U.S. REPORT USMX reports new find at Alligator Ridge property

A third gold discovery was reported by USMX (NASDAQ) from its Alligator Ridge property in White Pine Cty., Nev.

The recent discovery of gold mineralization on the Horseshoe target follows the North Yankee and East Top discoveries reported earlier this year. The new find is 17 miles north of North Yankee, and 2.5 miles southeast of East Top.

The recently completed drilling program on the Horseshoe target consisted of 45 holes on about 100-ft. centres, which defined a deposit containing preliminary reserves of 1.5 million tons grading 0.039 oz. gold per ton.

Referring to preliminary evaluations, USMX said the deposit is shallow, oxidized and amenable to open pit mining with a low stripping ratio. So far, it has only best tested over a 1,000-ft. strike length, and is still open in two directions and at depth.

The company said the mineralization was found along the surface of a ridge in silicified and brecciated siltstones that form a blanket-like deposit above an intrusive body.

The latest round of drilling penetrated higher-grade mineralization within the intrusive and returned: 40 ft. grading 0.15 oz. gold beginning at 80 ft. in the hole: 35 ft. of 0.12 oz. gold starting at 20 ft.; 30 ft. of 0.11 oz. gold starting at 25 ft.; and 35 ft. of 0.11 oz. gold starting at 40 ft.

The intrusive-hosted mineralization has only been tested over 400 ft. of strike length, but has been mapped and sampled (with anomalous gold values obtained) for over 2,000 ft.

Additional drilling is also planned for the East Top discovery and adjacent targets and a feasibility study for the Yankee project is expected to be in hand by mid-June.

USMX sold 9,273 oz. gold at an average price of US$385 per oz. during the 1991 first quarter from its mine operations in the Western U.S.

The Denver-based company reported net income of US$113,000 on revenues of US$3.7 million for the period, compared with net income of US$212,000 on revenues of US$3.4 million for the 1990 first quarter.