Cameco, Shore Gold set to open gold mine near La Ronge, Sask.

Production is scheduled to get under way early this month at the small, high-grade Jasper gold mine owned by Cameco and Shore Gold Fund (ASE) in northern Saskatchewan. Situated about 35 miles north of La Ronge, Sask., the Jasper mine is owned 80% by Cameco (operator) with Shore Gold retaining a 20% interest. Access to the orebody is provided by an underground decline.

According to James Engdahl, president of Shore Gold Fund, the Jasper mine decline and underground workings have been completely dewatered and all employees are now on site to start milling in the first week of April. He says about 75 workers will be employed at the 250-ton-per-day mining and milling operation.

Annual gold output from the mine is expected to be about 28,000 oz. this year, and 42,000 oz. in 1991, he says. Production will come from sulphide ore with an estimated average mill head grade of 0.50 oz. gold per ton.

Previously published reserves for the Jasper mine stand at 175,000 tons grading 0.72 oz. gold, but a $700,000 exploration program under way this year could add to the known reserve figure.

Underground and surface exploration will explore extensions of the Jasper deposit at depth and along strike. Other targets have also been identified in the area of the Jasper zone and these will be tested as part of the 1990 surface program.

The property comprises some 16,053 acres and is about three miles from the Star Lake mill where ore from the Jasper deposit is being processed under a mill lease agreement.

First discovered in 1987, the Jasper deposit initially yielded some impressive visible gold showings in surface samples before an underground exploration program was completed in 1988. Geologically, the deposit is hosted by a northeast trending shear zone along the southern margin of a large intrusive body.

The first gold brick from the Jasper mine is likely to be poured in the third week of April, according to Engdahl. A short mine life of about three years is expected for the small high-grade operation, he adds.

Saskatoon-based Cameco is owned by the provincial and federal governments, but a series of share offerings are planned to privatize the company over the next seven years.

Late last year, Cameco and Shore Gold bought the combined interests in the Jasper mine property held formerly by Golden Rule Resources (TSE), International Mahogany (TSE) and Goldsil Resources (VSE).