Placer bows out of South Carlin

Not satisfied with the latest drill results, Placer Dome (PDG-T) has chosen to walk away from the South Carlin project of Nevada Pacific Gold (NPG-V).

In late 2001, Placer was dealt an option for a 60% interest that required it to spend US$4.6 million on exploration over five years. An additional 10% would have been granted in return for a feasibility study.

The property covers 44 sq. miles of the Carlin trend, between the Gold Quarry and Rain mines of Newmont Mining (NEM-N). Historic explorers had tested the promising limestone beds only to depths of 120 metres below surface.

The recent campaign saw two deep holes stepped out from five others drilled in the summer. Neither hole returned significant grades of mineralization, but wide swaths of argillization and silicification, together with bedded semi-massive sulphides, were noted. Some of the altered core had anomalous gold, arsenic, antimony, barium and mercury.

Nevada Pacific is compiling the data to attract a new partner or renew exploration on its own.

To the west, Placer still holds an option on Nevada Pacific’s Battle Mountain property. The property covers 62 sq. miles of the Battle Mountain range’s eastern flank and is between the Marigold mine of Glamis Gold (GLG-T) and the Copper Canyon mine of Newmont. Here, mineralization is associated with sedimentary rocks altered by the Elder Creek intrusive. Structure plays a role as well, and values of up to 0.29 oz. gold and 9.84 oz. silver per ton have been detected in surface samples of the epithermal alteration.

Placer can earn a 60% interest by spending US$4 million on exploration over five years, including US$500,000 in the first year. An additional 10% can be earned in return for a feasibility study.