A geophysical program is under way on a large land position recently acquired by Kalahari Resources (VSE) about 35 miles southeast of the famous Homestake gold mine near Lead, South Dakota. Kalahari has the right to earn 100% of the land position, subject to lease option payments and net smelter returns up to 5%. The company said gold mineralization in several former producers in the project area is hosted in a Precambrian iron formation in a geological setting similar to that of the Homestake mine.
Based on estimates in 1940 reports by the U.S. Bureau of Mines which were corroborated by a recent independent estimate, the company reports that two former producers contain preliminary reserves totalling 1.4 million tons of 0.31 oz. gold per ton.
There has been no production from any of the mines or prospects since the 1940 report, nor has there been any surface or underground drilling in the two old mines. The company also noted that the vertical extent of the gold mineralization is unknown below 450 ft. in one mine and below 900 ft. in the other.
Kalahari President Albert Applegath also reports that the company expects to acquire three mineral projects in Mexico.
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