In something of a coup, a little known junior Canadian mining company, Monte Carlo Gold Mines, has obtained the exclusive mining concession to this beautiful Dutch island in the Caribbean Sea just 15 miles off the coast of Venezuala — an island that has had a rather fascinating early history of gold mining dating back to 1824.
Headed by Gordon Leliever, a protege of the late prospector and mine finder Murray Watts but now a prospector and promoter in his own right, this company seems off to a good start. For it has already come up with a rather spectacular gold discovery in a strong quartz vein that apparently had been overlooked by the oldtimers.
Encouraged by what has been seen to date, the company is assembling a team of Canadian experts to carry out a recommended $2.5 million exploration program covering the entire island. This will be the first time modern mine finding techniques will be employed there.
For starters, it has just let a contract to Ontario-based Terraquest Ltd. to carry out an airborne electromagnetic (vlf) and magnetic survey of the entire island at an estimated cost of $250,000. Preliminary results are expected within 30 days and will be followed up by ground geophysics over selected areas that will then be geologically mapped in detail, followed by soil sampling. Certain known occurrences are already earmarked for some percussion drilling, and likely deeper diamond drilling.
A major sampling job lies ahead, for there are something like 200 known quartz veins, some of which certainly carry gold values. Too, there are extensive alluvial deposits in the roois or gulches in which the natives found many gold nuggets in the past, some weighing up to 28 lbs.
“There’s a helluva lot of gold on this island,” K. Brent Cook, an exploration geologist from Australia who is examing the Caribbean islands for the group that discovered the big Lihir gold deposit in Papua New Guinea told The Northern Miner.
Establishment of an assay office on site is to get top priority. This will be built by the company, but initially operated independently by Barringer Magenta Ltd. Early mining
Although actual production figures are hard to come by, it is obvious that considerable mining work was has been carried out on this island — most before the turn of the century. Indeed many of the old workings can still be seen. These have yet to be adequately evaluated using modern mining techniques.
Panning for gold by the natives was halted in 1854 by government decree, at which time British mining firms moved in, constructing two mills. One of these, a 20-ton stamp mill, was operated with ore from what is known as the Mira La Mar vein which was mined down to a depth of at least 650 ft through a small non-timbered shaft that went down on the ore. Indicated grade of this small operation was around one ounce.
Then in 1872 the Aruba Island Gold Mining Co. built a larger plant on the north coast and mined for about 10 years, the remains of which are still standing and have become quite a tourist attraction. It also built and operated a 4-mile steam railway to haul ore from a number of small operations.
All mining ceased in 1916, to which time some 35,000 oz of gold had been produced.
No work whatsoever was carried out until 1948, when a further effort was made to evaluate the island’s mining potential, using diamond drilling for the first time. But that project was soon abandoned due to certain logistical problems coupled with financing difficulties.
Then in 1986 Canarub Gold Development N.V., financed largely by private Canadian interests, sampled the mill tailings with a view to establishing an ore reserve that could be immediately processed. That work resulted in a proven reserve of 41,000 tons averaging 0.026 oz that could be heap leached. But that in itself was deemed too small to be economic.
Monte Carlo, which obtained its concession in late January, 1987, is eyeing these tailings that would be treated in conjunction with alluvials, of which there could be a substantial tonnage of as yet undetermined grade. However, limited work on these has proved quite encouraging, with four recent samples of this weathered soil taken from what is known as the Boca Mahos arroyo (valley) all assaying over one oz per ton. There could be as much as 800,000 tons of this material immediately available here, Neil Novak, the company’s head geolgist, tells The Northern Miner.
But it is still the potential of the in situ gold that has caught the fancy of geologist Novak, who classifies these deposits as of epithermal origin, somewhat similar to those of Papua New Guinea in the South Pacific.
Certainly the geology appears to be complex, with quartz veining running every which way within a quartz diorite. These veins vary from a few inches up to four or five ft in width, and can often be seen on surface extending for several thousands of feet and to unknown depths. Much of this quartz material, as observed, appeared barren of visible gold. But some of these, unquestionably, carry gold values, some of which can occur in unusually rich concentrations.
Finding the key to these occurrences is the job that lies ahead — one that management is determined to do. In fact the company is already gearing for a long stay on the island, having just purchased a large office and warehouse complex on the outskirts of Oranjestad, the capital port and seat of government close by its international airport.
The shares of Monte Carlo, listed on the Alberta Stock Exchange, have risen sharply in recent weeks in active trading, currently in the $7-$8 range.
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