THE GLOBAL SEARCH FOR GOLD SPECIAL — Juniors keep exploration alive in Nevada

The operations of major, high-profile companies continue to account for most of the publicity generated by Nevada’s Carlin and Battle Mountain trends. Equally active, however, is a host of smaller exploration outfits.

As Scott Baxter, president of International Calneva Resources (ICG-V), explains, Nevada offers the best opportunities for juniors. “English is spoken, the laws are similar to those of Canada, and where else can you get property adjacent to a million-ounce deposit?”

Donald Morris, president of Bullion Monarch (BMRK-O), agrees. With more than 30 years of experience in the state, he continues to describe Nevada as “elephant country.”

What follows is a brief look at some of the junior exploration plays under way in the regions:

Carlin trend projects

* High Desert Minerals Resources (HDR-V) and its private counterpart, High Desert Minerals Resources of Nevada, made a splash last year by acquiring land positions between the operations of Newmont Gold (NGC-N) and Barrick Gold (ABX-T). High Desert turned those packages into lucrative, joint-venture agreements with those majors when deep-seated, high-grade mineralization was pulled out of drill holes.

* Trio Gold (TGK-A) and Minorca Resources (MAR-M) are credited with having drilled the deepest core hole on the trend, bottoming nearly 5,000 ft. below the surface. Their Rodeo Creek gold property is in the northern part of the Carlin trend, just northwest of Rayrock’s Dee gold mine and Meridian Gold’s Rossi property.

Exploration in 1995 located a major fault system running for 3,500 ft. across the 29-claim property.

Minorca has spent more than US$1 million on exploration and will proceed with a second round of drilling. The Montreal-based company has earned a 10% working interest in the property, and can increase this to 50% by spending US$3 million on exploration.

* Royal Standard Minerals (RSM-M) of Richmond, Va., is excited about its 40,00-acre Pinion property, 10 miles south of Newmont’s Rain mine.

Ted DeMatties, exploration manager for Royal Standard, sees many similarities between his company’s property and the Rain deposit. In particular, the structural style is similar, and mineralization is hosted within the same formation.

The property contains the South Bullion deposit, a small, near-surface oxide resource of 6.6 million tons grading 0.027 oz. gold per ton, as well as a deeper resource of more than 38 million tons. The junior is considering proving up the oxide resource and seeking out high-grade feeder zones.

* Meanwhile, Utah-based Bullion Monarch and partner Gold Valley Resources are intent on developing their own South Bullion deposit, adjacent to that of Royal Standard. Based on previous work by Newmont, Bullion believes the deposit contains some 400,000 oz. gold.

* Bullion and Gold Valley are involved in another joint venture — with Knomex Resources (KNO-A) on the Willow Creek gold property, east of the Hollister gold mine in the northern part of the trend. The 34-claim property is a grassroots play with good potential for a discovery.

* Farther north on the trend, Romarco Minerals (R-T) is continuing its effort at the Midas district. The junior owns several claims immediately adjacent to the 2.5-million-oz. discovery of Franco-Nevada Mining (FN-T) and Euro-Nevada Mining (EN-T).

Battle Mountain projects

West of the region, in the no-less-prospective Battle Mountain trend, numerous juniors are busy with work programs.

* International Calneva occupies 2 sq. miles adjacent to Santa Fe’s Trenton Canyon property. Several majors have expressed an interest in recent trenching results from the property.

* Calgary-based Digger Resources (DIG-V) controls an 80% interest in 8,800 acres in the Tempo claims, north of the town of Austin. The property contains four good target areas, and drilling is expected to begin shortly. The remaining 20% is held by Nevada-based Fischer-Watt Gold (FWGO-O).

Toronto-based Oro Nevada Resources (ONV-A) recently acquired almost 350,000 acres of private and public land on both the Carlin and Battle Mountain trends. The area includes 179,252 acres of privately-owned land in Humboldt and Elko counties, leased from the Nevada First Ranches, and another 75,776 acres of claims nearby. Oro Nevada has 48,437 acres on the Dean Ranch property near Placer Dome’s Pipeline deposit, and another 44,606 acres staked nearby.

The Pipeline deposit is the impetus for much of the work on the Battle Mountain trend. Even High Desert and Royal Gold (RGLD-Q) are getting into the act. The two have formed a joint venture called Royal High Desert to explore for Pipeline-like deposits. Royal is currently receiving a 20% royalty from the South Pipeline deposit.

Bullion Monarch and Gold Valley are in a joint venture to explore a 440-acre property north of Pipeline, while Romarco controls a large package of land just to the west of Gold Acres.

Elsewhere in Nevada

The exploration activities of junior companies in Nevada are by no means restricted to the Carlin and Battle Mountain trends.

* In the Tonapah area, Eastfield Resources (EFT-V) and Prism Resources (PRN-V) have formed a joint venture to prove up several hundred thousand ounces of the yellow metal from the Hill of Gold and the Three Hills properties.

* X-Cal Resources (XCL-T) has been focusing its attention on calculating a resource in the West Wood area, at the 50%-controlled Sleeper project. More than 10,000 ft. of drilling have been completed, with one hole intercepting 380 ft. grading 0.086 oz. gold starting at a depth of 350 ft., including 75 ft. of 0.358 oz. gold.

* Even Royal Standard acquired a gold-silver play: the Caliente prospect in Lincoln Cty. It also owns 22 claims, called Antone Canyon, in Nye Cty.