Junior Golden Queen Mining (TSE) has taken its Soledad Mountain project off the selling block and intends to develop the project as expeditiously as possible.
The open-pit, heap-leach project, situated near Mohave, Calif., hosts a proven and probable reserve of 15.6 million tons grading 0.029 oz. gold and 0.53 oz. silver per tonne, or 0.036 oz. gold-equivalent, at a stripping ratio of 3-to-1.
Golden Queen is continuing with permitting and metallurgical testwork in an effort to advance the project towards development.
Earlier this year, Glamis Gold (TSE) walked away from a proposed merger with Golden Queen. After completing a due diligence review, Glamis concluded that, while the project was economic on a stand-alone basis, the cost of acquiring it could not be justified.
Metallurgical testwork by Glamis confirmed a short-term recovery rate of more than 70% for gold. Golden Queen contends that an 80% gold recovery can be achieved over a 340-day leach cycle.
In March 1995, Golden Queen added a parcel of land called the Karma Wegmann property to its Soledad Mountain package. Previous drilling identified an additional 2.5 million tons grading 0.03 oz. gold-equivalent with a stripping ratio of about 1-to-1.
As part of a current 41,000-ft. drill program, Golden Queen is stepping out on the Karma Wegmann structure on 200-ft. sections towards the northwest. Recent results are somewhat higher than expected and include: 40 ft. of 0.091 oz. gold and 2.2 oz. silver, as well as 155 ft. of 0.032 oz. gold and 0.36 oz. silver for hole 407; 75 ft. of 0.036 oz. gold and 0.91 oz. silver for hole 409; and 75 ft. of 0.11 oz. gold and 1 oz. silver for hole 413.
Recent drilling also tested the Independent vein, a north-south-trending structure which lies between the fully drilled Queen Esther and the Karma. Selected intersections included 35 ft. of 0.026 oz. gold and 0.091 oz. silver, as well as 20 ft. of 0.11 oz. gold and 1.08 oz. silver for hole 412, and 50 ft. of 0.083 oz. gold and 0.3 oz. silver for hole 422. Reserves are expected to be updated in the first quarter of 1996.
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