VANCOUVER, BRITISH COLUMBIA–(Marketwire – Oct. 18, 2011) - Further to the news releases on the high grade VG-cosalite-quartz-pyrite zones discovered by the Company on Cow Mt. reported by the company respectively on June 27, July 26 and September 13, Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the “Company”) reports the more significant intercepts of drill results conducted on Cow Mt. recently.

Highlights include (Table 1):

CM11-87

• 21.5 m (70.5 feet) of 9.97 g/T (0.291 oz/t) gold between 223.8 and 245.2 meters (734.1′ and 804.6′), host rock of the intercept include quartz veins, quartzite, phyllite and argillite
  • including 2.8 m (9.2 feet) of 52.0 g/T (1.516 oz/T) gold between 240.5 and 243.3 meters (789.0′ and 798.2′)

• 1.8 m (5.9 feet) of 7.30 g/T (0.213 oz/t) gold between 94.0 and 95.8 meters (308.4′ and 314.3′)
  • including 0.3 m (1.1 feet) of 39.0 g/T (1.137 oz/T) gold between 95.5 and 95.8 meters (313.2′ and 314.3′).

• 2.9 m (9.4 feet) of 4.36 g/T (0.127 oz/t) gold between 41.6 and 44.4 meters (136.4′ and 145.8′)

• 0.3 m (1.0 feet) of 92.0 g/T (2.683 oz/t) gold between 29.3 and 29.6 meters (96.0′ and 97.0′)

CM11-51

• 5.5 m (17.9 feet) of 2.39 g/T (0.070 oz/t) gold between 54.3 and 59.7 meters (178.1′ and 196.0′)

• 1.6 m (5.4 feet) of 1.26 g/T (0.008 oz/t) gold between 30.4 and 32.0 meters (99.6′ and 105.0′)

CM11-49

• 9.1 m (29.9 feet) of 1.74 g/T (0.051 oz/t) gold between 374.0 and 383.1 meters (1,227.0′ and 1,256.9′)

• 3.2 m (10.4 feet) of 7.79 g/T (0.227 oz/t) gold between 368.4 and 371.6 meters (1,208.8′ and 1,219.2′)

• 2.9 m (9.4 feet) of 2.20 g/T (0.064 oz/t) gold between 347.0 and 349.9 meters (1,138.4′ and 1,147.8′)

• 7.1 m (23.3 feet) of 1.16 g/T (0.034 oz/t) gold between 324.0 and 331.1 meters (1,063.0′ and 1,086.3′)

• 10.1 m (33.3 feet) of 1.25 g/T (0.036 oz/t) gold between 27.0 and 37.2 meters (88.7′ and 122.0′)

Drill hole CM11-87, part of the second newly discovered zone, was collared on Rainbow Zone at an elevation of 1,439.9 meters (4,724.0 feet). The significant intercept, 21.5 meters of 9.97 g/T gold between elevations of 1,281.6 and 1,266.3 meters (4,204.5 and 4,154.6 feet) above sea level, is below the bottom of the proposed open pit on Cow Mt., which is about 1,281.6 meters (4,316.0 feet) above sea level, and above the 1500 Level, which is 1,310.7 meters (4,300.0 feet) above sea level.

Drill hole CM11-49, 50 & 51 were collared at the same setup on Sanders Zone, which is part of the third newly discovered zone on Cow Mt. All the significant intercepts below 304.8 meters (1,000 feet) from the ground surface of drill hole CM11-49, are below 1200 Level but above 1500 Level.

The distance between the above two drill pads is about 313.9 meters (1,030 feet).

The significant intercepts cut by hole CM11-87 may not be the true width. The true width will be determined after assay results from drill hole CM11-88 at the same setup are received. Lengths of significant intercepts in drill holes CM11-49 & 51 may not be the true widths. True widths of the intercepts will be determined after additional drill holes are completed.

Drilling continues with four drill rigs operating on Cow Mountain and one drill rig operating on Barkerville Mountain. Results will be released as they become available.

Drill core processing included descriptive logging and sampling for geochemical analyses. The NQ & NQ2-size drill core was cut/split in two halves using saws and a splitter at the Company’s Lowhee Creek Compound in Wells-Barkerville, central B.C. One-half of the core is put in a sample bag. After all the samples are placed in the rice bags at the mine site, they are transported by BGM’s personnel to a shipping company in Quesnel for trans-shipment to Eco Tech Lab in Kamloops, B.C. Sample preparation and geochemical assaying is done at Eco Tech and ALS Labs respectively at Kamloops and North Vancouver, following their own internal standards for quality control and verification. The gold assaying method uses a standard fire assay with AA finish and a metallic gold assay for those samples with visible gold. ETL is certified under the Assayers Certification Program of B.C.

