Having spent about $1.9 million to explore the Bachelor Lake property at Desmaraisville, Que., Acadia Minerals (TSE) has decided to relinquish its option on the high-cost gold mine. Under an agreement with Bachelor Lake Gold Mines (TSE), Acadia was to earn a 60% interest in the mine and mill by completing an underground exploration and development program and resuming production. The mine has been held on a care-and-maintenance basis since August, 1989.
“Although several diamond drill holes produced good intercepts, the project did not meet the overall criteria necessary to continue the exploration program,” Acadia said in a press release.
Over the past eight months, Acadia has focused on defining the depth potential of the Bachelor Lake ore zone. After 15,834 ft. of drilling and 580 ft. of drifting, the company outlined additional reserves of 250,000 tons (undiluted) grading 0.28 oz. per ton.
Before closing, the mine produced 121,160 oz. of gold at an average cost of US$390 per oz. Remaining reserves totalled 150,000 tons grading 0.21 oz. above the 12th level.
Bachelor Lake said it is discussing other joint venture opportunities with interested parties. The company has also commissioned a study to examine the feasibility of resuming production in light of the reserves identified by Acadia.
Be the first to comment on "Acadia drops option on Bachelor Lake"