Rado Reef obtains funding for gold-silver production

New financing has been arranged by Rado Reef Resources that should see its gold-silver mine near Cortez, Col., through to production.

Rehabilitation of the underground workings is already under way, as well as a program of surface diamond drilling seeking to extend the vein system that produced at least 150,000 tons of ore in former operations averaging 0.53 oz gold and 8.56 oz silver.

The entire job is being carried out by Harold Watts, a Haileybury School of Mines graduate who contracted the previous development work there in 1981-2 and liked the chances and who has arranged the financing. This is being done through Delores Canyon Mines Inc., a private company which is soon to go public and which can earn a 65% interest in the property by spending $3.3(US) million. This money is “in place,” Mr Watts tells The Northern Miner.

European interests are putting up half of the $5(C) million being raised by Delores, while two Vancouver-listed companies — Diplomat Resources Inc. and Triumph Petroleums are putting up the other half.

Delores is negotiating the possible acquisition of an idle 250-ton cyanide mill just 12 miles away, but will also consider the feasibility of building its own mill at the mine site. Located in rather rugged country, previous operators drove five adits and developed what is known as the Emma vein for a length of about 2,000 ft. Present access is through the No 5 adit which has caved in for a length of about 500 ft. This is now being retimbered and rock- bolted to give access to the production-sized decline that was put down in the hangingwall by Watts for the Rado company in 1981-2. At that time three crosscuts were driven to intersect the vein below the old workings. Limited drifting indicated the vein continuing strongly, with the deepest heading showing excellent values over the 6-ft drift width.

At the time underground work stopped because of the lack of funds and low metal prices, there was an indicated 200,000 tons of ore on hand grading 0.39 oz gold and 6.5 oz silver.

As mentioned, surface drilling has also started. The first hole, spotted 2,000 ft northwest of the mine portal to investigate the interpreted intersection of the main vein beyond the Emma fault, has picked up an encouraging looking zone of mineralized gouge and fault breccia material between 350-393 ft which is described as “typical of that seen underground in the Emma mine.” This core is being split and will be forwarded for assay as soon as possible, reports J. E. McCombe, P. Eng. of Tenoga Consultants Inc., the firm that is supervising the mine program.