Daisy could bloom into gold producer

The open-pit proven and probable reserve of the Secret Pass deposit in Nevada is expected to rise to about 18 million tons containing 425,000 oz. gold.

The deposit, managed by Inter-Rock Gold (ME) and Rayrock Yellowknife Resources (TSE), forms part of the Daisy property, which itself adjoins the Mother Lode deposit. Together, the two deposits comprise 370 unpatented mining claims covering 11 sq. miles in Nye Cty.

Reserve and mine development studies are under way, following a reverse-circulation program in which 19 holes were drilled north and northeast of the Secret Pass.

The infill drilling intersected high-grade, oxidized mineralization at depths greater than those previously encountered. Between 240 and 545 ft. below surface, vertical hole D-316 intersected 0.015 oz. per ton over 255 ft. and 0.119 oz. over 50 ft. in oxide mineralization. Furthermore, sulphide mineralization averaging 0.104 oz. was encountered, between 495 and 545 ft. below surface.

Hole D-323 intersected oxidized mineralization averaging 0.011 oz. from 255 to 575 ft., and 0.053 oz. from 575 to 635 ft., followed by sulphide mineralization averaging 0.075 oz. between 635 and 690 ft.

Evaluation studies are to be completed by early April, to be followed by financing and production decisions.

The Mother Lode deposit contains a sulphide resource of 9.4 million tons averaging 0.046 oz. In addition to this and Secret Pass, the Daisy property contains the Sunday Night deposit (with an oxide resource of 2.8 million tons averaging 0.04 oz.) and the West Zone deposit (with an oxide resource of 0.7 million tons averaging 0.027 oz.).

It is anticipated that the entire project will be capable of producing 50,000 oz. per year at an operating cost below US$275 per oz. Startup capital for the project is estimated at US$8 million, and mining will be completed by contractors. The Daisy project is 75%-owned by Inter-Rock Gold, with the remainder held by Rayrock, the operator.