Royal sizes up gold deposit

Following 18,000 metres of reverse-circulation drilling at the Milos gold project in Greece, Royal Gold (RGLD-Q) has reported a resource of more than 900,000 oz.

Denver-based Barnes Engineering Services used the multiple-indicator kriging method and a half-gram cutoff to arrive at an oxide resource of 20.1 million tonnes grading 1.43 grams per tonne, equivalent to 927,000 contained ounces. By increasing the cutoff grade to 1 gram, the resource shrinks to 8.6 million tonnes at 2.43 grams, or 673,000 oz.

In addition, Royal posted the following drill results from the Chondro Vouno zone.

• Hole 48 intersected 12.2 metres grading 6 grams gold per tonne at a down-hole depth of 73 metres. Included in the interval were 3 metres of 15.5 grams per tonne. At 125 metres, the hole hit 3 metres of 8.8 grams gold.
• Hole 50 hit 7.6 metres of 10.4 grams gold, starting at a depth of 87 metres.
• Hole 66 hit 7.6 metres of 5 grams, starting at 63 metres down-hole. At 101 metres, the drill cut an 18.3-metre interval averaging 16.6 grams gold.
• Hole 63 cut 20 metres of 8.3 grams, just 30 metres below the surface.
• Hole 88 hit 13.7 metres of 22 grams near the surface, as well as 10.7 metres of 4.4 grams starting at a down-hole depth of 79 metres.
• Hole 57 hit 9.1 metres of 6.2 grams, starting at 40 metres below the surface.

Royal and its partner, Aegean Gold (AEG-V), can earn equal shares of a half-interest in the project by spending US$5 million over three years. To date, the partners have spent US$2.9 million. Athens-based Silver & Baryte Ores Mining holds the remaining half-interest.

The Milos project is on the Aegean Islands.