Home » USA » Nevada » Relief Canyon Gold
The State of Nevada and the Bureau of Land Management approved the construction of a 7,000,000 ton leach pad to re-process leach ore mined by past operators. In addition, they constructed an ADR process plant and installed a portal crusher. The process plant is designed to operate at 3,000 gallons per minute and the crushing/stacking system was designed for approximately 750 tons per hour.
The project also includes mine offices, warehouse, water well/distribution system, and modular mine office. In addition, the assets include a commercial laboratory, exploration drills and support equipment, and an office in Lovelock.
Mine Development Associates developed a resource model of the deposit and completed a National Instrument – 43101 on the resource.
Firstgold filed for bankruptcy and recent developments through the bankruptcy court, Firstgold and the secured lenders have simplified disposition of the project assets.
The permits are current and the secured lenders are maintaining the project assets to allow a potential buyer to step in and continue development of the estimated 262,000 ounces of gold resources that are near the existing pits.
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Location and Access:
The project is located in Pershing County, near the town of Lovelock in an area named Packard Flat, which is part of the Antelope Springs Mining District. The project covers portions of Section 3,4,16, and 20, in Township 27 North, Range 37 East, Mount Diable Base and Meridian.
The project is accessed via Interstate Highway 80 to Coal Canyon Road (Exit 112), then approximately 10 miles east on a paved county-maintained road, turning north at Packard Flats onto a gravel road for 2 miles to the project site.
The project is situated in northwest Nevada at the southern end of the Humboldt Mountain Range, a north-oriented basin and range elongated horst block exposed during the late Cenozoic Time in central Pershing County. The range forms a broad anticline with Cretaceous intrusive rocks exposed locally. A package of late Paleozoic to early-mid Mesozoic mostly felsic volcanic, followed by calcareous, and siliceous sediments all dip away from the apex of the range.
During the Jurassic, southeast-directed deformation occurred resulting in highly deformed and thrust imprecated strata. Folds in the sedimentary units are related to the thrust faulting and display a variety of geometries on both map and outcrop scales.
Metamorphism during the late Mesozoic time was followed by the emplacement of Cretaceous intrusive now exposed in the central portion of the Humboldt Mount Range. In late Cenozoic time diabase (gabro) dikes striking generally northwest, intruded along structural weaknesses into the surrounding rocks. A period of active volcanism in the late Cenozoic probably less than 20 ma old has largely been eroded by uplift, with the results that only isolated patches of basalt are preserved (Ponce 2002).
--------------------------------------------------------------------------------
Description:
A resource model was developed by Mine Development Associates for the deposit. Approximately 262,000 ounces of gold were estimated to be located in and near the existing pits mined by previous operators.
The resource does not include potential mineralization that is associated with exploration targets identified by previous operators and Firstgold. Additional drilling could increase the resource of near surface oxide mineralization. Mining of these ounces would likely be by extending the existing pits but some opportunities occur outside the existing pit disturbance footprint.
Previous gold extraction was accomplished using conventional heap leach processing. Pegasus crushed the ore prior to leaching and reported gold recovery in the 70 percent range. It is expected that the continued use of crushing to reduce ore size will result in similar gold recovery rates.
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Exploration
Several identified exploration targets exist on the project and include Exposed Benches, North Target,
North Forty, and South-west Targets. All of these targets have initial drilling intercepts that provide evidence of gold mineralization with the exception of the North Forty Target which has not been tested but exposed jasperoid mineralization have been found in rock chips. Local zones of intense silicic alteration, sericitic alternation, and quartz veins with tourmaline have been found in the hills. These areas warrant additional exploration examination.
The Exposed Benches are associated with the existing pit and suggest mineralization could be extended beyond that which is carried in the resource model. These areas could be tied to adjacent exploration targets and should be examined further to understand the geology and mineralization.
The North Target (9723) was drilled in 1997 and was a very exciting discovery with notable grades of gold mineralization and rock types previously not reported in the area of past mined pits. RC and core drilling were completed in the area. Mineralization occurs as both “near surface oxide” and deep high grade intercepts. The grades encountered were significantly higher than previously mined grades (avg. 0.03 opt) with some intercepts in excess of 0.10 ounces per ton.
This area provides the most exploration opportunity with new mineralization and geology that could significantly increase the potential gold resources associated with the project.
--------------------------------------------------------------------------------
Property Value
The property has value for the gold resources that remain in the ground, exploration opportunities, and on-site leach/process facilities. The project is fully operational and a portion of the approved leach pad has been constructed. Firstgold placed previously leached ore on the newly constructed leach pad and operated the crusher/stacker system and process plant.
The ADR plant was constructed as part of the Firstgold’s re-processing effort and was all new or reconditioned process equipment. The crusher was also newly purchased and is a portable crushing/screening/stacking system. The crusher has a primary (jaw), and a secondary (cone crusher), screen, transfer conveyors, and radial stacker.
The equipment and project are being maintained to allow a quick start up once the existing permits are amended to allow mining in the existing pit areas.
