St. George acquires Nevada gold prospect

St. George Minerals has reached an agreement to acquire the Dean mine property located two miles southeast of its Fisher gold project in Nevada’s Battle Mountain area. President Frank Varseveld claims the company has a “good handle on the high grade reserves in the mine,” which he estimates average 0.4 oz gold per ton.

A preliminary estimate of over- all reserves between the 500- and 1,000-ft horizons suggests there could be approximately one million tons along 400 ft of vein structure that was worked by previous operators, not all of it high grade. The surface vein trace is much longer than that, however, suggesting considerably more potential exists than was previously recognized.

The company has identified an investor in Europe willing to finance the venture and the money would be used for a winter exploration program. Barringer Geoservices of Denver is the company’s technical consultant and a major shareholder.