Canamax, Pamorex open Bell Creek gold mine

Credit was given where credit was due at the official opening ceremony of the Bell Creek gold mine near here. Officials of Canamax Resources and Pamorex Minerals, equal partners in the venture, acknowledged the fact that the mine is a superb example of the wealth that flow-through financing can bring to an area.

“I think it is fair to say that without these government incentives there would be no Canamax today, and in all likelihood, there would be no Bell Creek mine,” John Hansuld, president and chief executive officer of Canamax told more than 400 guests who were gathered at the mine site.

Canamax, which was formed in late 1982 when the company purchased all the mineral assets of Amax Minerals Exploration for Canamax shares, pioneered the use of flow-through financing in Canada in 1983. At that time a public offering completed by Richardson Greenshields raised $29 million.

The mine, which is expected to produce 25,000 oz of gold per year, is also a milestone for both Canamax and Pamorex. The latter company is an affiliate of Pamour Inc. — a major Timmins gold producer. For both companies, Bell Creek is their first gold mine. John Hansuld, however, has established a bold 5-year development plan which will see five new mines come on stream for his company.

Representatives of the federal government were undoubtedly pleased to hear Mr Hansuld say that “if we are to acknowledge the financing of Bell Creek, then we must look to our guests from the provincial and federal governments because it was their policies being put to work by Canadian entrepreneurs and investors that are the real bankers of Bell Creek.”

Production will be at a rate of 25,000 oz of gold per year from a 385-ton-per-day milling operation. Proven and probable reserves in three zones total 995,000 tons grading 0.185 oz gold per ton. These occur in classic Timmins-type quartz vein mineralization cutting carbonatized volcanic rocks. Mining is via a 3-compartment shaft to a depth of 900 ft.

Considerable exploration potential remains on the property, especially at the Marlhill zone located to the north of the mine. Differing geologically from the North and Bell zones which are being mined, the Marlhill consists of a crosscutting vein system hosting several extremely rich shoots. Drill results include 16.7 ft grading 0.99 oz gold per ton and 16.4 ft grading a spectacular 6.74 oz.

The mine, which employs 91 people, poured its first bar just before the official opening. That pour weighed in at 662 oz of gold.