A reserve inventory has been calculated by Wright Engineers for Quartz Mountain Gold’s 10,000-acre gold property in southern Oregon. Using a 0.01 oz cutoff grade, reserves now stand at 128.6 million tons averaging 0.02 oz gold. By doubling the cutoff grade, the reserve tonnage drops to 47.6 million but the grade rises to 0.03 oz.
Reserves at Crone Hill and Quartz Butte have not been completely drilled off and a $2.5 million(US) exploration program is planned within six months. The eastern half of the property, which is not included in the reserve calculation, will also be drilled.
About 4-6 months will be required to complete metallurgical test work, results from which will be included in the feasibility study. The Crone Hill deposit has a low stripping ratio and is easily leachable, says the company. The possibility of building a first phase low cost heap leach operation there before committing to a larger scale development is presently under review, it says. The first phase pit would contain 12.1 million tons of reserves grading 0.028 oz gold with a 0.015 oz cutoff and a 0.8 to one strip ratio.
The company is finalizing a management-engineering agreement for its Oregon project with Minproc (USA), a subsidiary of Minproc Holdings of Australia which has brought 23 gold projects into production during the last seven years. Minproc and Fluor Corp. are developing Galactic Resources’ Ridgeway gold project in South Carolina.
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