After funding about $4.2 million on exploration and metallurgical work since 1990, Cheni Gold Mines (TSE) has decided to drop its option to acquire a 60% interest in the J&L polymetallic property, near Revelstoke, B.C.
Cheni said its decision was taken as a result of weak metal prices and high exploration, development and operating costs. The company will retain no interest in the property, held equally by Equinox Resources (TSE) and Pan American Minerals (TSE). Equinox owns a 40% equity interest in Pan American, and the two companies are seeking a major industry partner to continue work on the J&L project.
Proven and probable reserves are stated as 1.69 million tonnes grading 7.4 grams gold and 76 grams silver per tonne, 2% lead and 4.4% zinc, plus a possible resource of a further three million tonnes at similar grades. The deposit is metallurgically challenging in that it also contains about 5% arsenic.
Recent exploration work on the property led to the discovery of the Yellowjack deposit, which has a resource of about one million tonnes grading 10% combined lead-zinc.
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