Exploring Between Drill Holes Yields New Ounces At Goldstrike

The cluster of gold deposits at the Goldstrike property is located in the Northern Carlin Trend in northeastern Nevada (Fig. 1). At many mature mining camps like Goldstrike, exploration innovation and success may wane with time. In this regard, sufficient exploration drilling was conducted in the area immediately north of the ultimate pit crest and under the final planned pit wall to test for a major deposit. No indications of large deposits were found, however, the majority of drill holes did intercept mineralization. Mining along the northern pit wall exposed significant structurally controlled ore-grade mineralization that had been missed by exploration drilling. In 2002 and early 2003, the mine geology group added reserves to the pit and improved the definition of underground resources by targeting specific ore-controlling structures within favorable stratigraphic units by utilizing relatively inexpensive horizontal RC drilling from the pit wall. The widespread occurrence of mineralization to the north of the pit was re-interpreted to be an indication of continuity of these mineralized zones. In January 2003, 70 feet of 0.332 opt Au at a depth of 710 to 780 feet was intercepted in a dewatering well. This intercept was significantly thicker and higher-grade than average for the area, which confirmed the existence of high-grade structural continuity, and helped secure management support for additional exploration. A timely and cost effective solution was needed to confirm the potential of the area. Immediate follow-up drilling on tighter grid spacing was rejected in favor of improving the geology model. Exploration across the property would benefit from an improved geology model, but to provide results in a timely manner, the area to the north of the Betze pit was chosen as a starting point (Fig. 2).