Liz,...oops,...more news from that pissy Homestake Veladero development,....with no power(yes there is, San Juan electric power will put a line up to the project area gratis to encourage development), no water (Arp got water rights, lots of water from wells in the valley), too high to breath (the area is plowed in the winter,...if snow plows can operate to keep the roads bare at 4859 meters ASL in the area, why can't the Veladero camp operate at 3700 meters ASL). Looks like IWA's potential partner could be getting stronger,...now to the news.
During the first quarter of 2000, Homestake significantly advanced its 60%-owned
Veladero project, located in northwestern Argentina. On March 28, 2000,
Homestake announced a 4.8 million ounce proven and probable gold reserve
(Homestake's share: 2.88 million ounces) contained in 92.5 million tons of ore
grading 0.052 ounces of gold per ton. The reserve, which also contains 0.71
ounces of silver per ton, is part of the recently announced and much larger
mineralized inventory totaling 7.8 million ounces of gold. The capital cost at
this early stage of project engineering is estimated at $370 million (100%
basis). Once in operation, the mine is expected to produce approximately 450,000
to 500,000 ounces of gold per year. Cash costs are expected to average
approximately $150 per ounce. Production is expected to begin in 2003.
There have been 50 additional holes drilled since the latest evaluation of
proven and probable reserves and mineralized inventory in March, 2000. These
holes have reinforced earlier interpretation of the existing Filo Federico and
Amable zones and resulted in a discovery of significant new zones of
mineralization. Figure I shows location of the zones and the drill-holes. Of
particular significance are drill-holes number 203, 258, F5, 197, 216, 217 and
252 (see Table I below). Holes 203 and 258 were 250 feet apart and may represent
a northwesterly-trending high-grade structure. Their location is expected to
have a positive impact on open-pit design between Amable and the
newly-established zone called Breccia Agostina. Holes 216 and 217 are located to
the immediate northeast of Amable and also point to a potential increase in
mineralization. For comparison purposes, a typical mineralization drill-hole in
either Amable or Filo Federico would yield an interval of approximately 200 feet
grading 0.05 ounces of gold per ton.
At Filo Federico, holes 214, 237 and 260 are all step-out holes towards the
southeast. These, and a few other new holes in their vicinity, encountered gold
mineralization considerably shallower than anticipated.
The new zone, called Cuatro Esquinas, has the potential to be an important new
gold deposit to complement Amable and Filo Federico. The drill results suggest
the presence of a series of gold zones, stretching over the two mile- long
eastern flank of Cerro Pelado. As compared with drill results around and between
Filo Federico and Amable, results from 15 holes drilled to the east of Filo
Federico on the Nicholas target have been disappointing. Although Nicholas is
highly silicified and is a strong geochemical anomaly, gold and silver grades
have been sub-ore grade.
The joint venture currently has nine reverse circulation rigs active throughout
the property, in addition to two core rigs drilling metallurgical holes on
Amable. With favorable weather conditions, drilling is expected to continue well
into May. An underground decline will be driven into Filo Federico to collect
Phase 2 metallurgical sample and to map out geological ore controls. A new
estimate of reserves and mineralized inventory is expected to be produced by
June, 2000 in advance of preparing the 2000-2001 program.
Table 1: Veladero: Significant Drill-Hole Data
AMABLE ZONE
HOLE NO. FROM TO INTER- Au oz./t Ag oz./t
VAL (Ft)
217 338 413 75 0.064 3.57
216 226 705 479 0.038 0.94
- INCLUDING 279 358 79 0.112 1.51
203 266 741 476 0.086 1.16
- INCLUDING 423 656 233 0.139 1.87
CORE A-16 305 597 292 0.069
- INCLUDING 486 597 112 0.137
258 367 636 269 0.161 0.93
- INCLUDING 377 489 112 0.308 0.94
FILO FEDERICO ZONE
HOLE NO. FROM TO INTER- Au oz./t Ag oz./t
VAL (Ft)
214 404 531 128 0.028 0.03
597 863 266 0.038 0.86
237 135 791 656 0.024
CORE F-5 456 942 486 0.131
- INCLUDING 571 781 210 0.238
260 801 1,296 495 0.041
CUATRO ESQUINAS ZONE
HOLE NO. FROM TO INTER- Au oz./t Ag oz./t
VAL (Ft)
197 856 1,322 466 0.077 0.76
- INCLUDING 1,050 1,207 157 0.118 0.48
231 879 1,371 492 0.045
- INCLUDING 902 1,096 194 0.071
252 748 1,270 522 0.096 0.46
- INCLUDING 958 1,247 289 0.136 0.52 |
