Atlantic Report Nova Scotia operations reduced

The first Nova Scotia gold mining license in 35 years was issued to Coxheath Gold Holdings (TSE) of Bedford last December for its gold property at Tangier, Halifax Cty. Once Coxheath received an industrial waste discharge permit allowing operation of the Tangier mill and mine, the Nova Scotia mines department granted a mining lease valid for 20 years and renewable for a further 20 years.

Coxheath is milling around the clock, processing 160 tonnes of material per day composed of 67% ore and 33% development muck. Average grades are 0.37 oz per ton for the ore and 0.17 oz for the development muck, with an over-all average of 0.30 oz. Commercial production of gold is expected to start early in March, when the development muck will have been replaced by ore.

“We have sufficient proven ore blocked out and ready to mine to last for the next 14 or 15 months,” says President Michael Riddell. “We’ll gradually build up the proven and developed ore to have two years of production ahead.”

Because of the extremely nuggety nature of the gold — some nuggets are up to six or seven ounces — proving reserves is costly. Out of the estimated mining cost of $225 to $250 per ounce of gold, Riddell says $100 goes towards proving ore.

Coxheath’s objective for exploration and mine development at Tangier is to replace every ounce of gold mined out. All ore in the current reserves of about 105,000 tons which grade 0.27 oz per ton is within the boundaries of the existing network of extensive underground workings.

Coxheath has opened up and is presently mining a high grade zone on the Whin vein system. This zone, with a known vertical dimension of 17.4 ft., averages 1.72 oz over a width of 2.5 ft. It has been traced along strike for a total of 165 ft and is open in both directions. Production from the zone is expected to reach 65 tons per day in early March.

“Two additional high grade zones are presently being developed, one on a lower level of the Whin and one on the parallel Twin vein,” Riddell says, “and they’re also expected to come on stream by mid-March.”

Coxheath has invested over $17 million at the Tangier property to date.

* Acadia Mineral Ventures (TSE) is focusing its exploration efforts on volcanogenic massive sulphide deposits in northern New Brunswick, according to Don Black, Nova Scotia exploration manager. Acadia’s New Brunswick precious metal properties include the Armstrong Brook joint venture with Seabright Explorations and the Millstream project. The company has also recently acquired ground in the Nipisiquit River region, to the west of Noranda’s Brunswick 12 mine.

In Nova Scotia, Acadia is working in the Cobequid Hills of Colchester and Cumberland ctys., carrying out geophysics and geochemistry at Londonder ry and Five Islands. Funding is being arranged for a major drill program at Five Islands.

Acadia and joint venture partner Seabrex are also exploring for tin and precious metals at the Kemptville-Ogend property in Yarmouth Cty.

“We’re drilling there now, and have had good indications of gold, silver and antimony,” says Black.

At its East Kemptville property, Acadia is drilling to extend known sediment-hosted tin mineralization in the Meguma Group rocks. *

NovaGold Resources (TSE) of Halifax has been downscaling exploration over the past eight months and concentrating on properties most likely to come into production — the Murray Brook project in New Brunswick and the Summit mine property in new Mexico. NovaGold’s funding in 1989 will come from the pooled funds. *

Scotia Prime Minerals (ASE) of Halifax has a program planned for its 11 Nova Scotia mineral properties, according to President Craig Miller. Scotia Prime has a ground position in the Meguma group of rocks, where it made a new discovery by drilling at the Cameron Dam claim group in Halifax Cty. in 1988. At the Lower Seal Harbour property in Guysborough Cty., drilling with joint venture partner Lotus Resources has outlined a geologic reserve of about 250,000 tons grading 0.12 oz gold. Scotia Prime intends to drill-test several favorable targets for new ore shoots as the next stage of work there.

The company is contemplating a stripping program for the Ecum Secum gold district property in Halifax Cty. to better define the geometry of drill-intersected shallow ore shoots at surface, Miller says.

“If we decide to seek only a small amount of funding in 1989 because of low share prices, it will be spent on drilling our nickel-copper-silver property in the Cape Breton Highlands,” Miller says.

High nickel values and silver exceeding 0.60 oz per ton have been obtained in humus samples over a norite-peridotite intrusion. “The PGM potential of the property remains to be tested,” says Miller.

The company has spent $1.4 million to date on eight properties and is exploring alternative sources of funding for 1989. *

Cobequid Resources (VSE) of Halifax intends to start a 5,000-ft diamond drilling program at its Caribou gold property early this month, and is arranging funding for that work with NIM. Cobequid is also involved in a joint venture with Seabright Explorations on the Highland gold property near Country Harbour, Guysborough Cty. *

Lotus Resources of Dartmouth, N.S., has received conditional approval for a listing on the Alberta Stock Exchange. Lotus will be focusing its exploration efforts on the Rhodes Corner-Centre area south of Blockhouse, Lunenburg Cty., where it will carry out geochemistry, geophysics and geological mapping in its search for gold, according to President Wayne Lockerby.

Lotus will also explore its Isaacs Harbour gold property in Guysborough Cty., using funds presently in the company treasury combined with anticipated flow-through financing from a fund. *

Dartmouth-based Aquagold Resources (ASE) is negotiating with a Quebec Company on its Harrigan Cove gold deposit in Halifax Cty. If a deal is made, Harrigan Cove will be developed by means of a decline, President William MacPherson says. Aquagold has completed a major reconnaissance program on its precious metals properties in the Antigonish Highlands.

“Several potentially interesting areas have been located, and we’ll be seeking major partners for further work in this area,” MacPherson says.

Elsewhere, the company plans to start drilling on its Nevada properties in early spring, and it is exploring in Newfoundland.

The Halifax engineering firm of Jacques Whitford and Associates has been engaged to do a feasibility study on Aquagold’s Glen Morrison limestone deposit in Cape Breton. Drilling is under way to delineate the deposit for the initial pit design. *

Seabright Explorations of Lower Sackville, N.S., has completed mining and milling of an 18,000-tonne bulk sample from the open pit at the Touquoy project at Moose River, Halifax Cty. The final recovered grade of material treated was 0.03 oz gold. Drill-indicated in situ geological reserves at Touquoy are 1.1 million tons grading 0.07 oz gold.

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