Drilling on the Dewey property in central Idaho has returned significant gold intersections, one such intercept as high as 0.097 oz. gold per ton across 195 ft.
USMX (NASDAQ) optioned the property earlier this year, committing to spend at least US$200,000 by April 1, 1994. It has the right, until April 1, 1995, to buy the property for US$5 million.
The drilling is intended to test the deposit’s potential for hosting a higher-grade reserve within the current reserve, which is estimated at 5.2 million tons grading 0.045 oz.
USMX cites Holes DR-002, 3, 4, 6, 7 and 8 as representative of the higher-grade core of the deposit (see accompanying table).
Based on results to date, the company sees good potential in boosting reserve grade and expanding the deposit along strike into an area not previously drilled.
Bulk samples have also been taken, and are being tested by Hazen Research in Denver, Col.
Past mining in the area proved gold and silver could easily be recovered by gravity methods using only water.
Although the higher-grade assays were cut to 0.5 oz., the company says it needs to conduct further studies to determine if the higher-grade sections can be included in reserve calculations without cutting grade. Drilling results are as follows:
Hole Interval Width Grade Cut Grade
(ft.) (ft.) (oz. per ton) (oz. per ton)
DR-001 0-300 30 0.033
100-185 85 0.054
255-285 30 0.046
DR-002 60-255 195 0.097 0.062**
DR-003 75-275 *** 200 0.091
DR-004 15-285 *** 270 0.10 0.075**
DR-005 75-120 45 0.035
145-260 115 0.062
DR-006 25-260 235 0.096
DR-007 95-240 145 0.12 0.097**
DR-008 70-265 195 0.20 0.064**
DR-009 75-125 50 0.035
210-325 *** 115 0.053
DR-010 80-170 90 0.035
215-290 75 0.036
DR-011 105-175 70 0.065
DR-012 lost in alluvium
DR-013 0-140 140 0.042
210-275 65 0.051
DR-014 35-150 115 0.056
DR-015 0-115 115 0.050
DR-016 0-150 15 0.036
75-100 25 0.057
DR-017 0-500 50 0.030
DR-018 0-650 65 0.043
DR-019 55-700 15 0.033
165-220 55 0.064
DR-020 0-850 85 0.060
220-245 *** 25 0.050
** assay cut to 0.50 oz. per ton
*** hole bottomed in mineralization
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