Kinross augments reserves in Nevada and Timmins

Having been in operation just under a year, Kinross Gold (TSE) is well on the way to becoming one of the fastest-growing gold and silver producers in North America. Spearheading the company’s efforts are recent exploration successes at the Candelaria mine near Hawthorne, Nev., and the Hoyle Pond mine in Timmins, Ont.

At the open-pit Candelaria deposit, a zone of higher-grade silver and gold mineralization has been outlined beneath the economic limits of the current Mt. Diablo pit.

The new zone, known as Deep Diablo, dips at 36 and is situated between the downdip extension of the active Mt. Diablo pit and the eastward extension of the historic Northern Belle underground workings.

Deep Diablo was identified by fire-assaying samples from holes drilled in prior years. More than 200 samples from 11 holes drilled prior to Kinross’s assumption of ownership were tested, as was one hole which was drilled by the company. Results from the fire-assaying program returned significantly higher grades than those documented by earlier solution assaying.

Some of the better intersections include: 403.7 grams silver and 0.82 grams gold per tonne over 12.2 metres in Hole N806; 716.9 grams silver and 0.86 grams gold over 11.0 metres in Hole N931; and 329.3 grams silver and 0.69 grams gold over 10.9 metres in Hole N995 (a Kinross hole).

Preliminary indications are that the Deep Diablo zone can be profitably developed using mechanized, underground, bulk-mining methods. Calculations, based on 61 holes, indicate a resource of 3.9 million tonnes with an equivalent silver grade of 321 grams.

At year-end, proven and probable reserves at the Candelaria deposit were 3.24 million tonnes grading 55.59 grams silver and 0.19 grams gold. A reverse circulation drill program, consisting of 11 holes and aimed at defining the strike and downdip limits of Deep Diablo, is in progress. This work will also determine if the zone is continuous between the Mt. Diablo and Northern Belle underground workings. Metallurgical studies to determine the best method for treating ore are also under way.

At the Hoyle Pond mine, four surface drill rigs are continuing to evaluate the extent of the 1060 zone. To date, 39 holes totaling 12,437 metres have intersected the zone, which is 400 metres south of the current mine workings. The holes have intersected a highly sericitized, silicified and pyritic alteration zone ranging from 50 to 200 metres in width. Mineralization occurs in two subparallel areas known as the A and B horizons. The A horizon is on the north margin of the altered zone, while the B, which actually consists of two horizons, occurs in the central core of the alteration zone. Drilling has established the downdip continuity of the A and B horizons over a strike length of 200 metres. Indications are that the B horizon, which plunges steeply to the east, contains a geological resource of 748,068 tonnes grading 15.1 grams gold to a depth of 200 metres. An additional geological resource of 1.4 million tonnes of similar grade is indicated between the 200- and 500-metre levels.

Significant gold values were returned from the A horizon, but these have not been included in the geological inventory.

Ten holes totaling 4,086 metres were also drilled, in an attempt to evaluate the 950 zone further. Although this zone appears to be on strike with the 1060 zone, it consists of auriferous quartz veins rather than a silica-rich sulphide zone. Drill results indicate that the 950 zone has an average width of 4.1 metres, a strike length of 120 metres and a downdip dimension of 350 metres.

The zone, which is open at depth, has an arithmetic average grade of 14.2 grams gold.

Additional drilling is planned to evaluate this zone further.