To earn its interest, the major had agreed to complete a positive feasibility study, pay US$2 million in cash and subscribe for US$1 million worth of Almaden’s treasury shares.
Noranda recently wrapped up a 2,100-metre diamond drill program focused on the Central Grid area, where past drilling and geophysical surveys indicate the presence of a copper-gold porphyry deposit.
The program was highlighted by Noranda’s final hole, which returned a 6-metre section running 1.42 grams gold per tonne. Lower in the hole, a 3-metre (from 192 metres below surface) interval runs 2.5 grams gold. The holes tested an area of argillic alteration associated with a gold-in-soil anomaly.
Almaden plans to look for a new partner at the project as it reviews Noranda’s data. Several companies have expressed interest in the property’s gold potential.
Caballo Blanco is also considered prospective for high-sulphidation epithermal gold mineralization. A float sample from the Northern area ran up to 11 grams gold per tonne. Noranda had focused on the property’s porphyry copper potential.
The picture is a bit brighter at the wholly owned Elk gold property in British Columbia, where an ongoing 4,500-metre drilling program is expanding resources of the Siwash North and WD vein systems.
Five 50-metre stepout holes tested the WD; the best result was a 2.15-metre true width running 19.2 grams gold and 88.3 grams silver per tonne. The hole is the deepest on the structure so far. All of the holes cut the vein near the projected depth and are expected to boost the zone’s inferred resource, which stands at 21,100 tonnes averaging 42.9 grams gold.
Two holes were collared on the Bullion Creek structure, 500 metres to the north, to test a zone of hydrothermal alteration. The holes cut altered granodiorite, with narrow pyritic quartz veins yielding 3.5 grams gold over 1 metre.
Results are pending from four holes on the Gold Creek West vein, 400 metres southwest of the Siwash gold mine. The holes cut the vein at the projected locations and extended continuity. During the mid-1990s, underground and open-pit operations at Siwash produced 51,460 oz. gold from quartz-vein material from the B vein system.
The Deep shoot on the B vein system is immediately below the existing mine workings. Four holes were drilled at the shoot in an attempt to extend the shoot down-plunge. The highlight was hole 2319, which returned 0.5 metre grading 21.5 grams gold and 17.4 grams silver per tonne at a depth of 251.5 metres down-hole. The shoot hosts an inferred resource of 11,100 tonnes grading 100.3 grams gold.
Situated 45 km southeast of Merritt, the property hosts eight gold-bearing pyritic quartz veins. Mineralization is hosted in granitic rocks near the margin of a major batholithic intrusion at the contact with mafic volcanic rocks.
Almaden plans to table a new resource and reserve calculation, based on 2002 drill results.
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