A preliminary reserve estimate has been released by Varna Gold (ASE) for the company’s Ming’s Bight gold property under option to Corona (TSE) in the Baie Verte area of Newfoundland. Based on 79 drill holes totalling about 10,000 metres, the company reports preliminary reserves of 2.75 million tonnes grading 3 grams per tonne (0.09 oz./ton) at a cutoff grade of 1 gram gold per tonne. Those reserves occur in the Lightning and Thunder zones of the Ming’s Bight property. At a higher cutoff grade of 2.5 grams per tonne, preliminary reserves are estimated at 1.2 million tonnes averaging 5.4 grams gold per tonne (0.16 oz./ton).
The shallow, near-surface mineralization may be amenable to open pit extraction, according to Varna, and more drilling is planned this summer to evaluate that potential.
Some of the wider intersections encountered in previous drilling included 40.2 metres (132 ft.) grading 2.7 grams per tonne (0.08 oz/ton), and 28 metres (92 ft.) grading 5.4 grams per tonne (0.16 oz./ton).
Work on other parts of the property this summer will include geological, geophysical and geochemical surveys following by trenching and diamond drilling.
Corona spent $800,000 on the property last year, and this season another $800,000 is budgeted to expand the known reserves and test other significant targets. The senior company can earn up to a 70% interest in the property.
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