An extension has been secured by Granges Exploration to acquire 3.3 million shares of Ican Minerals on a share exchange basis. Citing “unavoidable delays encountered in acquiring drill hole samples for check assaying,” the two companies claim the metallurgical test program announced earlier has not yet been completed.
Even so, more than 1,600 initial samples have been analysed from the main zone and recoveries have averaged from 60%-70% with cyanide as the extraction medium. More than four tons of samples have been submitted and they confirm the “analyses for cyanide soluble gold are progressing well.”
Granges says manual calculations have “essentially confirmed the mineable reserves in the main zone calculated by computer by Bechtel and American Mine Services.” But Granges states the waste-to-ore stripping ratio is approximately double at 0.85-to- one which is acceptable.
Based on cyanide soluble gold analysis for approximately 25% of the main zone, mineable reserves are estimated to be 10 million tons averaging 0.034 oz gold or 0.023 oz cyanide soluble.
Column tests are under way to determine actual gold recovery by heap leaching. Test samples will include minus 4-inch material, minus 2-inch, and minus 1/2 -inch; Granges believes sufficient data should be available by May 27 to “project recoveries with an acceptable degree of confidence.”
A Granges subsidiary, Hycroft Resources & Development, expects to place a $15-million(US) bond issue due in 1992. It will be exchangable for gold bullion and guaranteed jointly by Granges and Hycroft. The latter has agreed to issue shares to Granges for guaranteeing the financing.
Granges has a 56% interest in Hycroft which owns and is developing the Crofoot mine project in Nevada. The proceeds of the Euro- bond gold convertible issue will be used to develop the project at an estimated cost of $20 million(US).
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