VANCOUVER (miningweekly.com) – A technical report on the Golden Arrow deposit, in Nevada, has outlined compliant indicated and measured resources of nearly 300 000 oz of gold, showing the project is deserving of further work to determine its financial viability, a news release by junior explorer Emgold Mining advised this week.
The Vancouver-based junior contracted Mine Development Associates, in Reno, Nevada, to undertake the technical study as part of a deal to acquire a 51% stake in the property that is owned by fellow TSX-V-listed firm Nevada Sunrise Gold.
The technical report established a mineral resource of 12.2-million tonnes grading 0.68 g/t gold and 9.4 g/t silver, for 296 500 oz gold and four-million ounces of silver. The project also holds 3.79-million tonnes grading 0.37 g/t gold and 9.4 g/t silver, for 50 400 oz of gold and 1.3-million ounces of silver.
The report recommended that Emgold undertake continued systematic exploration to discover additional centres of mineralisation within the property, while it starts work on a two-phased approach to complete a preliminary economic assessment (PEA) by the end of the second phase.
Phase 1 work will include completing an internal economic scoping study based on the existing mining resources to evaluate whether the PEA can be completed from the existing resource, or whether further drilling is required to expand the resource before moving forward with a PEA.
The report also recommended that Phase 1 include a comprehensive review of available technical data to define potential drilling targets for discovery of new mineral centres and identify locations for drilling within the current resource areas to upgrade mineral resources from inferred to indicated categories.
Following a review of the technical data, the report suggests the geology team prepare a new geological map for the project area to clarify district volcanic stratigraphy, as well as preparing several geological cross sections based upon the mapping and drilling information. Rock-chip and soil geochemistry will complement the geological mapping. The proposed budget for Phase 1 work is $550 000.
Following Phase 1, a decision would be made on whether or how to proceed with Phase 2, which might entail completing another scoping study based on the results of the Phase 1 scoping study and geological work.
The budget for Phase 2 could potentially range from $200 000 for simply completing a PEA, to $2-million or more for an aggressive drilling programme, followed by a PEA. Regardless of the results of Phase 1, exploration drilling is presently warranted, but Phase 1 will be used to design the drill programme for Phase 2.