Conforming with a trend to test old copper porphyry deposits for gold content, Cactus West Exploration (VSE) is planning a program for its Bank of Idaho property in southwestern Idaho. Cactus West acquired the ground, totalling about 10 square miles, by staking after the previous owners let the claims lapse.
Work on the property in the 1960s and 1970s resulted in a preliminary reserve estimate of 444 million tons grading 0.135% molybdenum sulphide and 0.12% copper.
Dennis Baxter, president of the company, said the property is not likely economic given current copper and molybdenum prices, but noted gold values were not previously tested for.
Baxter said the company has not been able to obtain either drill core or logs from past work.
He did point out the property is in an area that produced over two million ounces of placer gold. He added that local creeks that drain the property have all been placered.
Baxter plans to finance a small program of soil sampling and trenching to test the gold-potential of the property. He estimated an initial budget of about US$100,000 for the program which he hopes to start in May.
He expects to follow up the program with drilling.
Baxter also said Pegasus Gold (TSE) planned to start further work on the company’s Century Gold Hill property, about eight miles southwest of the Bank of Idaho property.
Pegasus is earning a 51% interest in the property by spending US$1.5 million over five years.
Drilling on the property by Pegasus last year intersected generally low-grade gold values over narrow widths, although one hole returned a 20-ft. intersection grading 1.13 oz. gold per ton.
Baxter said Pegasus plans to spend in the order of US$250,000 on the property this year including further drilling and geophysics.
Cactus West has 5.6 million shares outstanding and working capital of about $45,000. The issue last traded at the 25 cents level.
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