 6.1 metres of 0.8 gram gold per tonne from surface and another 24 metres running the same grade beginning at a depth of 84 metres. The zone measures 52 metres in thickness and is associated with a shear zone below chert along the margin of a diorite intrusion. RSM says the target shows similarities to Newmont’s nearby Deep Star underground mine.
Drilling will begin in June, as will some surface rock geochemistry and geological and geophysical work.
RSM has an option to earn 100% interest in the project, which comprises 70 unpatented lode mining claims.
Royal Standard’s most advanced Nevada project is 100%-owned Gold Wedge, in the Manhattan mining district. RSM, with the help of Dyer Engineering Consultants, has started the ball rolling toward an underground mining permit from the Nevada Department of Environmental Protection. The company expects the process to take about 6-7 months. Reno-based Mine Development Associates has been charged with preparing an engineering mine plan and feasibility study. The plan will consider a shallow underground mine targeting the central portion of the deposit.
Open along strike
At the same time, a surface drilling program will test the extent and quality of the deposit’s known ore grade extensions. So far, drilling and geologic evidence indicate a strike length of at least 610 metres. Better results from surface drilling by previous owners on the property range between 28 and 93 grams gold per tonne over 3-9 metres. The zone remains open in both directions along strike.
Pending permitting, plans at Gold Wedge call for the construction of a 3.7-by-4-metre decline running 550-670 metres toward the north within the footwall. The development is designed to support full production levels. A 3-by-3-metre drift will be driven into one of the central zone’s bests section of mineralization to obtain a 5,000-to-10,000-tonne bulk sample for metallurgical test work.
Preliminary metallurgical work indicates a recovery rate of 70% from a coarse crush; cyanidation would boost recovery to about 90%. The company is currently weighing the option of initially using an existing gravity and cyanide treatment mill 1.6 km from the project or building a mill furnished with reconditioned equipment.
Royal Standard recently added some land to several promising gold targets within 5 km of the Gold Wedge property. The company believes there is potential for additional gold mineralization on the southern margin of the Manhattan Caldera, which is covered by the property.
Royal’s 70%-owned Pinon project lies on the southern portion of the Carlin belt, 16 km south of Newmont’s Rain mine.
Feeder deposit
Exploration by previous owners identified the potential for several low-grade (about 1 gram gold per tonne) bulk-tonnage deposits. The property also hosts a potentially higher-grade (up to 3-5 gram gold) open-pit oxide deposit, which the company says it may develop with a joint-venture partner. Drilling planned for this year will test for a deeper, high-grade feeder deposit.
In early April, RSM added a fourth project to its Nevada portfolio, inking an option deal on the Como gold-silver project in Lyon County. Under the deal, RSM will pay US$25,000 in each of the first two years in return for a 7-year option. The property is subject to a 4% net smelter return royalty. RSM can acquire the property and the royalty by paying the owner US$1 million or a production payout capped at US$2 million.
The property is 13 km southeast of Nevada’s famous Comstock Lode. Historical underground production from the property targeted the Como vein and produced about 20,000 oz. gold and 500,000 oz. silver. RSM plans to drill-test extensions of the largely undrilled higher-grade veins.
Exploration and limited drilling by previous owners turned up two low-grade bulk-tonnage gold-silver deposits. RSM also plans to follow up on chip sampling which returned up to 168 grams gold per tonne. Drilling on another vein system cut 3 metres running 15.4 grams gold. Surface chip samples yielded up to 14.3 grams.
Gold and silver mineralization in the area is hosted by at least eight structures occurring in an andesitic volcanic sequence.
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