With the Jolu mine in Saskatchewan and the Silver City heap leach operation in Utah both at the production stage, International Mahogany (TSE) has decided to concentrate its development efforts elsewhere. Specifically, the company has stepped up exploration plans at its Southern Cross property in Montana, 50% owned by subsidiary Magellan Resources (VSE). The company believes the property has the potential to host a million-ounce gold deposit, an estimate based on results from both previous and recent exploration.
Before closing in 1942, the Southern Cross mine produced 380,867 tons of ore grading 0.59 oz. gold per ton. In 1986, a hole drilled by Magellan intersected a high-grade gold zone below the lowest level at Southern Cross. During subsequent exploration, a number of other zones were intersected.
More recently, International Mahogany’s joint venture partner Chevron Resources discovered the “North Star” vein system in previously unexplored territory east of the mine. The vein system has been traced for more than 600 ft., with values of up to 0.35 oz. per ton over widths of 15 ft. Additional drilling will attempt to delineate the vein system, which appears to stretch for 1,500 ft. along strike. According to President Anton Hendriksz, the company is actively looking for other development opportunities both in North America and abroad, with a portfolio of 20 properties currently under review. A number of properties in the Stikine area of British Columbia have captured their attention, and an exploration program in Chile is also in the works.
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