Nevada official "not surprised" by Delgratia scam
CALGARY, May 19 (Reuter) - A Nevada mining official said on Monday he was not surprised by the alleged salting of core samples at a gold exploration play operated by Canada's Delgratia Mining Corp in the southern part of the state.
Russ Fields, administrator for the Nevada Division of Minerals, said earlier assay results from Delgratia's sparsely drilled Josh property always showed spectacular results, which led to skepticism.
"I can't say I'm surprised because the initial results were truly remarkable," Fields said in a phone interview from Carson City. "But I am disappointed because this is another black eye on an industry that's very important to our state."
The latest mining scandal involving a Canadian company was revealed on Monday when Vancouver-based Delgratia reported insignificant amounts of gold and evidence of sample tampering at its Nevada property.
Delgratia, whose Josh Deposit in southern Nevada has been a subject of controversy since March, said an audit by independent consultants showed it was a victim of data falsification from foreign gold being introduced to core samples.
Fields raised red flags in March after a Delgratia official said the Josh property could contain reserves of five million ounces of gold based on only five drill holes spaced as far apart as 3,700 feet.
"Our world-class gold mines in the northern part of the state drill their properties on 200 foot centers," Fields said at the time.
The company subsequently retracted the estimate.
Fields said it was unlikely that Nevada would be directly involved in any investigation into the scandal, although officials in his department may be asked to offer opinions in any legal proceedings.
Delgratia, which said it was victimized by unnamed parties in the salting operation, said it asked law enforcement officials to investigate. |
