After incorporating results from a drill program completed last November, Golden Queen Mining (VSE) recently announced a hand-calculated mineral inventory for its Soledad Mountain gold property in Kern Cty., Calif. The company estimates a total minable reserve (including proven, probable and possible catagories) of 12.9 million tons grading 0.04 oz. gold per ton. If silver content is converted to a gold equivalent, the average grade increases to 0.047 oz. gold. The stripping ratio is estimated at 5.4-to-1.
The project is a joint venture with Noranda Explorations which is earning a 50% interest in the gold property by financing the project to production. The 1989 program included a total of 19,651 ft. of both reverse circulation and core holes.
Golden Queen noted that the potential to expand the current reserves is considered very good.
Noranda recently completed a further 24,935 ft. of drilling, the emphasis of which was primarily on new targets. The results of the program have not been released and are being compiled.
Chester Shynkaryk, president of Golden Queen, noted that the joint venture will meet at the end of July to review Noranda’s findings.
Shynkaryk indicated that any reserve figure calculated by Noranda would likely be somewhat different from Golden Queen’s, since Noranda uses far more conservative parameters. He specifically pointed out Noranda’s use of a 0.020-oz.- gold-per-ton cutoff grade, versus Golden Queen’s 0.012 oz. cutoff grade.
Golden Queen has about 7.1 million shares outstanding, working capital of $1.5 million, and no debt.
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