(Kitco News) - Gold Terra Resource (TSX-V: YGT) today reported the initial mineral resource estimate (MRE) on the Con Mine property, located adjacent to the company’s 100% owned Yellowknife City Gold (YCG) project in the Northwest Territories.
According to a press-release, the Con Mine initial MRE comprises underground Indicated Mineral Resource of 0.45million tonnes averaging 7.55 g/t for 109,000 ounces of contained gold, and Inferred Mineral Resource of 2.0 million tonnes averaging 6.74 g/t for 432,000 ounces of contained gold.
Chairman and CEO Gerald Panneton commented, “This initial MRE confirms the significant high-grade potential of this project as it remains open for further expansion in all directions, and along its 6-kilometre-long structure. The Con Mine produced more than 5 million ounces of high-grade gold (16 g/t Au) from the Campbell Shear structure on 2 kilometres of strike length alone.
“We strongly believe that additional drilling along strike and at depth will continue to expand the current MRE, as all the surface drilling so far has been very successful. The company has spent approximately $6.2 million for an approximate cost of $12 per ounce of gold to date.”
The company said that the Con Mine is under option from subsidiaries of Newmont Corporation and acquirable by the company upon fulfillment of certain conditions set out in the option agreement.
In addition, the company has 1.2 Moz inferred resources on its adjacent 100% owned YCG property. The YCG project encompasses 800 sq. km of contiguous land immediately north, south and east of the City of Yellowknife in the Northwest Territories.
Gold Terra is currently focusing its drilling on the prolific Campbell shear, where 14 Moz of gold has been produced, and most recently on the Con Mine Option claims immediately south of the past producing Con Mine (1938-2003).
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