An initial hole on the Buffalo Valley property in Lander Cty., Nev., has returned gold values in several narrow intersections.
Fairmile Acquisitions (ASE) drilled the hole to test for deep, porphyry-gold mineralization below the existing open pit.
Horizon Gold operated the Buffalo Valley mine from 1987 to 1990, prior to declaring bankruptcy. The former heap-leach operation produced about 60,000 oz. from 1.8 million tons of material.
Fairmile subsequently optioned the property from the underlying owners and can acquire it outright by paying US$1.5 million over five years. Additional work is planned, including 5,000 ft. of reverse circulation drilling and 2,000 ft. of diamond drilling.
The reverse circulation work will test the near-surface gold potential of the front fault, a sub-parallel shear structure west of the Buffalo Valley structure. Both structures are believed to merge at the north end of the pit, where a small, high-grade, underground mine operated from 1924 to 1941. The mine produced about 3,000 tons grading more than 0.4 oz. gold. The diamond drilling will include one deep hole to intersect both the front fault and Buffalo Valley zones at depths of 200 and 800-1,000 ft., respectively.
Fairmile also sees potential for outlining reserves below the current pit and may commission a feasibility study using existing drilling data.
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