Since the mid-1990s the Company has focused on exploration and development of gold projects in the Cariboo Mining District in central B.C. The Company’s mineral tenures now cover over 1,147 square kilometers, encompassing seven past producing hard rock mines and three NI 43-101 gold deposits, including the QR Mine & Mill. The QR Property was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 kilometers by highway and all-weather road from the Barkerville Gold Camp. Mining operations commenced at QR in the first quarter of fiscal 2011 and the Company began pouring doré gold in September 2010. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. for relocation to the Barkerville Gold Camp near Wells, B.C. and upgrade to a 3,000-tonne/day facility subject to government approvals. In November 2010 the Company and the Lhtako Dene First Nation also signed a Project Agreement in relation to its Bonanza Ledge and Cariboo Gold Projects. The Company has not hedged any of its future gold production.

The technical information in this News Release has been reviewed and approved by Chief Geologist Jim Yin, PhD, P.Geo, a qualified person as defined in National Instrument 43-101.

On behalf of the Board of Directors

J. Frank Callaghan, President and CEO

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events and conditions and therefore involve inherent risks and uncertainties. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. All phases of the Company’s operations are subject to environmental regulation and governmental approval and permits and there can be no assurance that the Company will obtain all the requisite permits for future development. Mining is an inherently risky business with large capital expenditures and cyclical metals markets.

Read more here:
Barkerville Gold Mines intercepts 21.5 meters (70.5 feet) of 9.97 g/T (0.291 oz/t) gold including 2.8 meters (9.2 feet) of 52.0 g/T (1.516 oz/t) gold…

Spanish Mountain Gold (TSX-V:SPA) is located in central British Columbia and is a sediment-hosted gold deposit. The project is at an advanced stage and a preliminary economic assessment (PEA) was released in December 2010.
Read more here:
Grandich lauds board appointment at Spanish Mountain

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 1, 2011) - Goldstrike Resources Ltd. (TSX VENTURE:GSR)(PINK SHEETS:ADRAF)(FRANKFURT:KCG1) is pleased to report that initial rock samples from outcrop have returned up to 4.003 grams per tonne gold on its road-accessible OLIVER property located in the Yukon’s 7.6 million ounce Red Mountain-Dublin Gulch Gold District. This rock sample was also strongly anomalous in numerous other elements, including 6,560 ppm Cu, 1,247 ppm Pb, 1,744 ppm Zn, >100 ppm Ag, 102.1 ppm Ni, >2,000 ppm Co, >10,000 ppm As, 35.7 ppm Cd, 86.9 ppm Sb, >2,000 ppm Bi, >100 ppm Se, and >100 ppm W. The sample shows a strong intrusive signature and was taken in an area where a high-level stock of Cretaceous granite has formed tourmaline-matrix breccias, veins, and skarns in Hyland Group metasedimentary rocks. The Hyland Group is the same unit that forms the host rock at ATAC’s Osiris discovery, and government geologists have suggested that metasediments in the Red Mountain-Dublin Gulch area also have potential for Carlin-style mineralization.

In addition, a total of 24 reconnaissance soil samples from the Phase I reconnaissance program have returned significant anomalous gold values ranging from 15 to 50.7 ppb Au, including 5 samples between 30 and 40 ppb Au, and 6 samples between 20 and 30 ppb Au. The anomalous samples are widely distributed across the southwest, southeast, central and northeast parts of the property. Anomalous soils in the centre of the property are associated with an area of strong hydroxide alteration shown on a LandSat image. Approximately 100 additional claims have been staked based on these very encouraging Phase I results. A Phase II program is planned to include mapping, ground geophysics, and mechanical trenching, in preparation for drilling.

Goldstrike’s claims are adjacent to Golden Predator’s extensive Scheelite Dome property south of Red Mountain (best drill intersection to date 25.40 m grading 11.1 g/t Au). They cover four regional gold silt anomalies, and several active placer creeks. One prolific placer creek drains a newly discovered quartz-sulphide breccia that has been identified as a potential source of coarse, angular gold. The OLIVER property was first staked for tin in the 1970s, and drill intersections were reported grading more than 1% Sn over more than a core length of more than 4m, but gold was not assayed. A government study in 1992 demonstrated a strong correlation between gold and bismuth, and suggested that bismuth can be used as a pathfinder for gold in this area.

