The geologic resource for the Dewey Dome area of the Thunder Mountain property is estimated at 8.4 million tons grading 0.04 oz. gold per ton.
USMX (NASDAQ) bases the estimate on 65 reverse circulation holes it drilled in 1993, as well as on previous work. The company is performing evaluation work under an option whereby it can buy the Idaho property outright for US$5 million, until April 1, 1995.
Proven and probable, minable open-pit reserves are estimated at 4.7 million tons grading 0.05 oz. based on a 0.021-oz. cutoff and a gold price of US$400 per oz. the estimated strip ratio is 1-to-1.
USMX plans to do additional drilling in mid-1994 to test for extensions of the deposit as well as test the central, higher-grade core. It hopes to increase both the grade and total contained ounces.
Consulting firm Hazen Research of Denver is completing metallurgical tests on the use of gravity recovery methods on the Thunder Mountain mineralization. Results to date have been encouraging, although definitive results will not be available for a few more weeks.
John Haigh, spokesman for USMX, said the project is on private ground but is surrounded by a wilderness area. As a result, the company is avoiding using cyanide as a recovery method.
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