Newmont makes discovery at Carlin

Already one of the largest gold producers in Nevada’s prolific Carlin trend, Newmont Gold (NYSE) is busy outlining another sizable resource on a block of ground just north of its Carlin pit.

The major has a 60% interest in the property, with joint-venture partner High Desert Mineral Resources of Nevada holding 40%. A private company run by Sean and Lee Halavais, the junior staked the ground 10 years ago, when it picked up unowned land around the Carlin trend. The joint venture with Newmont was formed in December, 1991.

The Halavaises also control a large portion of High Desert Mineral Resources (VSE), a separate company involved in an exploration joint venture with Barrick Gold (TSE) immediately east of the new project.

At the Newmont joint venture, exploration to date has located three target areas: the Leeville Corridor, the Hardie Footwall and the Four Corners deposit.

The Leeville Corridor is an area of mineralization extending north-northwest along the Leeville fault. Drilling on the West Leeville, the high-grade portion of the deposit, has already returned some exciting numbers. One hole encountered 33 ft. grading 1.12 oz. gold per ton, while others intersected 100 ft. of 0.63 oz. and 212 ft. of 0.4 oz.

High-grade, stratabound mineralization generally trends north-south, measuring more than 3,000 ft. in length and 400 ft. in width. The carbonaceous, sulphidic ore exists at a depth of about 1400-1900 ft. and is isolated within the Roberts Mountain formation in lower-plate rocks. The ore would be processed through Newmont’s new No. 6 mill.

To gain access to the deposit, operators will sink a decline off Newmont’s Carlin East underground operation. The decline will run northeast to the Hardie Footwall extension and angle in a northwesterly direction to the West Leeville.

Newmont also plans to place 2 million oz. gold in the proven and probable category for the West Leeville high-grade area. The average grade is expected to vary from about 0.38 to 0.6 oz. per ton, says Sean Halavais. Currently, nine drill rigs are conducting infill drilling on a 200-ft. spacing.

The Hardie Footwall extension is near existing Newmont workings. Halavais says the deposit was found by accident, when Newmont followed mineralization out of its Carlin pit up to the property line. That led to concentrated exploration drilling to delineate the mineralization. Drifting in the underground portion of the Carlin East has come close to the High Desert joint-venture property line.

The Four Corners deposit is just west of the high-grade Leeville target area, and the potential for finding more exploration targets is considered excellent.

Meanwhile, not far away, the High Desert Mineral Resources-Barrick joint venture has completed geological, geophysical and geochemical surveys. Several targets were identified, and the joint venture is to begin in August.

Barrick owns 31% of the joint venture; High Desert controls the property and is conducting exploration. Barrick will become operator following the feasibility stage. Meanwhile, Newmont is watching the situation closely as it holds an option to buy a 25% interest in the venture.

High Desert is not the only small company active on the Carlin trend. Vancouver-listed Silver Eagle Resources owns the High Dollar gold property southwest of Newmont’s Gold Quarry pit. Mineralization at the High Dollar lies more than 1,000 ft. below surface. Geologic mapping and ground geophysics have led to a reinterpretation of the known geochemical anomaly. The zone appears to be 2,000 ft. long and is confined to the hangingwall of a major structure.