Goldstrike has completed the first pass exploration programs on most of its 24 Yukon gold properties to date, and expects to report a steady flow of news as significant results become available.

The technical data in this news release has been reviewed and approved by Trevor J. Bremner, P. Geo., who is a qualified person as defined in National Instrument 43-101. For more detailed information on these properties, refer to Goldstrike’s web site at www.goldstrikeresources.com.

ON BEHALF OF THE BOARD

Reimar Koch, President

Read more here:
Goldstrike discovers intrusive related gold mineralization in Yukon

Significant results include:

• SPT11-027 with 42.67 m of 100.25 g/t silver from a depth of 67.05 m
• SPT11-031 with 7.62 m of 104.2 g/t silver from a depth of 4.57 m; and 6.1 m of 111.75 g/t silver from a depth of 44.19 m
• SPT11-034 with 27.43 m of 96.5 g/t silver from surface
• SPT11-035 with 13.72 m of 134.78 g/t silver from a depth of 38.1m

A complete table of results and location map can be found on the Company’s website at (http://www.silverpredator.com/documents/SPD-NR11-09-Taylor-Results-Aug-17-FINAL.pdf).

The Taylor Project
The Taylor silver deposit is an epithermal, high-silica, low-sulfide replacement deposit hosted by folded and faulted Devonian carbonate rocks of the Pilot Shale, Guilamette, and Joana formations intruded by Tertiary rhyolite dikes and sills. The Taylor property includes a NI 43-101 compliant resource consisting of 1,123,000 tonnes of 85.71 g/t silver measured mineral resource, and 4,712,000 tonnes of 77.83 g/t silver indicated mineral resource totalling 14.9 million ounces contained silver; along with an additional 1.9 million ounces silver from an inferred mineral resource of 687,000 tonnes grading 87.1 g/t silver using a 41.1 g/t silver cutoff grade: (Hester, 2010).

The Company’s Taylor Project includes rights to a 1,320 ton per day mill with flotation and cyanide leach plants, water rights and approximately 3,900 acres of mining claims located near Ely, Nevada

2011 Drill Program
The 2011 drilling program extended stratabound silver mineralization to the northeast of the currently defined resource and extended the mineralization at depth and along strike in the Bishop and Argus pit areas. Notably, holes SPT11-026 and SPT11-027 both bottomed in mineralization. The Company plans to remodel the existing data on Taylor, to assist in future drill programs with the goal of preparing an updated resource estimate in Q2, 2012.

The next phase of drilling will concentrate on extending the stratabound northeast zone as well as testing feeder structures beneath the Argus and NE pits. In addition, the Company plans to conduct first phase drilling of the Chipps and Antimony Pit prospects, both of which feature jasperoid hosted gold-antimony mineralization lying adjacent to the existing silver resources at Taylor.

The Chipps deposit was drilled by Alta Gold and Nerco in the early 1990’s and a small, non-NI 43-101 compliant resource was defined by over fifty shallow RC drill holes. The gold occurs at the contact between the Joanna Limestone and the underlying Pilot shale, the same host rocks as seen at numerous mines in east-central Nevada including Bald Mountain, Easy Junior and Pan. The favorable horizon for the jasperoid hosted silver deposits at Taylor has not been tested at the Chipps and Antimony prospects, and may host additional mineralization beneath the gold bearing stratigraphy.

Sampling Methodology, Quality Control and Assurance
Samples were analyzed by ALS Chemex in Reno and Elko, Nevada. Refer to the Company’s news release dated July 5, 2011 for a complete discussion of sampling methods, quality control and assurance.

David R. Hembree, PGeo, Nevada Exploration Manager, is the Qualified Person as defined under National Instrument 43-101, overseeing Silver Predator’s Taylor exploration programs and has reviewed Information presented on QA/QC procedures and technical aspects of the drilling results in this press release.

About Silver Predator Corp.
Silver Predator Corp.’s corporate mandate is to explore and develop commercially viable silver resources in the leading silver districts of Yukon, Canada and Nevada, USA. Working within stable geopolitical jurisdictions, Silver Predator is focused on silver-dominant bulk tonnage and/or high grade opportunities. Proven management plus access to unparalleled geological talent in the Yukon and extensive experience in Nevada provide the ability to maximize shareholder value from the quality asset base.