Geology:
Relief Canyon lies in the Relief-Antelope Springs mining district, which had antimony, silver, and mercury production and fluorite prospecting dating back to the late 1800s. The property was staked in 1978 for high-purity limestone by Falconi Cement Inc., who drilled one core hole to test the quality of the limestone. Gold was not identified in the area until 1979, when a regional precious metals prospecting program by the Duval Corporation (“Duval”) generated anomalies in the area. Drilling by Duval in 1981 and 1982 confirmed the presence of a low-grade zone of gold.
History:
Lacana Mining Inc. (“Lacana”) purchased the property from Duval in 1982. After drilling 204 reverse circulation (“RC”) holes and undertaking pilot-scale heap-leach test work, Lacana opened the Relief Canyon open-pit gold mine in September 1984, only to close it in October 1985 due to poor gold recoveries. Various sources report that Lacana produced about 14,000 ounces of gold from the property from 1984 to 1985. Southern Pacific Land Company owned property adjacent to the deposit, participated with Lacana in the pilot-scale metallurgical program, and drilled 147 RC holes on their property to test for continuation of the mineralization.
In 1986, Pegasus purchased the property from Lacana and re-opened the mine in October 1987. Mining ceased in 1989 after having extracted material from three open pits. Production by Pegasus from the Relief Canyon mine is variously reported to be approximately 117,000 ounces.
J. D. Welsh and Associates of Reno, Nevada (“Welsh”) purchased the property from Pegasus in September 1993 and reportedly produced several thousand ounces of gold by continuing to rinse the existing heaps.
Firstgold purchased the Relief Canyon property from Welsh in January 1995. In the first year, Firstgold rebuilt the adsorption-desorption recovery (“ADR”) process plant originally constructed by Pegasus and processed pregnant pond solution until July 1995.
Through April 1997, Firstgold drilled 73 RC holes to examine the areas north, west, and southwest of the old pits for continuation of mineralization. The property was apparently then idle until 2003. In 2006, a ground magnetic survey was conducted. Subsequent exploration by Firstgold focused on the potential for mineralization between the existing pits and to the north and northwest. A total of 105 RC holes and four core holes were completed at Relief Canyon by Firstgold in 2007 and 2008.
Firstgold recently re-evaluated the Lacana and Pegasus heaps and attempted to reprocess some of the heap material in late 2008 and early 2009 with little apparent success.
Photos:
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Home » USA » Nevada » Relief Canyon Gold
The State of Nevada and the Bureau of Land Management approved the construction of a 7,000,000 ton leach pad to re-process leach ore mined by past operators. In addition, they constructed an ADR process plant and installed a portal crusher. The process plant is designed to operate at 3,000 gallons per minute and the crushing/stacking system was designed for approximately 750 tons per hour.
The project also includes mine offices, warehouse, water well/distribution system, and modular mine office. In addition, the assets include a commercial laboratory, exploration drills and support equipment, and an office in Lovelock.
Mine Development Associates developed a resource model of the deposit and completed a National Instrument – 43101 on the resource.
Firstgold filed for bankruptcy and recent developments through the bankruptcy court, Firstgold and the secured lenders have simplified disposition of the project assets.
The permits are current and the secured lenders are maintaining the project assets to allow a potential buyer to step in and continue development of the estimated 262,000 ounces of gold resources that are near the existing pits.
--------------------------------------------------------------------------------
Location and Access:
The project is located in Pershing County, near the town of Lovelock in an area named Packard Flat, which is part of the Antelope Springs Mining District. The project covers portions of Section 3,4,16, and 20, in Township 27 North, Range 37 East, Mount Diable Base and Meridian.
The project is accessed via Interstate Highway 80 to Coal Canyon Road (Exit 112), then approximately 10 miles east on a paved county-maintained road, turning north at Packard Flats onto a gravel road for 2 miles to the project site.
The project is situated in northwest Nevada at the southern end of the Humboldt Mountain Range, a north-oriented basin and range elongated horst block exposed during the late Cenozoic Time in central Pershing County. The range forms a broad anticline with Cretaceous intrusive rocks exposed locally. A package of late Paleozoic to early-mid Mesozoic mostly felsic volcanic, followed by calcareous, and siliceous sediments all dip away from the apex of the range.
During the Jurassic, southeast-directed deformation occurred resulting in highly deformed and thrust imprecated strata. Folds in the sedimentary units are related to the thrust faulting and display a variety of geometries on both map and outcrop scales.
Metamorphism during the late Mesozoic time was followed by the emplacement of Cretaceous intrusive now exposed in the central portion of the Humboldt Mount Range. In late Cenozoic time diabase (gabro) dikes striking generally northwest, intruded along structural weaknesses into the surrounding rocks. A period of active volcanism in the late Cenozoic probably less than 20 ma old has largely been eroded by uplift, with the results that only isolated patches of basalt are preserved (Ponce 2002).
