Partners Inter-Rock Gold (IRO-T) and Rayrock Yellowknife Resources (RAY-T) have found what appears to be a new zone of mineralization on their Daisy gold project in southwestern Nevada.
While testing for the existence of a folded formation near surface, Rayrock cut 30 ft. grading 0.25 oz. gold per ton at 100 ft. downhole.
The discovery, situated near the existing Road zone, will be followed up at the end of October. Recent drilling has also extended the West zone deposit, which lies 400 ft. to the east.
The property contains five known deposits with a drill-indicated mineral inventory of 50.5 million tons at 0.026 oz. per ton. Minable reserves stand at 11.9 million tons grading 0.018 oz.
Production from an open-pit mine will begin in the first quarter of 1997. The heap-leach operation is expected to produce 30,000 oz. gold during a 6-year mine life.
Rayrock has a 35% interest in the Daisy project (which it operates), with Inter-Rock holding the remainder.