Read more here:
Silver Predator cuts 42.67 m of 100.25 g/t silver at Taylor Silver Deposit, Ely, Nevada

Stock in the tiny company rose as much as 24% on triple the usual volumes on the news bringing its gains for the year to over 72%. Silver Falcon said it will now switch focus from processing the old tailings and commence with exploration activities now that weather inaccessibility is no longer a problem.

Press Release:

Silver Falcon Mining Inc. proudly reports that on July 28th, 2011, The Company smelted 14 lbs. of super concentrate which resulted in its first 555 grams (approximately 17 troy oz.’s) of Bullion Dore that was cast and taken to a secure location for later shipment and sale to an overseas refinery. This marks completion of the commissioning of its Diamond Creek Mill facility in Murphy, Idaho and the start of regular production of Gold and Silver ingots as revenue producing material. This is a milestone for the Company, as well as for the War Eagle Mountain area, which last reported precious metal smelting occurred over 100 years ago.

The first Bullion Dore produced weighted 555 grams with a 65% Gold (Au) and 35% Silver (Ag) content (view picture at www.silverfalconmining.com ). Smelting will now continue on a regular basis and receipts from the refinery will be added to SFMI’s revenues and reported in their filings of 10-Qs and 10-Ks. Once the Company’s smelter building has been completed and other equipment installed, SFMI will be pouring 40 lbs Bullion Dore bars.

Given the success of the Diamond Creek mill, management has decided to expand its size, both in the actual footprint and the production line. Efforts are underway to find and acquire a larger ball mill to be installed in tandem with the existing production line, as well as another “Falcon Concentrator” which will allow SFMI to more than double production in the next twelve months.

“This pour was a very exciting and invigorating event for all of us involved in the managing and working of the Diamond Creek Mill. I know the deep seated satisfaction felt by every one of our employees as they realize that their combined efforts made this success possible and I wish to thank them from the bottom of my heart,” said Pierre Quilliam, CEO of SFMI.

He further stated, “I also take the opportunity to thank our shareholders whose confidence and support allowed us to go forward in this endeavor. As I related before, the mill circuit, as configured, will allow SFMI to create capital from the sale of Bullion Dore, as well as ready the whole production line to handle prime ore from the underground veins of War Eagle Mountain. Our near-term efforts include augmenting our production capacity to produce more gold and silver from the old workings on War Eagle Mountain and our long- term efforts go towards the identification and the extraction of the ore bodies inside the mountain.”

About Silver Falcon Mining, Inc. SFMI has mineral rights to approximately 2,000 acres on War Eagle Mountain in southern Idaho. Its Diamond Creek Mill is situated at the foot of War Eagle Mountain and is serviced by 6.2 miles of paved roads from State Highway 78. It maintains year round access to the Sinker Tunnel which will facilitate underground mining of the rich veins crisscrossing the mountain. The Company employs from a local and skilled mining oriented workforce.

Image of War Eagle Mountain courtesy of the company.
Read more here:
Silver Falcon stock jumps 24%, pours first gold from War Eagle Mountain in over 100 years

By Brian Sylvester

Armed with a degree in geology, Silver Spartan LLC Founder Paul Dockweiler in 2003 got himself invited to explore in a mineral-rich area of southwestern Nevada that was falling out of favor because the price of gold barely covered the cost of production. As Paul explains in this exclusive interview with The Gold Report, a lot of virgin ground with the same mineralogy as a past-producing mine had never even been drilled and, of course, the gold price has since marched up fivefold.

The Gold Report: Even though you’ve been in the field for only about 10 years, you’re running a geological consulting firm based in the biggest gold-producing state in the U.S. Tell us a little about yourself and how you became a geological guru in Nevada.

Paul Dockweiler: I am not a geological guru, just a geologist working on a good project. While I was still in high school, my dad showed me an article on Mr. Chuck Fipki, a geologist who was first to discover diamond-bearing kimberlites in Canada. I remember the photo of the group associated with the project who became millionaires.

TGR: So that inspired you?

PD: Yes. I went to Michigan State University, studied geology and graduated in 2001. In 2003, Steve Craig, a geologist who’s quite well known in the mining industry, invited me to work at Mineral Ridge for Golden Phoenix Minerals, Inc. (OTCBB:GPXM), about four hours northwest of Las Vegas. Part of my job was to find more gold and silver but, unfortunately, the price of gold was not as high. Our way of heap leaching wasn’t the most effective way to process the ore, so the operation didn’t survive.

