Granges, Cameco exploration initiative

Toronto-listed Granges can acquire a half interest in a 432-claim gold property within the Goldfields mining district of southwestern Nevada.

According to a letter of intent signed with a U.S. subsidiary of Cameco (TSE), Granges must spend US$1.5 million on exploration over four years. Geophysics and drilling, to begin shortly, are expected to concentrate in and around areas of mineralization adjacent to old workings.

The Goldfields district has produced more than 4 million oz. gold from epithermal veins and breccias.

In other news, Hycroft Resources and Development (TSE), a 50.5%-owned subsidiary of Granges, announced gold production of 69,460 oz. for the first nine months of 1994 at its Crofoot-Lewis mine in northwestern Nevada. This signifies a 7% increase in gold production, compared with the same period in 1993, and is directly attributed to the additional output of trial leaching of uncrushed run-of-mine ore. Production previously was limited by the capacity of the crushing plant.

A drilling program of 140,000 ft. is at the halfway point and, as of Oct. 1, 1994, proven and probable reserves for the Crofoot-Lewis mine increased to 57.8 million tons grading 0.019 oz. gold per ton.

Drilling along the Central Fault structure increased the mineral resource to 12.1 million tons of 0.019 oz., including a proven and probable reserve of 4.7 million tons averaging 0.017 oz. with a stripping ratio of 1.1-to-1. The Brimstone pit increased in size through drilling and re-engineering so that sufficient new ore will be added to at least replace the ore mined during 1994.

Drilling is testing the southern extension of the South Central pit. A recent notice of default, filed by the lessor of the Lewis portion of the Crofoot-Lewis mine, has been rejected by Granges and Hycroft as being without merit or substance and will go to arbitration. These complaints will have no effect on current mining operations.