VANCOUVER–A new resource estimate for StrataGold’s (SGV-T, SAGDF-O) Dublin Gulch project in the Yukon has added 700,000 oz. gold to the indicated count.
StrataGold punched 15 diamond-drill holes totalling 4,250 metres into the Eagle zone at Dublin Gulch last year. The new holes extended the zone along strike in both directions and, according to a new resource estimate, it was enough to boost the deposit’s indicated resource by 37%.
The Eagle zone now carries 98.6 million indicated tonnes grading 0.85 gram gold per tonne, plus 2.02 million inferred tonnes averaging 0.67 gram gold, using a cutoff grade of 0.5 gram gold per tonne. Together, the indicated and inferred resources contain 2.73 million oz. gold. If the cutoff is lowered to 0.3 gram gold, indicated resources climb to 164.9 million tonnes grading 0.67 gram gold.
The resource incorporates data from more than 13,000 metres of drilling completed between 2006 and 2008 at Dublin Gulch, which sits in the north-central portion of the Tintina gold belt, 85 km northwest of the village of Mayo. Mineralization at Dublin Gulch is described as being similar to that at Kinross Gold’s (K-T, KGC-N) Fort Knox gold mine in Alaska.
The other major deposit at Dublin Gulch is the Mar tungsten deposit. In early December, Strata- Gold announced the results of a preliminary economic assessment for Mar, which considered a 3,000- tonne-per-day operation. Mar hosts 12.7 million indicated tonnes grading 0.31% WO3 plus 1.3 million inferred tonnes averaging 0.3% WO3.
The scoping study gave the Mar project a 15.5% internal rate of return and a net present value of US$24 million, using an 8% discount rate. Over an 11-year mine life, the operation would produce 45,725 tonnes of tungsten trioxide concentrate, at an average grade of 85% WO3. Capital costs to develop the operation were estimated at US$76 million, including the cost of building a 20-km power line to connect to the Yukon power grid.
StrataGold is also interested in Guyana. The company has been exploring its Tassawini gold property there since 2005 and has delineated a resource of 10.8 million indicated tonnes grading 1.3 grams gold plus 1.9 million inferred tonnes grading 1 gram gold. Tassawini is 175 km northwest of Georgetown.
But StrataGold’s focus in Guyana is not limited to Tassawini. The company is also advancing the BRL Venture there, a 50-50 joint venture with Newmont Mining (NMC-T, NEM-N). Over the past few years, the partners’ prospecting effort covering some 4,000 sq. km led them to two key project areas: Monosee and White Creek.
At Monosee, which is 45 km west of Tassawini, work in the latter part of 2008 focused on three targets: the Arakaka trend, Aviao and Gomes. Within the Arakaka trend, a zone called Purple Heart returned the most promising results.
Purple Heart is characterized by deformation with disseminated gold mineralization in alteration zones with associated quartz veining and sulphides. Recent trenching and drilling efforts revealed two separate high-grade quartz veins, both of which contain visible gold.
Trenching returned results that included 34 metres grading 2.98 grams gold, 27 metres of 3.14 grams gold, 21 metres grading 2.6 grams gold, and 8 metres of 2.51 grams gold. In follow-up diamond drilling, hole 1 cut 13.5 metres grading 7.37 grams gold from 86 metres depth, hole 4 hit 20.5 metres grading 0.52 gram gold from 30 metres down-hole, and hole 5 returned 1.66 grams gold over 10.8 metres, starting 17 metres below surface.
At the Aviao target, which is characterized by zones of intense quartz veining in the vicinity of a regional intrusive-metasediment contact, trenching also returned prospective results. Trench results included 16 metres grading 2.15 grams gold, 66 metres averaging 0.61 gram gold, and 50 metres of 0.66 gram gold. Diamond drilling failed to confirm the trenching results.
And at Gomes, which is 2 km west of Aviao, trenching in and around the area’s numerous small-scale operations helped the company to better understand the underlying geology but failed to return significant results.
StrataGold recently traded at 4.5¢ per share in a 52-week trading range of 1-33¢. The company has 185 million shares outstanding.
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