Afterward, with the backing of an independent group, I was able to go out and claim all these areas that I had studied the previous two years, and that is how Silver Spartan LLC, eventually, came to be. I’ve been utilizing the skills and things I learned out on the hill ever since (Editor’s Note: this “hill” reaches an elevation of 5,600 feet).

TGR: Apparently, Golden Phoenix was on the verge of bankruptcy in 2008; but it has come back to life and now has a joint venture (JV) going on Mineral Ridge. That’s near Silver Peak, Nevada—region where about 500,000 ounces (500 Koz.) of gold were mined between the mid-1800s and about the 1940s. Do you recall the gold price when you started mapping that area?

PD: It was hovering at around $350/oz.

TGR: Did you even dream of anything like $1,500/oz. gold at that point?

PD: No. We heard stories of when the price of gold hit $800/oz. in 1980, and we could not imagine the heyday that must have been. We hoped the price of gold would climb up so that we would be profitable. It cost us so much to produce an ounce of gold at the time that, when the gold price ranged from $300–$350, the operation was not sustainable. Not many people foresaw such a high rise in gold as that which actually happened.

TGR: But with this ongoing bull run in the price of gold, how was Golden Phoenix able to claim almost an entire past-producing district?

PD: The company bought the Mineral Ridge mine in the late 1990s, when it was essentially in foreclosure, so it already had the Mineral Ridge package. Around 2006, we were able to start claiming some of the satellite prospects around the mine. They were open; anyone could’ve picked them up. The price of gold was still low, however, and nobody was really looking out there at the time.

We were just kind of in the right place at the right time. We had a group of guys, including Sheldon Davis and my dad, which eventually formed a private company, Mhakari Gold Corp. They were the ones who were backing me while I was out claiming these showings. We put claim anywhere I noticed a structure, trend or actual outcropping mineralization.

TGR: What catches your eye as a boots-on-the-ground geologist when you’re walking around such areas? What did you see that makes this area prospective for gold and silver?

PD: Well, there are probably a lot of answers to that question. Because of the geologic model there, you can walk around and find high-grade intrusions of quartz, sometimes pretty small, and see the minerals associated with a gold-and-quartz mineralized system. It’s not too difficult when you can key in on the specific structure and understand how the geologic model works. When you see the model in one area, it opens your eyes to more evidence of the model as you walk around. Once you start to see it here and there, you notice things you might not ordinarily notice. Mineral Ridge is full of that evidence.

TGR: So, you saw mineralized granite intrusions outcropping at the surface?

PD: More specifically, the granitic intrusions brought with them these mineralized quartz bodies. At one time, when that quartz was in solution in the granite, it was going around as a heated solution, picking up metal, similar to the way water picks up metal from plumbing in your home. When that quartz found a hollow spot in a country rock or maybe in a detachment fault space, it would stop, cool off and solidify. As a result, metals, including gold and silver, would then precipitate out.

TGR: Fascinating. Have you taken some of those surface samples to have them assayed?

PD: Yes, actually my father, and others who are not trained geologists, took a majority of the samples as I was mapping and claiming the area. From this effort, we were able determine where mineralization was highest. This is important to note, as these samples were not high-graded but were more or less randomly chosen along the surface workings and road cuts.

TGR: What were some grades that came back from some of those assays?

PD: Around the Vanderbilt Silver and Gold Project, in particular, which is adjacent to Mineral Ridge property, the average assay value for the Vanderbilt Project was at that time over 3 grams per ton (g/t) Au and more than 70 g/t Ag. On two occasions, the assay value reached 2.4 oz. at 74 g/t Au and 70 oz. 2,173 g/t Ag. This was encouraging as the samples were randomly chosen at the surface.

TGR: Is the type of mineralization you’ve encountered more conducive to open-pit or underground mining?

PD: For the most part, this particular model is quite amenable to open-pit mining. A lot of the mineralization on the hill seems to be within the first 200–300 feet of the surface. There are exceptions, of course, some deeper deposits and maybe additional thrusting of other formations on top of some of these deposits. But once you’re in the metamorphic anticline, usually there is only 200–300 feet until you hit the granitic dome below.

TGR: That’s obviously cheaper than an underground mine.

PD: Probably several times cheaper in average costs.

TGR: Are these mineralized systems big enough to support a large open-pit operation?

