MINING NEWS: Work planned for Gil, no budgets submitted yet

Patricia Liles

Mining News editor

Kinross Gold and its partner in the Gil project, Teryl Resources, plan exploration this year at the prospect some seven miles east of the Fort Knox gold mine and mill complex.

But exploration budget plans have not yet been finalized, according to Teryl’s president, John Robertson. He’s waiting to hear from planners in Kinross’ corporate office to find out what his company’s share of exploration spending at Gil will be this year. Kinross holds an 80 percent interest in Gil, and serves as the project’s operator. Teryl holds the remaining 20 percent.

“We just raised a million dollars, so we have the money for our part,” Robertson said, on April 30. “We’re anxious for them to give us a budget.” He was pleased to hear that Kinross, through its mine operating subsidiary Fairbanks Gold Mining Inc., plans to work at Gil and at other surrounding prospects this year.

In a letter submitted to the Alaska Department of Natural Resources outlining its reclamation work and bond pool, Fairbanks Gold said 2004 exploration activities will include soil sampling, trenching, core and reverse circulation drilling.

“The majority of work at the Gil Project will take place at the North and Main Gil areas. Sourdough Ridge and other prospects will garner less attention,” Clyde Gillespie said in the April 14 letter. “Exploration activities will also be conducted at Dark Hollow, Last Chance Creek and Fourth of July Hill.”

Details about 2004 exploration plans were not included in the letter. Gillespie wrote that the areas were included in original exploration applications and did not require an amendment to permit this year’s activity.

Last year, the joint venture spent about $1.6 million on Gil, Robertson said. That included 127 reverse circulation holes totaling 28,000 feet, 31 core holes totaling 8,917 feet, four trenches totaling 1,150 feet and 358 rock samples collected for assaying, according to an April 21 press release from Teryl.