Aur drops Turner-Albright after metallurgical tests

Over the next few weeks, Savanna Resources (ASE) will attempt to answer some of the questions regarding its Turner- Albright massive sulphide project in southern Oregon.

After receiving results of metallurgical tests on bulk-sample material, Aur Resources (TSE) recently informed Savanna that it wouldn’t be exercising an option to earn 51% of Turner Albright.

Aur is now the third company in 10 years to relinquish an option on the Turner-Albright project which is on the side of a hill on the Oregon- California state line. The other two were Noranda Exploration and Rayrock Mines.

Before Aur optioned the project, a preliminary estimate of reserves to a depth of about 1,200 ft. stood at 3.3 million tons grading 1.46% copper, 3.32% zinc, 0.055% cobalt, 0.44 oz. silver per ton and 0.114 oz. gold. Those reserves are contained in two separate zones.

According to Aur Vice-President Howard Stockford, his company wasn’t prepared to risk the money needed to install the pressure leaching technology at the project. Metallurgical tests indicate that a saleable concentrate cannot be made from material extracted from Turner-Albright’s upper zon e using conventional milling and flotation methods. Using conventional methods, Aur achieved recoveries of up to 80% for copper and 65% for zinc on the lower zone. “About half of the gold is recoverable in the copper concentrate and about 15% is recoverable from cyanidation of the tailings,” Aur says.

Profits derived from the project may not be sufficient to justify the projected cost (around $12 million) of bringing in an autoclave unit and other technology, Stockford told The Northern Miner.

However, Savanna President John Alston said he is pleased that Aur has added an additional 387,000 tons grading 0.175 oz. gold, 1.09% copper and 2.32% zinc of new reserves to the lower zone.

With Aur now out of the picture, Alston will take another look at the economics of pressure leaching which was previously recommended by the U.S. Bureau of Mines. Finding another partner to finance future exploration at Turner- Albright is also considered a priority.

Meanwhile, Aur still holds about 300,000 Savanna shares which have fallen in value from $1.10 in October to 33 cents on the Alberta exchange. Aur bought the shares for 50 cents each.