PD: I don’t know that we can say that yet, we’re still in the grassroots—prefeasibility—stage. The beauty of the Vanderbilt and Coyote Fault is that we know there’s mineralization because we see it at the surface. It’s never been drilled, however, so we’re talking about completely virgin ground. These two projects have the same model as a well-established mine in Mineral Ridge, but have never had a drill intercept through them to show what mineralization is present. An exciting part of the project will be trying to prove underground what we see at the surface.

TGR: Another positive is the fact that you’re in mining-friendly Nevada, where roughly 80% of all U.S. gold mining is done. There’s a trained labor force and infrastructure.

PD: Absolutely.

TGR: So, Silver Spartan LLC, your consulting firm, works with a number of companies. Let’s go back for a moment to Golden Phoenix, where you started out.

PD: Golden Phoenix now owns 30% of the Mineral Ridge project in a JV with Scorpio Gold Corp. (TSX.V:SGN), which owns the other 70%. Mineral Ridge is fully permitted, and Scorpio is placing crushed ore on the leach pad to be in production in a few months.

TGR: But earlier you mentioned something about heap leaching not being particularly effective there. What’s the story?

PD: A lot of the gold and silver is encapsulated in other minerals, especially in some of the metamorphic rocks. In other words, sulfides cover up those gold and silver molecules within the rock. The rock itself is not very porous in a heap-leach operation; you wash the surfaces of these rocks but you do not get much permeation into this rock. In that regard, it comes down to your grind size—how much surface area can you provide for that rock? And how much of that will wash away with your leach? From my understanding, Scorpio has further studied the ore and is focusing on the grind size to adjust its recovery plant and, hopefully, realize a higher yield. Smaller grind size is the key to higher recovery. Reportedly, the last truly profitable operation to mine the deposit was milling the ore.

TGR: Who was that?

PD: I believe it was Sunshine Precious Metals—now a part of Formation Metals Inc. (TSX:FCO). I think into the mid-1980s, it was taking ore from the top of the mountain over to a silver operation called Sixteen-to-One, where it had a mill; reportedly, it was realizing up to 95% recovery.

Steve Craig, my mentor who brought me to Nevada, said that the gold ores of Mineral Ridge consist of quartz veins with submicron gold particles, which are the small gold particles that really need a fine grind to liberate. Steve wrote that the gold ores consist of quartz stock works cutting the metamorphic rocks both above and below the main quartz vein and as minor replacements of sheared rock. So, the quartz runs through the original country rock, in this case limestone, where it filled in cracks, crevices and open areas. Early operations extracted the gold by a combination of milling and a process using cyanide, which was a tried-and-true method of economically extracting gold into the early 1990s. The last profitably extracted gold ore was trucked to the nearby Sunshine Mill, which had earlier served the Sixteen-to-One silver mine

TGR: What’s Steve doing now?

PD: He’s vice president of exploration for Gryphon Gold Corp. (TSX:GGN; OTCBB:GYPH). He also spent 23 years with Kennecott, where he had been regional exploration manager for Nevada and California. Steve has a lot of experience as a mineral exploration geologist.

TGR: And he was your mentor at Golden Phoenix, which has emerged from the ashes, as it were, metamorphosizing into somewhat of a mining royalty play.

PD: The current management has done a good job of relieving some of the debt and getting Golden Phoenix back on its feet.

TGR: With the idea of securing gold and silver properties throughout the Americas and taking a percentage of any gold and silver mined?

PD: Yes. The royalty-mining model seems to be a good business model.

TGR: But until recently, there’s been limited extraction from the Mineral Ridge complex.

PD: Since then, three companies—including the original Golden Phoenix— attempted heap leach with cyanide without milling. The most they realized was around 60% recovery. At that rate, considering the low price of gold then and the high cost of producing an ounce, it just didn’t work. It’s a different story now that we’re looking at $1,400 gold. If you can produce it at $300/oz., you’re probably okay. So, even though heap leaching is not the most effective way to extract this ore, you can still make a considerable profit based on the price of gold today; plus, Scorpio CEO Peter Hawley has a record of taking a difficult operation and making it profitable. It is my belief, once the operation is fully up and running, a milling operation will become part of the plan.

TGR: Scorpio is in the first phase of a drill program at Mineral Ridge this year. Can you tell us a little bit about that program’s goals?

