Golconda is earning a 60% interest from Homestake Mining of San Francisco in the Star City property in the Sweetwater Mountain range on the California/Nevada border.
Homestake and Galactic Resources (TSE) are looking for gold at the Bodie joint venture, 20 miles further south.
Using light drilling equipment on the main Sinter zone, says Golconda President Guenter Lietke, has reached the point where continued drilling with more conventional equipment will enable his company to define ore reserves.
Assays from a series of eight holes drilled to a depth of 130 ft include 70 ft of grade 0.026 oz gold per ton and 0.09 oz silver, Lietke says only about 10% of drill intercepts inside the mineralized zone fall below 0.015 oz.
Surface sampling on a previously unexplored area of the nearby Gatezone indicates that mineralization is continuous and covers an area in excess of 1,500×1,500 ft.
Within the Gate zone, Golconda has located at least four different higher-grade structures showing gold values ranging from 0.100 oz gold to 0.320 oz over a sampling width of 10-20 ft.
As a result, the company is seeking permission to construct an access road to the property so that the high-grade structures can be tested by heav y drilling equipment.
The lack of easy access has prevented Golconda from bringing heavy drills on to the property. To this point, the company has been using a technique that requires samples to be collected through the drillbit before they are passed through the centre of the hammer.
Consequently, the higher-grade zones, inaccessible due to the irregular erosion of the sinter layer which overlies the mineralized zone, have not been drilled.
“As mineralization encountered by drilling so far is oxidized, gold may be recovered by heap leaching methods,” Golconda says.
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