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Evolving Gold's Rattlesnake Hills: Another Cripple Creek?
By Eric Pratt
MidasLetter.com
Thursday, April 23, 2009
Evolving Gold's (TSX.V:EVG) Rattlesnake Hills project is shaping up to be a sizable gold deposit that has got company president Dr. Quinton Hennigh excited. A recently completed re-assay program has increased the grade average from the last drilling program by 10 percent.
The metallic screen fire re-assay program increased the average grade of re-assayed intervals of gold mineralization by 10% to 0.96 grams per tonne (0.028 opt Gold) from 0.872 grams per tonne (0.025 opt Gold). The high grade intersections previously reported are 146.3 meters at 2.92 grams per tonne Gold (480 feet at 0.085 opt Gold) and 131.1 meters at 2.84 grams per tonne Gold (430 feet at 0.083 opt Gold) in holes 65 meters apart.
"The 10% increase in grade is particularly significant because it is seen throughout the large zone of gold mineralization." said Quinton Hennigh, Evolving Gold's President and Chief Geologist. "Our new drill program will expand our understanding of this gold system and will better define both the high grade mineralization and the geometry and potential for a large, open pit target."
The company has defined a zone of gold mineralization at the North Stock target approximately 450 meters long (1,480 ft), 200 meters wide (660 ft), and extending from surface to at least 550 meters deep (1,800 ft) where it remains open. It is also open to the west, east and south and may continue to the north as it wraps around the margin of the North Stock diatreme. Within this zone of gold mineralization 41.6% of all meters of core drilled by Evolving Gold fall within significant intervals of gold mineralization, defined as being at least six meters long with a grade cutoff of 0.25 grams per tonne Gold.
Similar gold mineralization has been intersected in the Antelope Basin target approximately 725 meters (2,380 ft) south of North Stock. Alteration patterns and structural features indicate potential continuity of gold mineralization between North Stock, Antelope Basin and South Stock, a further 250 meters (820 ft) to the south.
Prior to joining Evolving Gold, Quinton served as Senior Research Geologist with Newmont Mining. He has worked throughout North America, in Europe, Australia, Asia and South America with Newmont Mining[NYSE:NEM], Newcrest Mining and Homestake Mining (now part of Barrick Gold [NYSE:ABX]. He balances the pragmatics of business with bold innovation. He has spent years developing regional concepts for the exploration for buried gold deposits, particularly in Nevada. Quinton comes from a long tradition of gold seekers - his great-great grandfather followed the gold rush to Colorado in 1859.
The Rattlesnake Hills project is a volcanic hosted alkalic gold system analogous to Anglogold
Ashanti's [NYSE:AU] Cripple Creek project in Colorado, which has produced in excess of 20 million ounces of gold to date. Cripple Creek produces gold at an average grade of about 0.75 grams per tonne, and is Anglogold Ashanti's lowest cost producer.
According to Quinton: "We have a suite of 10 properties - 8 in Nevada, one in new Mexico but our flagship property is in Wyoming. These are all properties I believe have million ounce plus potential, and are all properties I've worked on in the past, either with Newmont or Newcrest over the last 15 years or so.
They are deposit types that typically have favorable economics, for example Rattlesnake is a gold system whose nearest analogue would be the cripple creek deposit in Colorado where Anglogold is producing gold at grades of about 0.75 grams per tonne, and it is the lowest cost producer in the company.
Right now we are focused exclusively on Rattlesnake, as it is the property that I think has the most value. Its our 'bird in the hand'. We completed a drill program last summer that basically has given us indications that this could be a very sizable system.
Timeline to Production
Wyoming is one of the best jurisdictions for mining according to the annual report issued by The Fraser Institute. In fact, scored second only to the province of Quebec in terms of best mining permitting deposit.
"I think there's a niche that needs to be filled in terms of mid-tier gold producers, and I think Rattlesnake Hills is a company maker that would let Evolving Gold fill that niche perfectly.
Evolving plans to have three core rigs on site by late April or early May in a program to drill 30-35 drill holes for a total of 12,000-15,000 meters of drilling.
"Unlike last year when drill rigs and experienced crews were tough to find, this year, because of the recession, drill rigs are a little easier to come by," said Bob Barker, Evolving Gold's CEO.
We've also been promised faster turnaround times on our assay results. The slow turnaround last year was frustrating for us, and I imagine for our shareholders as well. We're optimistic that this year we'll get our results from the labs much more quickly."
It has been a tough year for the stock market in general and junior exploration companies in particular. "Of course we'd like Evolving's shares to more fully reflect the value of what we believe we've discovered on our Rattlesnake project. However, the fact is that with about C$17 million in our treasury we have more than enough money to complete this year's multi million dollar drill program."
Dr Barker spent the last 20 years in senior management positions with major mining companies: 14 years with Newcrest Resources, Inc. as General Manager, American Exploration. He has also held exploration leadership positions with Homestake Mining Co. and Amax, Inc.
Learn more online at http://www.evolvinggold.com.
SOURCE: http://www.midasletter.com/news/09042306_Evolving-golds-rattlesnake-hills-another-cripple-creek.php
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Gold Mining and Exploration
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