Tonkin Springs doubles its resource

A gold resource calculation for the Tonkin Springs deposit in northern Nevada is being warmly received by 60%-owner Gold Capital (NASDAQ) and its partner, U.S. Gold (NASDAQ).

The estimate, which includes lower- as well as higher-grade, sulphide mineralization, is 1.4 million oz.

This represents an increase of more than 100% since the previous estimate of 650,000 oz.

Everything is proceeding on schedule for production by either late 1995 or early 1996. Permits that were valid when Tonkin Springs was an operating mine have been retained, although several of these require updating. Approval for stripping topsoil has already been granted.

To ensure that all goes smoothly in anticipation of startup, the joint venture has hired a new project manager, Nigel Bain.

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