Homestake advances Ruby Hill

In just three short years, Homestake Mining (NYSE) has developed a geological inventory of about 1.6 million oz. gold within a district previously known for its silver and base metal mineralization.

Homestake completed a US$4-million drilling program in the Ruby Hill mining district near Eureka, Nev., and outlined four zones hosting a global geological inventory of 20 million tons of oxide material averaging 0.08 oz. gold per ton.

Homestake now plans to proceed with a feasibility study on the oxide portion of one mineralized zone, the West Archimedes. The other three zones that comprise the inventory are the East Archimedes, the East Deep Sulphide and the Fad Shaft zones.

The West Archimedes was first discovered in late 1993 and has been tested with nearly 500 exploration and delineation drill holes. The zone is shallow, between 50 and 300 ft. below surface, and oxidized mineralization is associated with decalcified and silicified limestone.

Mineralization is composed of a high-grade core of about 3 million tons averaging 0.25 oz. gold at a cut-off grade of 0.06 oz. The core is surrounded by a halo of lower-grade mineralization which brings the total oxide resource of the zone to almost 5.5 million tons grading 0.15 oz.

As well as being amenable to open-pit mining methods, preliminary metallurgical tests indicate conventional heap-leach techniques will provide excellent recoveries.

Drilling southwest of the West Archimedes uncovered a deeper zone of oxidized mineralization.

The East Archimedes lies 500 ft. below the surface and, although not as extensively drilled as the West Archimedes, results indicate it hosts a preliminary geological resource of 5 million tons averaging 0.07 oz. gold. Further drilling is being completed to better define the limits of the zone which currently is open in all directions.

Deeper drilling below the East Archimedes intersected a third mineralized system in which gold is associated with massive sulphides, as well as skarn and replacement alteration.

The Deep East is open in all directions and significant intersections from drilling include 0.21 oz. gold over 143 ft., 0.196 oz. gold and 0.32% zinc over 160 ft., 0.046 oz. gold and 1.5% zinc over 185 ft. and, finally, 0.053 oz. gold, 2.2 oz. silver and 23% zinc over 71 ft.

The fourth zone, known as the Fad shaft, is found 1.5 miles south of the East Deep sulphide zone and was discovered by the previous owners. It is estimated to contain a 3-million-ton sulphide resource averaging 0.16 oz. gold and 5.7 oz. silver, as well as 12% combined zinc and lead.

In addition to the feasibility study, Homestake plans to complete additional exploration to upgrade reserves at the East Archimedes, the East Deep Sulphide and the Fad Shaft as well as a new, as yet unnamed, area of interest north of the West Archimedes.