--------------------------------------------------------------------------------
Description:
A resource model was developed by Mine Development Associates for the deposit. Approximately 262,000 ounces of gold were estimated to be located in and near the existing pits mined by previous operators.
The resource does not include potential mineralization that is associated with exploration targets identified by previous operators and Firstgold. Additional drilling could increase the resource of near surface oxide mineralization. Mining of these ounces would likely be by extending the existing pits but some opportunities occur outside the existing pit disturbance footprint.
Previous gold extraction was accomplished using conventional heap leach processing. Pegasus crushed the ore prior to leaching and reported gold recovery in the 70 percent range. It is expected that the continued use of crushing to reduce ore size will result in similar gold recovery rates.
--------------------------------------------------------------------------------
Exploration
Several identified exploration targets exist on the project and include Exposed Benches, North Target,
North Forty, and South-west Targets. All of these targets have initial drilling intercepts that provide evidence of gold mineralization with the exception of the North Forty Target which has not been tested but exposed jasperoid mineralization have been found in rock chips. Local zones of intense silicic alteration, sericitic alternation, and quartz veins with tourmaline have been found in the hills. These areas warrant additional exploration examination.
The Exposed Benches are associated with the existing pit and suggest mineralization could be extended beyond that which is carried in the resource model. These areas could be tied to adjacent exploration targets and should be examined further to understand the geology and mineralization.
The North Target (9723) was drilled in 1997 and was a very exciting discovery with notable grades of gold mineralization and rock types previously not reported in the area of past mined pits. RC and core drilling were completed in the area. Mineralization occurs as both “near surface oxide” and deep high grade intercepts. The grades encountered were significantly higher than previously mined grades (avg. 0.03 opt) with some intercepts in excess of 0.10 ounces per ton.
This area provides the most exploration opportunity with new mineralization and geology that could significantly increase the potential gold resources associated with the project.
--------------------------------------------------------------------------------
Property Value
The property has value for the gold resources that remain in the ground, exploration opportunities, and on-site leach/process facilities. The project is fully operational and a portion of the approved leach pad has been constructed. Firstgold placed previously leached ore on the newly constructed leach pad and operated the crusher/stacker system and process plant.
The ADR plant was constructed as part of the Firstgold’s re-processing effort and was all new or reconditioned process equipment. The crusher was also newly purchased and is a portable crushing/screening/stacking system. The crusher has a primary (jaw), and a secondary (cone crusher), screen, transfer conveyors, and radial stacker.
The equipment and project are being maintained to allow a quick start up once the existing permits are amended to allow mining in the existing pit areas.
Geology:
Relief Canyon lies in the Relief-Antelope Springs mining district, which had antimony, silver, and mercury production and fluorite prospecting dating back to the late 1800s. The property was staked in 1978 for high-purity limestone by Falconi Cement Inc., who drilled one core hole to test the quality of the limestone. Gold was not identified in the area until 1979, when a regional precious metals prospecting program by the Duval Corporation (“Duval”) generated anomalies in the area. Drilling by Duval in 1981 and 1982 confirmed the presence of a low-grade zone of gold.
History:
Lacana Mining Inc. (“Lacana”) purchased the property from Duval in 1982. After drilling 204 reverse circulation (“RC”) holes and undertaking pilot-scale heap-leach test work, Lacana opened the Relief Canyon open-pit gold mine in September 1984, only to close it in October 1985 due to poor gold recoveries. Various sources report that Lacana produced about 14,000 ounces of gold from the property from 1984 to 1985. Southern Pacific Land Company owned property adjacent to the deposit, participated with Lacana in the pilot-scale metallurgical program, and drilled 147 RC holes on their property to test for continuation of the mineralization.
In 1986, Pegasus purchased the property from Lacana and re-opened the mine in October 1987. Mining ceased in 1989 after having extracted material from three open pits. Production by Pegasus from the Relief Canyon mine is variously reported to be approximately 117,000 ounces.
J. D. Welsh and Associates of Reno, Nevada (“Welsh”) purchased the property from Pegasus in September 1993 and reportedly produced several thousand ounces of gold by continuing to rinse the existing heaps.
Firstgold purchased the Relief Canyon property from Welsh in January 1995. In the first year, Firstgold rebuilt the adsorption-desorption recovery (“ADR”) process plant originally constructed by Pegasus and processed pregnant pond solution until July 1995.
Through April 1997, Firstgold drilled 73 RC holes to examine the areas north, west, and southwest of the old pits for continuation of mineralization. The property was apparently then idle until 2003. In 2006, a ground magnetic survey was conducted. Subsequent exploration by Firstgold focused on the potential for mineralization between the existing pits and to the north and northwest. A total of 105 RC holes and four core holes were completed at Relief Canyon by Firstgold in 2007 and 2008.
Firstgold recently re-evaluated the Lacana and Pegasus heaps and attempted to reprocess some of the heap material in late 2008 and early 2009 with little apparent success.
Photos:
| « Plomosas Mining Project | HOG Project » |