Gunsteel looks to restart nugget gold production

Gunsteel Resources — says the underground exploration program at its Nugget gold property near Salmo, B.C., is progressing with very positive results. The present work is being concentrated in the area of the Nugget/Calhoun vein system where underground work can be carried on throughout the winter.

Sample results from the Calhoun vein on the No 4 level ranged from 0.02 oz gold over 1.9 ft to 1.8 oz across 1 ft. Other values included 1.5 ft of 0.94 oz; 3 ft grading 0.74 oz; 4.2 ft of 0.41 oz and 3 ft averaging 0.34 oz. Results from the Nugget vein at the 100 sub-level were also impressive. They ranged from 0.06 over 3.3 ft to 0.75 oz across 3.3 ft. Additional samples included 0.54 oz over 3.3 ft; 0.48 oz across 2.6 ft and 3 ft of 0.41 oz.

The ore zone on the No 4 level of the Calhoun vein is 160 ft below an existing ore zone on the No 3 level which averages 0.38 oz gold over a width of 2.8 ft and a length of 290 ft. Another drift is planned shortly on the Calhoun vein some 425 ft below the one now being driven on the No 4 level. Access to the Calhoun vein at these levels is relatively easy from existing workings, the company states.

Ore grade material is being encountered on the 100 sub-level sooner than expected. This area appears to represent a downward projection of an ore zone which was mined previously on the No 4 level about 100 ft above.

Expenditures on the Nugget property since last July have totalled about $300,000. Ore reserves at the start of the program were estimated at 38,000 tons grading 0.38 oz gold per ton with another 20,000 tons grading 0.2 to 0.41 oz available on other parts of the property.

Gunsteel says that with the excellent ore grades being encountered on the Nugget/Calhoun vein systems and with 20 other known veins on the property, “the opportunity to increase reserves sufficiently to put the property back into production is excellent.”