St. George seeks private placement to start gold mine

St. George Minerals says a private placement is being arranged to bring the company’s Fisher gold project into production in 1987. The property is 1.5 miles northeast of its Dean mine property in Nevada’s Battle Mountain area. The Dean mine had a recorded production of 60,000 oz gold and a recovered grade of 0.4 oz per ton. Access has been gained to the mine’s underground workings and a sampling program completed. Surface trenching, geophysics, and road building were also done. Inferred reserves on previously mined veins are estimated to be 200,000 tons at 0.4 oz, the company claims. Veins at surface have been traced more than 5,000 ft along strike but only a tenth of that was mined, the company points out.

A mineralized zone has been exposed over 1,700 ft at the company’s Fisher gold project. The mineralization is near surface and it apparently goes to depth. “Noranda drilled several holes on the fringes of the orebody in 1980 to intersect strong mineralization, the best being 25 ft of 0.19 oz gold,” says the company.

St. George feels the property could one day represent a viable heap leach situation, noting it will be a”first priority project.”