|
Gold was first discovered
at Hog Ranch in 1980 by Noranda Exploration, Inc.
Noranda geologists were led to the area by an
airborne radiometric survey of northwestern Nevada
during a 1979 uranium reconnaissance program.
No significant uranium occurrences were found
but anomalaous gold concentrations were discovered
in the Bell Springs area. By 1981, Noranda
had extended their claim holdings across the northern
part of the Hog Ranch area and had drilled out
a small gold resource at Bell Springs. Ferret
Exploration Company, Inc. assumed operation of
the Hog Ranch project in 1982 and proceeded to
discover and drill out gold resources in the northern
part of the Hog Ranch area and at Bell Springs.
Exploration activities by various owners through
1986 focused exclusively on open-pit deposits
amenable to heap leach processing. In 1986
Western Goldfields commenced mining activities
at Hog Ranch. In 1988 Western Mining Corporation
purchased Hog Ranch and continued mining until
1993. The mine has been shut down since
1993 and final reclamation activities by Western
Mining have been largely completed. From
1986 through 1993 Hog Ranch produced gold from
8.5 million tons of ore from six separate deposits
with an average grade of 0.036 ounces of gold
per ton.
Exploration activities by previous owners at
Hog Ranch focused exclusively on open pit resources
amenable to heap leach processing. At least
2,640 holes were drilled at Hog Ranch, of which
only 247 were drilled as angle holes and only
65 were drilled to a depth greater than 200 metres.
A high percentage of these deeper inclined holes
were in exploration areas away from the productive
deposits. The vast majority of the drilling
was vertical holes focused on the delineation
of disseminated low-grade open-pit reserves.
Of key interest, however, are several holes that
were drilled beneath two of the six known deposits
(Geib and 139 deposits) and along their strike
extensions which intersected values up to 5.7
ounces of gold per ton. Issuer geologists
believe that the unrealized opportunity at Hog
Ranch rests with high-grade gold mineralization
associated with the high-angle, structurally-controlled
feeder zones.
In early 2001, Seabridge initiated an eight hole
diamond core drilling program to test for the
potential of a high-grade underground gold deposit
similar to the nearby Midas and Sleeper mines.
The program successfully confirmed all the necessary
conditions for such a deposit. High-grade
gold intercepts from two different structures
intersected in the drilling may represent the
discovery of the upper levels of such a deposit.
Results from the first five holes included assay
results of up to 19.9 grams of gold per tonne
within a fracture and vein zone.
Observations of the core from the recent program
have enabled Issuer geologists to reinterpret
previous data and conclude that: (1) alteration
has the scale (seven by eight kilometers) and
intensity similar to other major deposits in northern
Nevada; (2) the gold has been concentrated in
specific, identifiable structures which have significant
strike and down-dip potential; and (3) previous
open pit mining was in the very top of the mineralized
system, leaving the higher-grade potential intact
and below the level of previous workings.
A further program has been recommended to test
for the higher grade ‘boiling’ zone
which evidence suggests should be below the intercepts
from the recent program.
|