PD: I don’t know what Scorpio’s plans include, but number one is to find more gold and silver. Just last week, on April 12, Scorpio put out a release on the latest drill results, which look good. It was about 9.15 meters of 2.28 g/t gold. From what the press release said, I think that was even outside of the company’s pit area. It appears Scorpio is discovering mineralization throughout the property—not just within the area identified in a previous open-pit feasibility study. As long as it keeps drilling, I think Scorpio is going to keep finding more and more of this. What its goal would probably include is developing some of the known satellite deposits within the property. These local satellite gold deposits just need more development and I think they’re working on that, as well.

TGR: Any silver in the intercepts?

PD: There’s always silver in with the gold at both Mineral Ridge and in all of the other deposits on the mountain—anywhere from a 60/40 mix around the Mineral Ridge Mine, down to maybe 90/10 with silver being primary.

TGR: Another part of the goal in drilling is always to get a greater understanding of the deposit, the mineralized system and how it all works. Will you get a chance to get a look at that core soon?

PD: I’d like to. It has certainly been a good working relationship between Golden Phoenix and Scorpio, and I’d imagine some future data sharing and mutual study to benefit all parties. I don’t know that Scorpio’s core drilling, though. According to the latest press release, it has been conducting reverse-circulation (RC) drilling mostly to fill in the data gaps. The company knows it has mineralization at points A and C. It needs to put a drill hole in between at point B. You don’t need core for that; you can do it more affordably with RC drilling.

TGR: In addition to Mineral Ridge, Golden Phoenix is earning an 80% interest in the Coyote Fault Gold Project, which, essentially, is next to Mineral Ridge; in fact, some believe that Coyote Fault is an extension of Mineral Ridge’s mineralized system. Having studied the geology there, what’s your view?

PD: I am a believer that Coyote Fault is a major geologic structure on the mountain. A lot of the western-flanking deposits at the Mineral Ridge Mine are associated with that fault structure. It also could be related to the nearby Silver Peak Caldera as a conduit for mineralization through epithermal veining. Coyote Fault was one of my areas of interest when we were claiming because I recognized that it continued on all the way through the entire mountain, and it was completely open from about the midway point to its northernmost extent.

TGR: You’ve also studied the nearby Vanderbilt project, which was once a producing mine, and where Golden Phoenix is also earning an 80% interest. Tell us a bit about what’s going on there and about its potential.

PD: Past producers are always great, high-value targets—especially when those past producers quit sometime in the early 1900s. Combine that past-producer status with the mineral showings we’ve found in outcroppings and some of the numbers we’ve gotten back from sampling underground workings, and we see a lot of potential. By the way, Vanderbilt likely still stands as the second-largest producer of silver and gold in the district, behind only the Mary Drinkwater Mine, which is on Mineral Ridge.

TGR: So, what’s next?

PD: Put a drill rig out there and start proving a resource. The surface evidence certainly tells us something’s going on and we are planning to find out. The real attraction is that this property has never been drilled.

TGR: When will drilling get underway?

PD: Golden Phoenix is planning to drill this summer. Right now, we’re putting all the data together with a pre-drilling study; that way, we know when we do put a rig out there, we’re testing effective targets. It is very expensive to drill, and drilling can be the best thing or the worst thing for any project. We want to take our best shot when we put that initial drill hole in the ground; we want to hit gold and silver. Once we get the data together and the maps in place, we’ll be ready.

TGR: The potential of what’s going on at Mineral Ridge and these nearby properties has presumably drawn some interest from other companies. Who’s been exploring in the area?

PD: I’m sure a number of prospectors are out looking. Some claims in the area have shown up and dropped within the same year. Right now, I think Mhakari is probably the number-one company still looking and exploring.

TGR: That’s the Nevada-based company that’s vended the 80% interest to Golden Phoenix. Who’s involved in that?

PD: Mhakari Gold is a private Canadian-based company led by Sheldon Davis with a U.S. arm. A number of us are involved in Mhakari, including my father, Ron Dockweiler, and myself.

TGR: Your father explored in this area back in the 1990s, didn’t he?

PD: No. He was always interested in the mining juniors, but I was the first Dockweiler to step foot in the district. In the 1990s, he was talking to different junior miners and trading their stocks. That’s where I first gained my interest in exploration geology. As a part of Mhakari, he has come out and helped directly since I started claiming and mapping.

TGR: One characteristic of the junior mining sector is that a number of companies can rise together when they’re involved in an area play. Could this be the early stages of an area play near Silver Peak?

