Winston Gold going underground at historic Montana gold mine

Winston Gold going underground at historic Montana gold mine

October 31, 2019 -- InvestorsHub NewsWire -- via Resource World Magazine -- After a recent injection of $1.6 million into its coffers, Winston Gold Corp. [WGC-CSE; WGMCF-OTCQB] is now breaking ground to advance two underground access tunnels to continue to explore its wholly-owned historic Winston Gold Mine in Montana.

The high-grade, past producing Winston gold mine is located just 37 km southeast of Helena, and is easily accessible by paved highway. What is becoming clear about this company is the fact that it has the potential to restart mining operations quickly and with minimal upfront capital.

The Custer Vein was mined sporadically between 1930 and 1955. High-grade gold mineralization was mined along strike for over 2,400 feet (732 metres) on five primary levels and reports estimate that only limited mining was performed below the water table which is situated at the 400 foot level (4,180 feet elevation).

Over the past few years, Winston Gold completed several drill programs that not only confirmed and expanded mineralized zones below the known workings of the Custer Vein but also delineated two additional, near surface, vein systems known as the Parallel and the Block 93 veins. 

The company's plan is to access and test mine the shallower Parallel and Block 93 vein systems. At the same time Winston intends to access and rehabilitate the old upper-level workings of the Custer Mine and sample the margins of the Custer vein for potentially economic gold mineralization.

The first tunnel, now dubbed Carrabba, is a brand-new access tunnel that is expected to extend for a total of 900 feet (274 metres) at a 1% grade and provide access to the high-grade gold mineralization identified in the Block 93 and Parallel veins. It is also anticipated to provide access into the historic Custer workings at the uppermost level of the old Custer Mine.

The second access tunnel, named Tunnel #1, is located about 1,500 feet (or 457 metres) to the northwest of the Carrabba portal. Tunnel #1 is a historic tunnel that will be widened and rehabilitated. It will access the old Custer workings about 1,000 feet (304 metres) northeast of where the Carrabba tunnel will break into the workings on the same level. Tunnel #1 was last used in the late 1970s and early 1980s to access the Custer workings to mine out sections of the vein to the surface. Tunnel #1 will not only provide free airflow for ventilation but also a necessary secondary escape way when test-mining of the Parallel and Block 93 veins commences. The secondary access will also provide Winston Gold with the opportunity to drill test the northeastern extension of the Parallel vein as well as test for any additional unknown vein systems in this area.

A three-dimensional representation of existing and proposed underground workings at the historic Winston gold mine near Helena, Montana. Illustration courtesy Winston Gold Corp.

Winston holds an active Exploration License that allows for exploration drilling, mine dewatering and development as well as a 10,000-ton bulk sample for metallurgical testing. This can be easily upgraded to a Small Miners Permit which allows for mining provided no more than 5 acres of surface area is disturbed.

Ultimately the goal will be to reach the deeper and untouched levels of the goldrich Custer vein. The Custer was developed to the 600 level, but the last known stoping was on the 500 level. Recently, Joseph Carrabba took on the role of Executive Chairman of Winston Gold. This, in our opinion, is another significant endorsement of the potential of this project. Carrabba has over 42 years of management and operational experience in the resource industry. He has stated that he believes in the potential of the highgrade Winston gold project and intends to work towards transforming that potential into reality.

Having formerly served as President and Chief Operating Officer of Cliffs Natural Resources Inc., President and Chief Operating Officer of Diavik Diamond Mines, Inc. and General Manager of Weipa Bauxite Operation of Comalco Aluminum, we believe Carrabba’s opinion carries some weight. He has put his money where his mouth is and currently owns about 25% of the fully diluted shares of Winston Gold Corp.

Stew Vorberg and Doug Wood are Investment Advisors with Mackie Research Capital Corporation (MRCC). This article was prepared, in part, under contract by Thomas Schuster. The opinions, estimates and projections herein are those of the authors and may not reflect that of MRCC. The information and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. The issuer(s) mentioned in this article may not be suitable for all investors. Please consult an investment professional for advice regarding your particular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss arising from any use of this article or its contents. Information may be available to MRCC which is not reflected herein. This article is not to be construed as an offer to sell or a solicitation for an offer to buy any securities. The information contained in this article is not intended to constitute a research report. Stew Vorberg and Doug Wood are beneficial owners of the company highlighted in this article.

GOLD FACTS

• Three Olympic swimming pools can hold all the gold ever mined in the world.
• The world’s oceans contain nearly 20 million tonnes of gold.
• The world's largest gold bar weighs 250 kg (551 lb).

Source: Resource World Magazine

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