As part of an option agreement to earn a 51% interest in the Atlanta gold property, Consolidated Ramrod Gold (TSE) has spent US$1.5 million and drilled 24 underground and surface holes, totalling 5,847 ft.
Mineralization is hosted in vein structures which are said to be continuous, and it is expected they could be mined using underground methods. Intersections from 15 holes include 0.322 oz. gold per ton over 9 ft.and 0.895 oz. over 7.7 ft. Most of the 21 reported intersections averaged between 0.1 and 0.4 oz. over widths varying from 1 to 5 ft.
Ramrod will drill a total of 12,000 ft. in order to outline a minable underground reserve, as well as to expand the near-surface reserves. Currently, the Atlanta property hosts a geologic resource of 800,000 tons averaging 0.34 oz.
Ramrod plans to upgrade the resource into the proven and probable category. Once this is accomplished, the underground reserves would be combined with the existing proven and indicated open-pit reserves of 1.15 million oz. gold and 3 million oz. silver, to develop a final production plan. Preliminary engineering and metallurgical testing are under way, and permitting is expected to begin shortly. Should a feasibility study be completed, mine construction could begin as early as mid-1996. Ramrod can earn a 51% interest in the project from Atlanta Gold (TSE) by spending US$9.5 million before May, 1997.
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