Queenstake Resources has optioned its Argus gold property near Bakersfield, Calif., to Childs International, a subsidiary of an Australian mining group. The company will be able to earn a 60% interest for expenditures of $1 million(US) by 1989.
A recent review of reserves on the property showed that the Davenport vein averaged 0.089 oz gold, based on trenching and drilling results. There could be around two million tons of this open pit material with a stripping ratio averaging 4-1. Approximately 400,000 tons of low grade material are indicated in the East Arondo vein grading 0.03 oz at a 2.6-1 strip ratio .
A conceptual mine plan has been established which would include open pit mining and heap leaching. Metallurgical test work showed a 94.8% to 96.5% recovery rate after 96 hours of bottle leaching, notes Queenstake. A detailed drilling program is planned for the Davenport vein structure this year to prove up tonnage and grade. If the program is successful, production feasibility and permitting will be undertaken in 1987, the company adds.
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