In 2000, Greystar carried out a limited program of surface testing of potential targets defined by study of structural data. The field truthing was very successful, and it showed that the target definition process works.
A program of 20,000 meters of drilling is proposed for testing in-fill and higher grade targets. The precise location of the drilling as well as the sequencing will be influenced by the results from the surface and underground geological work. Development work on the 2800 meter level will be started to allow testing of many of the down dip extensions of high grade structures in three strong veins (#29, 12, and 13) on the Angostura Project. A total of 1800 meters of drifting and crosscutting is planned.
The cost of Phase 1 is estimated at US $3.5 million.
DEFINITION PROGRAM – Phase 2
All the work done to date suggests that there is good potential for discovery of additional higher grade shoots. This was apparent in the 1999 program as targeted drilling using 41 drill holes gave rise to a 7% increase of grade to the known resource base, thus supporting the expectation that successful drilling of selected targets will have a significant positive impact on the grade and increase the gold resource.
The definition program will follow completion of Phase 1 scoping work. A total of 42,000 meters of diamond drilling is projected for the Phase 2 Program. This program will provide the necessary sample density to advance the resources into a reserve category.
During this phase of the program the underground workings will provide samples for the metallurgical program.
Phase 2 is estimated to cost US$7.3 million.
FEASIBILITY STUDY – Phase 3
The feasibility study will be primarily carried out in months 16 to 20 of the program. In order to be in a position to complete the study on time, data collection will start at the beginning of the program. Base line studies are proposed to begin in month 3 of the program, and metallurgical work in month 7. No assurances can be given that drilling results and other factors will lead to a positive feasibility study.
The cost of the feasibility study is estimated at US$3.2 million.