Vancouver Newcrest Resources, a wholly owned subsidiary of Australian-based Newcrest Mining (CRN-A), has secured rights to earn a 70% interest in Rio Fortuna Exploration’s (RFT-V) Highland gold-silver project in Nevada.
Highland is one of four projects held by Rio Fortuna in the Walker Lane trend of Nevada, a belt of favorable rocks hosting numerous multi-million-oz. gold deposits. The Highland project was explored and partially developed in the 1930s, when local miners produced an estimated 10,000 oz. gold using shallow adits and shafts. During this period the project became known for its ‘bonanza-type’ gold-silver mineralization. The low-sulphidation gold-silver project is now viewed as prospective for ‘Midas or Sleeper-type’ deposits.
The 206-claim gravel-covered property includes a number of recently discovered targets, including ones being explored by Rio Fortuna. Among the ‘bonanza-type’ targets is the A zone, where reverse-circulation drilling in 2003 returned 66.9 grams gold and 397.7 grams silver per tonne over 1.5 metres. This intercept was within a 12.2-metre section of 9.5 grams gold and 109.4 grams silver.
Newcrest must spend US$5 million on exploration and produce a feasibility study within five years to earn its 70% interest. Rio Fortuna will then have to choose among various options to fund its share of development costs.
Rio Fortuna is also exploring for high-grade gold deposits at its Baxter, Mud Spring and Buz projects in Nevada, and at its Drayton project in Ontario, which is an Archean vein-type prospect.
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