Newhawk, Granduc double reserves

A systematic and thorough approach to exploration by project operator Newhawk Gold Mines (TSE) has brought about an impressive increase in proven and probable reserves for the West zone on the Sulphurets gold-silver property north of Stewart, B.C. Partners Newhawk (60%) and Granduc Mines (TSE) say proven and probable geological reserves have doubled from previously reported figures to 715,400 tons grading 0.43 oz. gold per ton and 19.70 oz. silver.

Don McLeod, president of Newhawk, said the new calculations by the consulting firm Watts, Griffis and McOuat for the West zone include reserves for the adjacent and accessible R-8 zone discovered during the 1989 program. The Toronto-based firm was not requested to calculate or report on possible reserves.

“With 177,300 tons of 0.62 oz. gold and 12.4 oz. silver, the R-8 discovery contributed a lot to our improved reserve picture,” McLeod told The Northern Miner. “And it’s still open.”

The latest calculations used a cutoff grade of 0.20 oz., and a minimum true width of five feet. Newhawk also noted that the figures acknowledge cut values along a straight line curve which was constructed following histogram study and plotting high gold and silver values against sample width.

Newhawk said the report by Watts, Griffis and McOuat was delivered for mine planning to Cominco Engineering Services which is near completion of a feasibility study for the Sulphurets project.

“We’re hoping to have delivery of the feasibility study in early March,” said McLeod, adding that it will contain calculations for minable, proven and probable reserves.

The potential to increase reserves is considered by Newhawk to be excellent. Although the West zone has been steadily expanded by exploration laterally on strike and in depth, it has not yet been closed off in any direction.

Newhawk said the report expressed confidence that further exploration would result in the discovery and definition of additional gold and silver deposits on the Sulphurets property.