Alligator Ridge: From a Lone Prospector’s Discovery to an Operating Gold Mine

The Alligator Ridge mine is a near-surface gold mine located in a remote area 113 km (70 miles) northwest of Ely, NV. The deposit was discovered in 1976 by a lone prospector working under a grubstake contract for Amselco Minerals Inc. Evaluation of mine potential proceeded quickly. Favorable drilling results led to feasibility and mine design studies by the end of 1978. Mine construction began in early 1980. By September of that year, the process plant was fully operational. The first gold was poured a few months later. Alligator Ridge is designed to produce 1.9 t (60,000 oz) of gold each year. The projected mine life, based on proven reserves, is to mid-1988. However, Amselco is actively conducting exploration nearby for additional reserves to extend the mine's life. Amselco, a subsidiary of the British Petroleum Co., is based in Denver, CO. The company is mine operator and jointly owns the project with Nerco Minerals Inc., a wholly-owned subsidiary of Pacific Power and Light. Alligator Ridge is Amselco's first US mining operation. Geology Alligator Ridge, so named because it appears in outline to be an alligator at rest, contains disseminated micron gold embedded in iron-streaked siltstones. Although definitive conclusions have not been drawn on age and origin, the gold ore bodies are probably young by geological standards. They were formed in a recent volcanic period still evidenced in parts of Nevada by geysers and hot springs. As these superheated solutions rose through the permeable siltstones, they deposited minerals in the rock and formed the present gold ore bodies. During 1977, an extensive soil geochemical sampling program with additional geologic mapping and outcrop sampling were conducted. The results generated several drill targets. Initial drilling was performed in November and December 1977, and ore grade mineralization was encountered in the first drill hole. The Alligator Ridge mine is unusual in relation to other and more recent western US mineral discoveries in that it occupies an area that had no previous mining history. The ore deposits are hosted in upper Paleozoic sedimentary rocks that consist predominantly of a thick carbonate sequence. The main ore host is the Devonian-Mississippian Pilot shale, which occurs locally as a sequence of thin bedded calcareous, carbonaceous siltstones and claystones. The maximum observed thickness of the Pilot section in the mine area is about 140 m (460 ft). Rocks in the Alligator Ridge area have been folded into a series of low amplitude anticlines and synclines that strike north-south and plunge to the south at about 20°, with limbs that dip nearly 20°. The folds have been truncated and deformed by later high-angle faults that generally strike northwest. Although multiple stages of movement are evident on the fault systems, the youngest period of activity is along the major northeast trend. The predominant structural pattern in the area is of the basin- and range-type high angle normal faults. Alligator Ridge is actually a horst block between two basin and range faults. Vantage Ore Deposits There are three principal ore deposits within the Vantage Basin and several smaller satellite mineralized areas. The three Vantage deposits are encompassed in a mineralized zone that covers an area 915 m (3,000 ft) long and 305 m (1,000 ft) wide. All mineralized zones have been outlined by more than 600 rotary drill holes, with an average depth of 150 m (500 ft). Mineralization occurs in both carbonaceous and oxidized rocks. The carbonaceous gold-bearing material is not amenable to current heap leaching practice. Therefore, only oxidized ores are now treated. The carbonaceous gold-bearing material is segregated and stockpiled as it is encountered during mining. The three ore bodies occur along a north-northeast strike, with mineralization becoming progressively deeper from north to south. The ore block dimen-