An option agreement has been completed between Cornucopia Resources and USX Corp. (formerly U.S. Steel) for a gold property in Nevada. The agreement covers the 13,000-acre- plus Ivanhoe property in Elko Cty. which is said to represent one of the largest land positions in the Carlin gold belt.
Terms of the purchase are $750,000(US) on the effective date, another $1 million by year-end and a final payment of $1.5 million on Nov 30, 1988. The ground is subject to a 5% underlying royalty, the company points out.
Cornucopia says a mineral inventory of eight million tons grading 0.045 oz gold per ton has been established for a small portion of the acreage. This reserve is open to the west and north where exploratory drilling encountered high grade oxide mineralization. Many other promising areas exist which require more detailed exploration.
The company predicts that the oxide reserves might be amenable to low-cost surface mining and heap leach production. Higher grade sulphide material averaging 0.1 oz gold might be amenable to conventional milling techniques, it adds. A spring drilling program is planned.
At the company’s Red Mountain project in southwestern Colorado, an independent consulting firm has come up with an open pit reserve of 12.4 million tons grading 0.027 oz gold and 0.79 oz silver per ton with a 0.6-to-1 strip ratio (waste to ore). Cash operating costs are estimated to be around $203 per oz gold.
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