Newmont active at Ivanhoe venture

With leaching continuing at the Ivanhoe joint venture in Nevada, Cornucopia Resources (TSE) reported net earnings for the quarter ended Sept. 30 of US$76,000 on sales of US$643,000.

Now a joint venture owned by Cornucopia with 25% and Newmont Mining (NYSE) with 75%, the Ivanhoe property produced 7,366 oz. gold during the third quarter from residual leaching at the old Hollister mine.

The mine is not expected to begin operating again until exploration and development are completed on the remaining deposits in the Hollister mine area.

Newmont acquired its 75% interest in the 84,000-acre property earlier this year, paying Cornucopia US$6.7 million for a 25% interest and Galactic Resources (TSE) US$13.4 million for its 50% interest.

Newmont is directing exploration efforts and to date has spent US$677,000 out of a second-half budget of US$1.6 million.

The work included an airborne geophysical survey over the property as well as a geochemical survey covering about 70 square miles of ground. Newmont also completed a 32-hole near-surface drill program on the joint venture to follow up a number of targets generated by the surface work as well as to fulfil assessment requirements.

Newmont’s principal interest in the property is its potential to host deep, high-grade reserves similar to those found at the Newmont and Amer. Barrick Resources Carlin operations to the south.

Exploration plans for the fourth quarter include a 4-hole deep drilling program in the vicinity of the Hatter Dome where previous deep drilling has encountered a large intrusion.

Cornucopia and Galactic drilled seven deep holes earlier this year for a total of 13,128 ft. Of the five holes targeted on the Hatter intrusion, three returned mineralized intersections at the contact zone of the intrusion and the surrounding Paleozoic sediments. One hole returned 10 ft. grading 0.25 oz. gold per ton at a depth of 1,720 ft. with a further drill intercept of 10 ft. grading 0.73 oz. gold at a depth of 2,430 ft.

The fourth-quarter drilling will target structural zones along the margin of the Hatter intrusion.

Planned work will also include close-spaced ground magnetic and gravity surveys in the Hatter area to identify subsurface structural features which might host gold deposits.

Cornucopia is well funded to cover Newmont’s exploration plans on the property with more than US$7.7 million in working capital and no debt. Cornucopia is also reviewing several potential acquisitions with a prerequisite of providing early cash flow and growth potential.