Recent drilling on the Mexican Hat property by a unit of Placer Dome (TSE) encourages owner Oneida Resources (VSE) to predict reserves on the Arizona gold property will increase. Placer Dome is funding all engineering and development costs up to the feasibility stage at which time Oneida may participate according to its 40% interest, or it may revert to a 25% carried interest.
Oneida’s latest estimate of geological reserves includes two zones; the 16 Zone containing two million tons grading 0.045 oz. gold per ton and the Victoria Fault Zone estimated to contain three million tons grading 0.033 oz.
The recent drilling results are from the 16 Zone and the 92 Zone which the company believes form a single unit. Both Placer Dome and Oneida are calculating new reserve figures. Interval Intercept Grade Hole (ft.) (ft.) (oz./ton) MHC-16 94-185 91 0.058 295-31520 0.028 330-345 15 0.019 445-470 25 0.016 490-520 30 0.013 520-559 39 0.028 MH-90-102 100-120 20 0.021 375-385 10 0.028 415-460 45 0.050 470-515 45 0.029
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