NEVADA SPECIAL — Mineral Ridge advances through permitting

Having completed a feasibility study on its Mineral Ridge gold deposit in western Nevada, Cornucopia Resources (CNP-T) is applying for permits.

Cornucopia expected to have an environmental assesment drafted for public comment by June 1.

“We don’t see any difficulties at this point,” says James Currie, vice-president of mining. “There are no problems such as acid mine drainage or threats to endangered species.”

The property is situated in a historic mining district near the town of Silver Peak, about 35 miles southwest of Tonopah, in Esmeralda Cty.

Approvals for the $16.4-million mine project are expected in mid-July. The company says construction could begin in August and that startup would follow in the first quarter of 1997.

Mineral Ridge hosts proven and probable minable reserves of 5.1 million tons averaging 0.068 oz. gold per ton contained within several deposits. Open-pit mining techniques will be used at an overall stripping ratio of 4.32 tons waste to each ton of ore.

The ore will be crushed to 100% minus 8-mesh in a 4-stage crushing circuit, and then agglomerated and stacked on a pad where gold will be recovered by standard heap-leach methods.

Extensive metallurgical testwork has been carried out, and gold recoveries of more than 80% are expected on a life-of-mine basis.

The mine will operate at a production rate of 2,700 tons per day, for a mine life of 5.5 years, based on current minable reserves.

Annual gold production will range between 45,000 oz. and 56,000 oz. per year.

Cash costs are estimated to average US$222 per oz. over the mine’s life.

Ongoing exploration will attempt to expand reserves and thereby extend the life of the mine.

Mineralization at Mineral Ridge occurs along low-angle faults that cut pre-Cambrian metasedimentary rocks. Host rocks are metamorphosed shales, quartzites and limestones of the Wyman formation. Gold occurs as electrum and native gold. Some galena, sphalerite and minor arsenopyrite and molybdenite are found.

On the financial front, Cornucopia raised $12 million by selling special warrants, each of which is exchangeable for one common share and half a share purchase warrant. The funds will be used for mine construction at Mineral Ridge and exploration in Africa.

The company postponed development of its Ivanhoe gold property in the northern Carlin trend after Newmont Gold (NGC-N) announced its intention to relinquish its 75% interest.

Cornucopia may seek a new partner for the project in order to focus on exploring for deep gold targets at depths ranging from 600 ft. to more than 4,000 ft. from surface.