Echo Bay adds to reserves at Nevada gold property

Assay results from the most recent round of exploration drill holes at the northern edge of the Cove deposit on the McCoy property in Nevada have added significantly to geological reserves, Echo Bay Mines reports.

Reserves are now calculated at 16.4 million tons grading 0.076 troy oz gold per ton and 3.2 troy oz silver. In total, the precious metals content is now estimated at 1.2 million oz gold and 53.3 million oz silver.

In addition, two step-out drill holes to the northeast have also confirmed the continuation of the deposit beyond the complete drill pattern, indicating further drilling could also add significantly to reserves, the company reports.

The Cove deposit, wholly owned by Echo Bay, is located within one mile of the company’s McCoy mine in Lander Cty., Nev. Discovery of the deposit was announced at the end of March.

President John Zigarlick says mineralization in one hole, from 630 ft to 965 ft, grades 0.08 oz gold and 12.4 oz silver; between 630 ft and 685 ft of that same hole, the grade is 0.31 oz gold and 64 oz silver. In another hole, between 665 ft and 710 ft, the grades are 1.09 oz gold and 15 oz silver.

“The existence of such high grade material at this depth suggests it will be economic to use open pit mining methods,” Mr Zigarlick said. Earlier core holes at Cove found gold mainly in limestone formation lying close to the surface. The new holes have encountered gold in a conglomerate formation, separated from the limestone by about 400 ft of rock that has little mineralization.

At present, the McCoy deposit measures about 800 ft in an east- west direction and about 1,200 ft in a north-south direction. The deposit is cut off to the east by a basin fault, and holes on the southern edge contain relatively little gold or silver. However, the deposit is open to the north, northeast and west, and at depth, says the company.

“We have two drills working on the property and we’re trying to get two more on site,” Mr Zigarlick said. “Drilling of other interesting prospects on the McCoy property will have to wait until we can get a more comprehensive view of what is to the north at Cove.”