Rayrock increases minable reserves

Drilling at three Nevada gold mines has almost doubled minable reserves for Rayrock Yellowknife Resources (TSE).

The estimate has increased to more than 1 million oz. from 593,000 oz. at year-end 1992.

At Rayrock’s 44%-owned Dee mine, on the north end of the Carlin trend, a new orebody of oxidized mineralization was delineated north of the existing open pit. The structure has a geological resource of 1 million oz., of which 700,000-800,000 oz. are likely to be minable at a gold price of US$400 per oz. Minable reserves currently stand at 3.9 million tons averaging 0.045 oz. gold per ton.

Drillers in the East Hill area of Rayrock’s 66.7%-owned Marigold mine have found additional reserves. The mine has 530,000 oz. of contained reserves in 14.7 million tons averaging 0.036 oz.

Drilling at the Pinson mine also bumped up the number of contained ounces in reserve to 323,000 oz. gold. The minable reserves now stand at 4.7 million tons averaging 0.068 oz. Rayrock has a 26.5% interest in the mine. Work is continuing at the 100%-owned Bellavista deposit. In addition to completing a feasibility study, Rayrock plans to conduct a 33,000-ft. infill drilling program. Current minable reserves stand at 14.9 million tons averaging 0.049 oz. The deposit has 731,000 oz. in contained reserves.