Nevada heap leach bet acquired by Glamis Gold

Glamis Gold has picked up a heap leach property in Nevada which was previously thought to be uneconomic because of high cyanide consumption. The property covers approximately 24 square miles and is near FMC’s Paradise Peak mine.

A previous exploration program consisting of 58 drill holes outlined a zone of gold-copper mineralization and reserves of 10.2 million tons grading 0.039 oz gold, 0.086 oz silver and 0.37% copper at a 3.7-to-1 strip ratio. The northern portion of the deposit lies closer to surface and would be mineable at a lower strip ratio, the company points out.

President Chester Millar says the high oxide content of the deposit fooled other operators who anticipated that cyanide consumption would be too high for heap leaching. But Glamis applied its extensive heap leach experience to the deposit and produced “very good recoveries with normal cyanidation consumption,” he adds.

The company has signed a lease- royalty agreement with Omega Resources for the property which incidentally is located near Gabbs. Terms of the agreement include a $250,000(US) payment on signing, a second-year payment of $500,000 and a third-year advance minimum royalty payment of $750,000. A 5% net production royalty is due from the start of commercial production.

Glamis has completed two reverse circulation drill programs on its Yellow Aster property in recent months. This particular property is located in Kern Cty., Nev. Reserves in the Lamont zone are estimated to be 2.9 million tons grading 0.031 oz gold at a 1-to-1 strip ratio. In the Yellow Aster glory hole area, reserves are 7.4 million tons at 0.027 oz gold and a 0.5-to-1 strip ratio. There are also 2.6 million tons of dump material which would bring total reserves to 11.3 million tons grading 0.028 oz.

Management feels the cost of producing an ounce of gold from the Yellow Aster will be equal to or lower than the $126 at its Picacho operations in California.