Gooseberry contributes to Asamera loss

Operations at the Gooseberry mine and tailings project in Nevada were recently suspended by owner Asamera Minerals (TSE) because the project is not economically viable at current gold and silver prices.

The company said expenses related to the suspension of mining were accounted for in its latest quarter ended Sept. 30, which contributed to a loss from operations of US$1.6 million for the period. The loss also reflects reduced shipments of gold and silver, as production levels were significantly reduced at Gooseberry during the third quarter.

Asamera is best known for its 51% interest in the Cannon gold mine in Washington state. The company produced a total of 20,311 net oz. gold and 76,531 net oz. silver during the 1991 third quarter from all operations, decreases of 15% and 22% respectively from the period a year ago. The company is continuing to explore several promising gold prospects at Meliadine River and Meadowbank, both in the Northwest Territories. Work was done in two areas covering a gold-bearing, sulphidized iron formation associated with a major structure traced for 45 miles along strike. Asamera said promising gold occurrences were found at both the discovery area, and to the west.

Of the 34 holes drilled to test the discovery area, 10 tested the depth extension of the mineralized structure encountered in 1990, with eight of the holes encountering mineralization (at a vertical level of 1,000 ft.). The zone remains open to depth.

Selected results from this drilling include: 1.6 ft. grading 2.95 oz. gold per ton, 10.8 ft. of 0.16 oz., 13.1 ft. of 0.55 oz., 43.6 ft. of 0.16 oz., 9.8 ft. of 0.36 oz. and 18 ft. of 0.28 oz.

Other targets in the discovery area were tested by wide-spaced drilling over a strike length of 3.7 miles. Ten holes are reported to have intersected significant gold values. Selected results from this drilling include: 4.9 ft. grading 0.74 oz. gold per ton; 1.9 ft. of 2.69 oz., 9.1 ft. of 0.09 oz., 9.5 ft. of 0.21 oz. and 18 ft. of 0.09 oz.

As operator of the project, Asamera plans an expanded program to further test these prospects in the first quarter of 1992. The company has the right to earn a 75% interest in a 26,400-acre portion of the property known as the discovery area; a unit of Comaplex (TSE) would then have 25%. Rio Algom (TSE) has the option to earn a 60% interest in a portion of the property by funding $5 million in exploration over the next six years; Asamera and Comaplex would each retain a 20% interest.