Carlin reserves rising to South Africxa proportions

From the rear seat of a helicopter it looks more like the backdrop to a spaghetti western than the site of North America’s latest gold rush.

As the visitor hovers over the open pit mines along the Carlin gold trend, he can almost imagine the smoke signals that appeared from behind the mountains as pony express riders galloped across the sage brush.

But if the panoramic landscape around Elko, Nev., is a throwback to one of Zane Grey’s wild west novels, what lies just below the surface is straight from the pages of a Grimm’s fairy tale.

In a 45-mile stretch of land bounded by Newmont Gold’s Rain mine to just below Rayrock Yellowknife Resources’ Dee mine to the north, some 27 million oz of gold is known to lie in 21 deposits. While that makes Carlin one of the world’s most prolific gold- producing belts, a number of as yet undefined new deposits discovered by Newmont and American Barrick Resources could put Carlin in the same league as some of South Africa’s major gold fields.

Around 60% of Carlin’s known reserves are hosted by the four largest mines currently operating in the area. Those include Newmont Gold Co.’s Gold Quarry (8.5 million oz) and Carlin (4.7 million oz) mines and American Barrick Resources’ more recently discovered Post (4 million oz) and Betze (4 million oz) deposits. Reported reserves

According to a report by Colorado-based geological consultant Peter Maciulaitis, the largest centre of gold reserves is now being developed around American Barrick’s Goldstrike mine where combined tonnage of reported reserves in an area that includes the Goldstrike, Post, Lower Post, Betze, Genesis, North Star, Blue Star and Bobcat deposits, now totals almost 10 million oz.

Other new discoveries including several satellite deposits near Newmont’s Rain Mine could also add significantly to the Carlin inventory.

While New York-based Newmont Mining has been the major presence in this area since it discovered the Carlin deposit in 1963, a number of other companies including American Barrick will substantially increase their contribution to the world’s gold inventory by mining their own Carlin properties.

In a rapid-fire series of announcements that followed a takeover bid by Texas oilman T. Boone Pickens, Newmont said increased production from the Nevada gold trend will make it North America’s largest gold producer with one million oz by 1989.

As reported (N.M., Oct 26/87), Newmont’s Carlin reserves currently stand at 20 million oz, with 14 million oz proven and probable but the company says it will spend $14 million per year over the next five years to boost that reserve total. Post deposit

Under pressure to undermine T. Boone Picken’s recent takover bid, Newmont reached a tentative agreement with Barrick to mine the surface oxide and deeper sulphide reserves of the Post deposit from a huge open pit and mill from two separate locations.

Newmont’s side of the Post deposit is currently estimated at 1.2 million oz gold in the proven and probable category (Barrick’s side stands at 20 million tons of 0.053 oz), says Newmont President T. Peter Philip.

But with three drill rigs exploring below Newmont’s Post claims local experts expect an expansion of those reserves probably by the end of this year. According to Philip, surface ore at Newmont’s Post deposit will be treated at a rate of 4,000 tons per day starting in 1989.

After beginning an aggressive exploration program in January at its Goldstrike property which had a production average of about 40,000 oz between 1983 and 1985, American Barrick recently discovered the deep Post and Betze deposits.

According to a Barrick report, initial reserve calculations indicate that the Deep Post has a probable reserve of 2.8 million tons at a grade of 0.39 oz and an additional possible reserve of 2.7 million tons at 0.40 oz. Reserve update

Barrick says the Betze deposit contains a probable reserve total of 3.7 million tons at 0.22 oz and a possible reserve of 4.2 million tons at 0.21 oz. (Barrick’s Goldstrike exploration manager Larry Kornze says his company is about to run another reserve update which will move Betze’s 4.2 million pos sible reserve estimates into the probable category).

Combined with production from Barrick’s Post open pit, ore from the Betze and deep Post could increase the company’s Goldstrike production rate from 52,000 oz this year to a minimum 450,000 oz by 1991.

To achieve that, Barrick must mine both surface and high grade Post reserves simultaneously. While Barrick officials say the deep Post and Betze deposits could be mined from huge open pits, an underground bulk mining operation looks more likely.

In preparation for an underground program, the company is currently drilling four test holes to determine the site of a 2,000-ft production shaft which could be located 1,200 ft south of the Betze deposit. A final decision on the shaft site will be made within two weeks, said Kornze.

He said tentative plans include driving off a dual purpose access drift from the 1,200-ft level. Located just above the deep Post deposit, the drift would be used for dewatering purposes and to drill the Betze deposit which is still being developed.

While American Barrick was attempting to come to terms with the size of its new found gold reserves, the Vancouver partnership of Cornucopia Resources and Galactic Resources was increasing its Carlin land position from 13,000 to 100,000 acres.

According to Cornucopia President Ben Johnson that effort will pay off when production begins at the joint-venture partners’ Ivanhoe property.

Located northwest of Rayrock Yellowknife’s Dee mine the huge Hollister deposit at Ivanhoe will produce between 50,000 and 100,000 oz from open pit production starting in late 1988 and increase from there, the company says.