Coxheath’s tests show Tangier can operate profitably

A production decision has not been made yet, but the economic viability of mining gold from Nova Scotia’s narrow-vein, Meguma- hosted deposits is no longer in doubt.

Coxheath Gold Holdings (TSE) of Bedford, N.S., says that has been confirmed in milling tests, underway since July.

Metallurgical results from 5,000 tons of ore milled on the Tangier property, 100 km northeast of Halifax, indicate Coxheath can mine the narrow, high-grade deposit at a cost of $220(C) per oz, according to President Michael Riddell. As mine personnel and company equipment begin to replace contractors at the site and as miners gain experience in the resueing mining method, management expects costs will go down further.

Coxheath has spent $15 million exploring and developing the property, which includes some 3,000 m of underground workings, including a decline for access.

In July, the company mined a 29,000-ton bulk sample and has milled a total of 11,000 tons so far.

At a production rate of 200 tons per day and mill-head grades of 0.59 oz gold per ton, The Northern Miner calculates Coxheath could produce 31,000 oz in 1989. Recoveries are projected to be 90%.

Some 258,500 tons of probable ore reserves have been developed underground in eight separate vein packages and an additional 346,800 tons are drill indicated. Average grades, diluted by 50% are 0.3 oz gold. But by reducing dilution to 20% using resueing methods, the company intends to increase mill head grades.

Crews have been using the resueing method for about two months now and a total of eight stopes will be producing ore within two weeks, according to Vice- President Operations David Allen.

The company has purchased two new DUX 13-ton trucks, two Wagner 3 -cu-yd scoops and one Wagner -cu-yd scoop along with numerous stopers, jacklegs and slushers. Because all of the equipment is new, the company expects to have very low maintenance costs in the first six months of operation.

A total of 26 miners will eventually be employed at the mine, according to Allen and there will be 100 people employed in all.