Sagebrush Gold, a junior gold exploration firm focused on high-value targets, announced acquisition of the Relief Canyon Gold Project, a choice property located at Packard Flat in the Antelope Springs mining district of Pershing County.
Chairman of SAGE, Barry Honig, was excited to announce an aggressive exploration campaign, starting with resource studies and the satisfaction of applicable permits/approvals (including federal and state permitting and bonding requirements) via local authorities and the BLM (Bureau of Land Management), and culminating with a focused, intensive drilling program engineered to both expand the resource and deliver on near term production goals.
The site has quite a history of previous infrastructural investment and considerable heaped ore to process, but was mothballed in 1990 due to sagging gold prices, after a decade or so of operation yielding some 100 oz Au under the previous operator Pegasus Mining. The operation was running at an average rate of 2M ton/year, pulling down an average 0.03 opt AU and facilities are currently in place to initiate heap leaching. Hsitoric heap recovery was in the 60-70% range and with clear geological potential in the unexplored areas of the property, SAGE feels confident that the Relief Canyon site will emerge on the forefront of the Company’s near-term and long-term production profile.
A prime location with abundant potential to expand the resource due to largely unexplored territory in what is prime mineral acreage, the east side of Packard Flat, underwritten by the June 2010, NI43-101 compliant resource estimate (9.252M tons total ore at an avg. grading of 0.017 opt), makes the Relief Canyon a strong addition to the Company’s portfolio of gold exploration properties.
Let’s dig a little deeper into the millsite infrastructure, ore base on-hand and resource estimates from the NI43-101:
• As mentioned the site has rather good existing leaching facilities with five heap leach pads (portable conveyors with a radial stacker) and two solution ponds (full pipe/pumping systems), as well as a cement block-constructed ADR solution processing circuit (Adsorption- Desorption-Recovery)
• Ancillary structures, including the mine office and a warehouse stand ready
• The ADR plant is a carbon four-column setup with acid wash, stripping vessel, electrolytic cells, furnace and retort for gold doré production all in the original Pegasus building
• A full crushing system, initially intended to reprocess heap material, with primary and secondary components is in place and overall heap recovery has solid historical values
• Some 200k tons of crushed/stacked leached ore and a healthy 7M tons estimated in existing heaps means that SAGE’s near-term production goals will be easy to meet
• Indicated Resource of 6.533M tons at 0.017 opt Au (113k oz Au, 0.005 opt cut-off)
• Inferred Resource of 2.719M tons at 0.015 opt Au (42k oz Au, 0.005 opt cut-off)
Exciting news considering the recent announcement of the formation of a Pan Asia Gold Exchange, which will see six of China’s top banks coming together to form a government-backed Asian alternative to the COMEX, featuring RMB-denominated contracts.
More information on the acquisition, The Relief Canyon Gold Project and details of the NI43-101 report can be found at the Sagebrush Gold, Ltd. website: www.SagebrushGold.com
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