Placer Dome evaluation boosts potential of Venezuelan

A resource of 4.8 million oz. gold has been outlined by Placer Dome (TSE) within one of seven mineralized areas on its 70%-owned Las Cristinas property in Venezuela.

The magnitude of this partial resource, and the number of targets that remain to be tested, appear to confirm the potential of the Kilometre 88 district, where a gold rush, dominated by North American companies, is shaping up. It also ensures that Placer Dome has a project of sufficient scale to allow for replenishing of its overall reserve base. The first target area is reported to contain a measured and indicated partial geological resource of 123.9 million tons grading 1.32 grams gold per tonne, at a cutoff of 0.7 grams gold per tonne. The mineralization is still open along strike and at depth. The disseminated gold is in surface saprolite material and in bedrock, all minable by open-pit methods. The weathered nature of the surface material will likely translate into low mining costs. The estimate is based on 233 holes over a 2-km strike length and to a vertical depth of 200 metres. Most holes were drilled on a 100×100-metre grid pattern, with some areas drilled at 50×50 metres.

Drilling is still continuing on this first area, which includes the Conductora and Cuatro Muertos zones. Six other mineralized anomalies on the 6,000-hectare property have been identified for investigation and will be drilled later.

Placer Dome plans to begin a feasibility study in 1994, based on the partial resource in one area and the potential for increasing these resources at the property.

Expenditures on the project to the end of this year are expected to total US$10 million. Placer Dome holds a 70% interest through its Venezuelan subsidiary, which was granted the right by Corporacion Venezolana de Guayana (CVG) to explore and mine surface and bedrock gold deposits. CVG holds the remaining 30%.

Earlier this year, Placer Dome’s Venezuelan subsidiary entered three work contracts with CVG which give Placer Dome a 100% interest to explore and mine three properties a few miles south of Las Cristinas. Geophysical and geochemical surveys are in progress on these properties, which cover 8,300 hectares.

The Kilometre 88 district is accessible by a modern road.