Barrick Gold quits US mining project

17 May 2015 (Last Updated May 17th, 2015 18:30)

Barrick Gold's exploration partner Coral Gold Resources has announced that the company will end its mining project in Nevada due to budgetary constraints.

Barrick Gold's exploration partner Coral Gold Resources has announced that the company will end its mining project in Nevada due to budgetary constraints.

According to Coral, Barrick Gold will terminate an agreement to develop the Gold Ridge property located in Lander county, Nevada, US.

Coral Gold Resources president and CEO David Wolfin said: "While it's unfortunate that Barrick could not find room in this year's exploration budget to continue the programme, we are still confident that the Gold Ridge property maintains considerable exploration potential.

"We are still confident that the Gold Ridge property maintains considerable exploration potential."

"Hole RGR-0002D intersected 5ft of 34.4 g/t Au (1 oz/t) which could be an indication of a feeder zone, however, additional exploration is required to further understand the mineralised system."

Following termination of the deal, Coral said it will look for another partner with financial capability to advance the project.

Coral maintains 100% ownership of the Gold Ridge property. It said that the property has access to grid power, all favourable attributes for a mine site and is accessible through a paved road.

The Gold Ridge deep drilling in 2014 did not include offsetting the intercept in TV07-2, Coral's 2007 hole, which encountered anomalous Au values up to 2.19ppm.

A second pre-collared vertical hole should be located 1,200ft south of the first one and drilled to a 3,500ft depth.

The two holes are aimed at testing the potential for higher grade Carlin-type mineralisation in the lower plate rocks.

The Gold Ridge project area consists of 107 unpatented lode claims that are located along the western-most portion of the Robertson claim block.