California Gold Mines says results from the first exploration phase of the Alpine mine area of its Zaca gold project in California, point to the potential for a high grade underground deposit.
The company says this deposit could be developed in conjunction with the open pit heap leaching operation planned for the Stewart outcrop zone.
President David Reesor says during the recent exploration program some 14,900 lineal ft of drilling were completed, and 600 ft of old underground workings were re-opened and sampled.
Two mineralized zones have been outlined with a strike length of some 1,000 ft, with the zones open along strike and to depth.
Mr Reesor says the next exploration phase for the Alpine mine area will be an underground bulk sample program, which will determine mineable ore grades and tonnage. It will begin in the first quarter this year.
Discussions are ongoing on project financing for the open pit, heap leach operation planned for the Stewart outcrop zone, he adds. Mineable reserves for this zone are 9,406,000 tons averaging 0.029 oz gold per ton, and 0.57 oz silver.
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