PD: I think it is becoming one, especially compared to my experience in 2005 when no one had any interest in the area. Scorpio and Golden Phoenix are doing a great job managing these properties and creating outside interest as a result. They’re coming out with positive news releases and increasing their momentum. Scorpio is planning to produce soon. The fact that three mining companies tried and failed in the past maybe gave the mountain a bit of a black eye, or made it a pariah in the eyes of the mining industry. But that is only the history; recent developments have changed that perception. From what we have discussed, you can see I am very positive on the potential of the mountain. We now have an opportunity to take it from good potential to a proven resource.

TGR: And $1,400 gold provides a bit more margin for error.

PD: Exactly.

TGR: Thank you so much, Paul.

Paul Dockweiler, who holds a geology degree from Michigan State University, is the founder of consulting firm Silver Spartan LLC. He previously worked with Geologist Steve Craig at Mineral Ridge.

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DISCLOSURE:
1) Brian Sylvester of The Gold Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Gold Report: Golden Phoenix and Scorpio Gold.
3) Paul Dockweiler: I personally own shares of the following companies mentioned in this interview: Mhakari (private shares) and Golden Phoenix (indirectly through family holdings). I personally am paid by the following companies mentioned in this interview: Golden Phoenix (as a consultant only). I am not paid to promote these companies, nor do I trade their stocks.

Streetwise – The Gold Report is Copyright © 2011 by Streetwise Reports LLC. All rights are reserved.
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Paul Dockweiler: right place, right time

Thunder Mountain will have access to Newmont’s datapackage containing important geochemical, geophysical and  drilling data in the project area. Upon successfully defining an economic mineral resource, Newmont will have the option of entering into a joint venture agreement with Thunder Mountain, or sell the land needed for development to THM while retaining a 3% net smelter return.

According to management, the company currently has US$0.3 million in cash; 1.25 million warrants have met their call back provisions – indicating the company can raise up to $0.25 million if all of these warrants are exercised. Management expects to pursue an equity financing shortly.

To read the full press release click here

Image by Thunder Mountain Gold
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Thunder Mountain Gold signs exploration agreement with Newmont to advance the Trout Creek Project in Nevada

One company that appears to be on the move to becoming that next big producer is Spanish Mountain Gold Ltd. (SPA-V).

The company released a preliminary economic assessment (PEA) on November 24 and metallurgical work is approaching pre-feasibility, says CEO Brian Groves, who gave an update on the project at last week’s Roundup event in Vancouver.

Located about 70 kilometres northeast of Williams Lake near the village of Likely, the Spanish Mountain property is within the Quesnel Terrane geological formation. The disseminated and vein-controlled gold mineralization is contained within several statigraphically and structurally controlled zones.

The deposit was first traced to the discovery in 1921 of placer deposits above Cedar Creek. Exploration has until recently focused on vein-hosted occurrences; in the late 90s, attention turned to bulk-mineable deposits.

About $50 million has been spent exploring the property, with 428 diamond drill holes completed between 2004 and 2009. According to the PEA, the deposit contains measured and indicated resources of 77.374 million tonnes of gold graded at 0.53 g/t, and 39.531 million tonnes of gold graded at 0.47 g/t, assuming a 0.2 g/t gold grade cutoff.

The mine plan envisions an open-pit design using conventional trucks and shovels. It would produce an average 213,800 ounces of gold per year at cash costs of US$570/oz. for its first five years of operation, and 172,400 ounces at US$625/oz. throughout its 10-year mine life. The strip ratio is 1.97:1. The gold would be processed using conventional grinding and flotation methods.

The PEA says the project has the potential to yield a pre-tax net present value of $209 million at a discount rate of 5%, with an internal rate of return of 14.7%.

Spanish Mountain is looking at an initial capex budget of $382 million, or $460 million over the 10-year course of operations.

“It’s a manageable size with potential to generate significant cash flows of $100 million a year,” says Groves.

Importantly, Groves noted that the PEA used a “very conservative” gold price of $950/oz. for the pit shell. If the gold price is bumped up to $1100/oz, it would increase the mine life by three years. New PEA numbers using the higher gold price should be available by the end of February.

Taking a lesson from the Canadian government’s recent rejection of Taseko Mines’ Prosperity project, Spanish Mountain Gold has revised its tailings management plan so that no bodies of water or streams will be impacted by mine waste — a decision that will add $11 million to the capex budget, Groves said.

Spanish Mountain Gold is working towards pre-feasibility in the second quarter of this year and feasibility in the second half of 2011. The company’s stock closed at 61 cents on the TSX-V at the end of Friday’s trading.
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Spanish Mountain Gold moving towards pre-feas