Chesbar Resources has started underground work on Murgold Resources’ Chester Twp. property in Ontario’s Swayze area with the objective of proving up 500,000 tons of ore by year-end grading 0.30 oz gold per ton.
Chesbar, which has an option to earn a 60% interest in the property, says that tonnage would be sufficient to form the basis for a 300- ton-per-day mining and milling operation. Estimated capital cost for such an operation is about $5 million with operating costs at about $55 per ton or $150(US) per oz. Production would be about 30,000 oz per year.
There are eight separate vein structures on the property and the 1986 objective is based only on one of those, the No 3 vein. The over-all potential of the property is much greater, the company says.
A ramp is being driven for 2,800 ft on the gold veins. Diamond drilling will also be conducted from underground to define ore blocks.