Sudbury Contact drills Tonkin Springs

Denver — Drilling at the Tonkin Springs gold project in central Nevada is about to resume, in preparation for a new resource estimate.

Toronto-based Sudbury Contact Mines (SUD-T), a 57%-held subsidiary of Agnico-Eagle Mines (AEM-N), picked up a 60% interest in the 39-sq.-mile property in 1999 by acquiring Gold Capital. The remaining stake is held by Denver-based U.S. Gold (USGL-O).

In 2000, the main mine corridor was subjected to infill and stepout drilling. Ten of the first 13 drill holes encountered significant mineralization, which has not been incorporated in the resource.

Highlights from the US$1.2-million program are as follows:

– 35 ft. grading 0.092 oz. gold per ton, followed by a deeper zone of 50 ft. grading 0.12 oz. per ton, in hole 4;

– near-surface mineralization, including 65 ft. of 0.068 oz. per ton and 15 ft. of 0.081 oz., in hole 6;

– 45 ft. of 0.12 oz. per ton, at a depth of 25 ft., in hole 10;

– 70 ft. of 0.17 oz. per ton, starting at a depth of 200 ft., in hole 11; and

– 160 ft. of 0.056 oz. per ton at 180 ft. in hole 15

Drilling was also successful at the first target outside the mine corridor. Initial work at the Twin Peaks target encountered significant mineralization beneath as much as 400 ft. of barren volcanic rocks. Beneath the volcanics, the drilling found rocks similar to those at the mine, several miles to the south.

The joint venture has picked up an additional 91 claims in order to explore the target more fully. The preliminary exploration budget calls for 22,000 ft. of reverse-circulation drilling.

Meanwhile, drilling at the Indian Springs target returned encouraging, albeit low-grade, values. No significant mineralization was found at the Black Springs target.

Tonkin Springs has a long and checkered history. Open-pit production began in 1985, though it stalled amid a US$31-million expansion project. In 1990, operators built a bio-oxidation and carbon-in-leach facility and production was again recommended. Since then, the operation has gone through several different operators until Sudbury Contact entered the scene, taking over for Globex Mining.

Resources at the property stand at 1.4 million oz. gold, within 31 million tons of oxide and sulphide material averaging 0.045 oz. per ton.