NEW YORK -- St. George Metals Inc., Houston, said it has located new gold reserves at he previously worked Dean mine in Nevada.
Announcement of the find would seem to run counter to a decision last month by Reynolds Metals Co., Richmond, Va., to pull out of a joint exploration program with St. George. Reynolds said it was terminating its joint-venture agreement because no proven gold reserves had been located.
An idenpendent consulting firm recently identified one ore zone at the site as containing 6,300 tons of proven reserves grading 0.9 ounce of gold per ton on an average, the company said.
St. George and Reynolds had been exploring the site for several years by means of bulk sampling and surface drilling. Underground work has included reopening old adits and reworking closed haulage drifts.
The company said it is currently considering construction of a pilot ore processing facility at the property and is considering additional financing measures, including a search for a new partner.
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