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MINING NEWS: Gold giant kicks rocks prior to JV deal Newmont Mining considers joining Gold Crest Mines in exploring western Alaska properties as March 30 due diligence deadline looms Shane Lasley For Mining News
Spokane, Wash.-based Gold Crest Mines Inc. has signed agreements with a subsidiary of gold mining giant Newmont Mining Corp. in which the companies propose to enter into two separate joint ventures to explore Gold Crest’s AKO and Luna gold properties in the Kuskokwim region of southwest Alaska about 90 miles east of Bethel.
Denver-based Newmont will be the operator of the proposed venture and can earn 51 percent in each of the properties by spending a minimum of $3 million by Dec. 31, 2011. The major has the option to increase its interest in either property to 70 percent by spending an additional $6 million before Dec. 31, 2015.
Ako property The Ako property consists of 45 State of Alaska mining claims totaling 7,200 acres staked in 2006 by Kisa Gold Mining, Inc., the Alaskan subsidiary of Gold Crest Mines.
Gold Crest Mines’ vice president of exploration told Mining News, that “Ako is likely similar to other Kuskokwim and Tintina Belt mineralized intrusive systems such as Shotgun, Fort Knox, Vinasale Mountain and others.”
The company uncovered several targets with an airborne magnetic and electromagnetic survey during the winter of 2006-2007. The airborne surveys focused on a geophysical anomaly near the center of the Ako claims that Gold Crest finds intriguing.
Based on the results of the airborne survey, the Spokane-based junior followed up with a detailed stream sediment sampling, prospecting and reconnaissance mapping program. Several mineralized zones were identified and the geologist completed soil grid and rock chip sampling of the areas.
Gold Crest geologists surmised that the mineralization at Ako is associated with several different types of alteration. “Field evidence suggests several ages of intrusive activity may be present,” the company said in a statement.
Reconnaissance work performed by a previous operator about 20 years ago discovered a large stream geochemical anomaly, but did limited follow-up work on the find. A few years later, USGS geologists completed additional stream sediment and pan concentrate sampling in the same area and published their results, indicating a large gold-bismuth-arsenic-antimony anomaly associated with the intrusion.
Luna property In early 2007 Gold Crest discovered gold stream sediments that coincided with what the company interpreted to be a favorable structural zone at the Luna prospect. Follow-up field work revealed a large area of silica-sulfide-clay alteration associated with this structure.
Last summer the company staked 50 state mining claims for a total of 8,000 acres, blanketing the area of primary mineralization of the Luna prospect. For the remainder of the 2007 exploration season, the junior completed 16 line-miles of induced polarization resistivity surveying and an additional 40 line-miles of ground magnetics, which outlined about six square miles of strong IP and magnetic responses. Follow-up mapping and prospecting turned up several gold-bearing stratiform sulfide replacement lenses. Rock chip samples have returned assay values up to 0.75 ounces per ton.
Newmont and others stake adjacent claims “We are pleased that one of the world’s largest gold producers has recognized the potential on our claim groups,” Gold Crest President and CEO Tom Parker said in a statement announcing the agreement.
Newmont has staked two more claim blocks contiguous to the Ako claim group and a large claim block adjacent to the Luna claims, according to Gold Crest.
A spokesman for the junior told Mining News that NovaGold Resources as well as another unnamed company also staked extensive claim groups in the area.
Gold Crest’s joint venture pact with Newmont is subject to a 30-day due diligence period by the major in regard to the properties. The companies said they will prepare, approve and execute definitive joint venture agreements. As of Mar. 27 neither company had announced a final decision by Newmont.
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