A recent hole drilled by a unit of Nerco Minerals returned more than 0.5 oz. gold per ton over a drilled interval of 305 ft. from the Cresson project in the historic Cripple Creek mining district near Victor, Colo.
The project is operated by Pikes Peak Mining (a Nerco subsidiary) as a joint venture with minority partner Golden Cycle Gold (PSE), which holds about 20%.
The reverse circulation drill hole encountered the high-grade mineralization in what was thought to be a large volume of barren rock within the known deposit, from 300 ft. below surface to the bottom of the hole at 605 ft. Exploration is continuing with as many as five reverse circulation and three core rigs operating. About 324,000 ft. of drilling (both types) was completed by the end of July, about 40,000 ft. ahead of budget.
A number of areas are being evaluated at the Cresson project which had turned out 17,782 oz. gold by July 25 from Globe Hill and Ironclad Hill. Gold production for 1992 is expected to total 50,000 oz.
The joint venture is planning to build leach pads, haul roads, and processing facilities for a planned pit containing 33.3 million tons averaging 0.03 oz. gold per ton. Construction is planned for the second half of 1993, with production and gold recovery in 1994.
The global deposits (all ore inside the block model from which the open pit was derived) consist of 41.1 million tons averaging 0.03 oz. gold. This represents 1.5 million contained oz., but 360,000 oz. are contained in sulphide mineralization (requiring milling) and are not yet classed as reserves.
Earlier this year, Nerco (NYSE) announced it had retained a financial adviser to assist with the possible sale of its minerals division which also owns and operates the Nerco Con mine in Yellowknife, N.W.T.
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