At the Illinois Creek property in Alaska’s interior, drilling by USMX (TSE) has confirmed the presence of the gold-silver resource previously calculated.
The property, situated within 62,480 acres of mining leases, contains a drill-indicated geologic resource of 6.4 million tons grading 0.07 oz. gold and 1.5 oz. silver per ton, based on a 0.02-oz. gold cutoff. The mining reserve is estimated at 3.9 million tons averaging 0.088 oz. gold and 1.7 oz. silver. Preliminary engineering and metallurgical studies indicate the deposit is amenable to open-pit mining and heap leaching, with a gold recovery estimated at 85%. Bulk samples are undergoing further test work, and a preliminary feasibility report is expected to be completed by mid-December.
Significant results from the recent 36-hole program include 70 ft. of 0.36 oz. gold and 6.11 oz. silver in hole 94-24, 65 ft. of 0.2 oz. gold and 1.79 oz. silver in 94-13, 25.5 ft. of 0.19 oz. gold and 0.43 oz. silver in 94-6, and 28.7 ft. of 0.18 oz. gold and 0.81 oz. silver in 94-1.
If USMX proceeds with development and production, it must pay US$4 million in common shares to North Pacific Mining, an Alaskan native corporation. North Pacific, in turn, retains a 25% working interest which can be converted into a 5% net smelter return royalty.
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