Drilling at Goldstrike significant: Franco Nevada

A preliminary drill program on the Goldstrike joint venture near Car lin Nev., points to the potential for mineralization at depths previously unexplored, reports Franco Nevada Mining Corp. President Pierre Lassonde.

The Goldstrike property is leased to the 50/50 joint venture of Pancana Minerals and privately- owned Western States Minerals by Franco Nevada in return for royalties and net profit interest.

Four drill holes encountered mineralization at depths below the previous drilling and mining limits. Three of the holes had approximately 100 ft of oxidized mineralization each at depth intervals from about 700 ft to 830 ft. Assay grades over various intervals averaged from 0.08 oz to 0.18 oz gold per ton.

A fourth hole had a 148-ft interval to the 900-ft depth averaging 0.35 oz gold per ton

Mr Lassonde says while these holes are exploratory in nature, their continuity and high grade gold values are likely to lead to increases in both tonnage and grade of the Goldstrike reserves.

Regarding the company’s 100% owned Hasbrouck Mountain property near Tonopah, Nev., Mr Lassonde says a review of all data has identified three areas where significant tonnage could be found. The goal is to increase the total proven tons to more than 15 million tons at a grade of 0.036 oz gold per ton or better and 0.6 oz silver per ton. These reserves would make possible a 2-million ton-per- year operation. Approximately $250,000(US) is needed to bring the property to a production decision.

Drilling continues on several of Franco’s other properties. On the Independence property in Nevada, a series of 15 drill holes has identified a near surface low grade mineralized area. The best hole to date cut a 50-ft interval from the surface of 0.032 oz gold per ton. Mr Lassonde says a second round of drilling will look for a continuation of this zone since the material would be suitable for heap leach.

Near Newmont Gold’s Rain deposit also in the Carlin gold belt, Franco Nevada has put down five holes on its Poker Flats property. The last hole had a 60-ft interval of highly altered material which is being assayed, says Mr Lassonde.

Drilling is scheduled to start shortly on the company’s Millionaria claims in the Bull Run Mountains of Nev. Two large geochemical anomalies have been traced and grab samples with visible gold have been found.

Mr Lassonde reports the company has entered into a joint- venture with Gold Spinners Inc. for the exclusive use of the latter’s gold extractive technology in Nevada. Franco is currently looking for suitable material and a location from which to operate a 300-ton-per-hour processing unit.

At the end of the six months ended Sept 30 the company posted a deficit of $198,000. It had the identical deficit in the same period last year.