Nevada drills Limousine Butte

Junior Nevada Pacific Gold (NPG-V) has renewed drilling at its Limousine Butte project in east-central Nevada.

The 1,600-metre program will consist of eight holes in the Ressurection Ridge area, where upwards of 11 grams over 10.7 metres was intersected in previous drilling. The highest grades occurred at the intersection of northwestern- and northeastern-treding faults, so similar targets will be emphasized in the current campaign.

Resurrection Ridge is one of five disseminated gold deposits known to occur at the 40-sq.-km property. All are related to a deep-seated porphyritic intrusion and remain open to expansion.

In 2002, Newmont Mining (NEM-N) estimated combined resources at 38.5 million tonnes grading 0.55 gram, based on a cutoff grade of 0.2 gram. Prior to that, in the 1980s, then-owners Alta Gold and Echo Bay Mines recovered just under 100,000 oz. from a heap-leach operation at the northeastern corner of the property.

Earlier this year, Nevada Pacific regained full control of the project after Newmont sold its half-interest in return for a sliding-scale net smelter return royalty, including an advanced payment of US$1 million if commercial production is achieved. The major earned its stake in 1999 by spending the required US$1 million on exploration.