Converse resource doubles

A new resource calculation for the Converse gold deposit in Humboldt Cty., Nev., indicates there may be a substantially larger resource than had previously been estimated.

Consulting firm Mine Development Associates, engaged by operator Cameco (CCO-T), estimated the resource based on a 112-hole data set Cameco had provided. The consulting firm calculated an indicated resource of 43.7 million tonnes grading 0.8 gram gold per tonne plus an inferred resource of 31.3 million tonnes grading 0.8 gram based on a cutoff grade of 0.5 gram per tonne. A resource based on a cutoff grade of 0.34 gram per tonne (0.01 oz. per ton) showed 70.3 million tonnes indicated, grading 0.7 gram, and 56.1 million tonnes inferred, grading 0.6 gram.

Cameco inherited its interest in the project when it took over Uranerz U.S.A., which had earlier estimated a resource of 39 million tonnes grading 0.7 gram per tonne, based on a 0.34 gram-per-tonne cutoff.

Cameco and joint-venture partner Romarco Minerals (R-T) are each earning a 25% interest in the project from Newmont Mining (NEM-N). Cameco and Romarco have each approved a US$400,000 budget for work in 1999, which will fulfil their obligations under the option agreement with Newmont. Newmont then has the option of taking over as operator.

Romarco has also announced it is budgeting US$2.85 million for exploration in Nevada this year. The largest piece of the budget, US$1 million, will be spent on the Goldifeld project in Esmeralda and Nye ctys., where Romarco has about 54 sq. km under claims or leases. Romarco will be drilling on structural targets in three phases, the first beginning in mid-May.

At the Red Rock project, west of Goldfield, Romarco has a US$400,000 budget for reverse-circulation and diamond drilling this month. The other major expenditures will be on its new Mustang Canyon property, northwest of Red Rock, which it is leasing from Phelps Dodge (pd-n), and its Jake Creek property, west of the new Midas mine.