Vannessa Ventures which is exploring its Marudi concession in Region Nine says it is making new tests that may lead to the development of an underground mine that would fully exploit the site's gold reserves.
In an October 13 press release the company had mentioned that "drilling is ready to commence.
This programme originally scheduled for earlier in the year was delayed by a decision to increase the project scope and by the onset of the rainy season. The expanded project now involves re-logging of existing core, re-evaluation of all prior data and surface mapping in addition to the 2,500 meter drill program. Through its 100 percent owned subsidiary, Romanex (Guyana) Inc., the Company holds a 12,500 acre Mining License over the historical gold producing area surrounding Marudi Mountain and Mazoa Hill. Earlier diamond drilling has been focused on two areas of gold mineralization, Marudi Mountain and Mazoa Hill. The current programme will seek to expand the resource estimates of these areas and investigate other nearby high potential areas identified by geochemical anomalies and other exploration methods.
Stabroek Business spoke with Manager of Exploration and Development, Carl Caumartin who said the company had recently uncovered data going back several decades in records at the Guyana Geology and Mines Commission that suggested potential at the Peace Creek part of the reserve.
He says he is not convinced that previous tests were done thoroughly and as such the company would be drilling 50 new holes that test the potential of the concession. If it is then found that reserves run deeper than supposed then an underground mine would be a possibility. However, this requires a far more precise understanding of where the gold may be located than open pit mining. The company had previously planned on an open pit but it was thought this might leave up to half the reserves untouched. Caumartin said if the reserves are provable then a far larger mining operation would be devised although he could not give a timeframe for when mining would begin.
The release said, " A resource estimate completed by Kilborn Engineering Pacific in June 1995 on behalf of the properties former owner, Sutton Resources, identified measured and indicated resources of 320,000 ounces of gold at an average grade of 2.94 g/t gold at a 1 g/t cut off ratio plus 67,000 ounces of inferred resources at an average grade of 2.45 g/t again at a 1 g/t cut off grade. The Kilborn study deals only with the Mazoa Hill zone.
Marudi Mountain and the adjacent Paint Mountain areas hold the potential to host additional drill targets as is evident by the placer mining and other hand mining that has historically been carried out in the area."
The concession is located in the eastern portion of the Marudi Mountain, some 40 miles from Lethem in Region Nine. The gold mine plans to have an annual yield of 40,000 ounces of gold, worth US$1.5M. The investment of US$5M to US$7M is for a period of seven years.
The Environmental Protection Agency granted Vannessa a permit in September after the company said that no harmful substances or chemicals would be used in the mining or processing of gold. The mine would employ 97 workers.
Resident Manager James Stonehouse has since left the company and is working in Kazakhstan.