Vancouver-based Rea Gold (TSE) will spend US$1 million on exploration around the Mt. Hamilton gold mine in Nevada.
Mineralization remains open in several of the NE Seligman deposits, and southeast of the Centennial deposit. Initial drilling will concentrate on these areas.
Ore grades have been better that expected, and head grades have increased to 0.08 oz. gold per ton, about 50% higher than previously estimated. Infill drilling to the known deposits is under way.
The open-pit, heap-leach operation contains 9.04 million tons grading at 0.052 oz. gold and 0.38 oz. silver per ton. Production for 1995 is projected at 54,000 oz. gold and 141,000 oz. silver.