Crown Butte ups gold content at 100% owned New World

An updated preliminary reserve estimate was released by Crown Butte Resources (TSE) for its 100% owned New World gold-silver-copper project in Park Cty., Mont.

The advanced project is being explored and developed by a unit of Hemlo Gold Mines (TSE), which owns 60% of Crown Butte’s common shares. Although final reserves will be calculated in January, the preliminary reserve recalculation shows a modest decrease in tonnage, but an increase in contained ounces of gold.

The New World property is now estimated to contain preliminary reserves totalling 9.8 million tons grading 0.23 oz. gold and 0.91 oz. silver per ton, plus 0.75% copper, or 2.3 million “contained gold ounces.”

The bulk of this tonnage — 6.9 million tons grading 0.29 oz. gold, 1.11 oz. silver and 0.74% copper — is classed as underground reserves at a cutoff grade of 0.1 oz. gold per ton.

The open pit reserve is reported as 2.87 million tons grading 0.09 oz. gold, 0.42 oz. silver and 0.78% copper at a cutoff grade of 0.05 oz. gold. The partners drilled over 74,317 ft. in 110 holes to date in 1991. One rig is still working on surface on the Homestake deposit, where recent stepout drilling is continuing to encounter significant mineralization. The deposit is still open to the east, west and south.

Recent results from drilling in the Homestake include: 379.2 ft. of 0.30 oz. gold per ton; 22.6 ft. of 0.10 oz. gold; 22.2 ft. of 0.10 oz. gold; 43.3 ft. of 0.18 oz. gold; 62 ft. of 0.20 oz. gold; and 28.2 ft. of 0.77 oz. gold. The main Miller Creek deposit, like Homestake, contains underground reserves and is considered delineated and defined.

Underground drilling of the Homestake deposit is expected to begin once the Gold Dust adit is rehabilitated. (The adit is situated beneath the Homestake deposit.)

Part of the historic mine workings, the adit was found to be more extensive than shown on existing maps. Initially four drill stations are being cut, and two rigs are scheduled to begin drilling in mid-January, 1992.