Dona Lake important to Placer’s Canadian plans

When a company turns out as much gold as Placer Dome, an estimated 1.2 million oz in 1989, the need to develop future sources of output becomes more acute. As the company’s first gold mine in Eastern Canada to open since the Detour Lake mine in 1983, Dona Lake demonstrates Placer Dome’s commitment to this part of the world.

“Eastern Canada is very important to us,” Placer Dome Chairman Fraser Fell told The Northern Miner during a tour of Dona Lake’s surface facilities as part of the mine’s official opening. “We know there’s gold here.”

Placer Dome’s manager of exploration for Eastern Canada, John Morganti, estimates that roughly 30% of the company’s worldwide exploration budget is earmarked for Eastern Canada. As a result, the Musselwhite project at Opapimiskan Lake 90 miles north of here could see production as early as 1991. Placer Dome is operator and 43% owner of Musselwhite and is currently producing a feasibility study on the project (N.M., May 22/89). Placer Dome, along with Inco and Corona which own 32% and 25% of Musselwhite respectively, is contemplating a $100- million capital cost to bring Musselwhite into production which could mean a mine capable of turning out 150,000 oz a year.

Although a smaller mine than that contemplated for Musselwhite, Dona Lake is remarkable for the speed with which it was brought into production. The claims were staked in 1980, first drilling conducted in 1983, and a “discovery hole” drilled in 1984. A production decision was made June 24, 1987, and just 18 months later the mill was fully commissioned. First gold from the mine was poured in February of this year.

The 550-ton-per-day Dona Lake mine and mill complex cost $43 million with exploration and engineering work done prior to the production decision adding another $9 million to the total cost.

Current proven and probable reserves stand at 754,000 tons of 0.24 oz gold per ton with another 1.12 million tons indicated at depth grading 0.17 oz. Chief geologist Patty Nahai told The Northern Miner the deposit is open below the bottom level at 725 ft. Five flat holes drilled recently from that lowest level intersected grades of up to 0.29 oz with one intersection over 107 ft. indicating further ore reserves are available. She said the budgeted head grade for 1989 is 0.20 oz.

Long hole blasting is the mining method employed at the mine. Draw points are on the 330-ft and 530-ft levels. There are four sub- levels at 50-ft intervals above each main level. At each sublevel long blast holes are drilled in order to break off a slice of ore measuring about 50 ft high and about four feet thick.

Chief engineer Kirk Rodgers says Placer Dome took over mining operations from Redpath Engineering about a month ago. Boart Canada does the long hole blasting on a contract basis.

At the time of The Northern Miner’s visit to the site, Rodgers said development was fully completed on the 330 level, blasting was starting on the 230 level and drilling was being done on the 180 level.

Dona Lake brings Placer Dome’s number of gold mines in Ontario to three. The others are the original Dome mine in Schumacher which, now in its 80th year, consistently produces more than 125,000 oz per year, and the Detour Lake mine about 120 miles northeast of Timmins which is expected to produce about 125,000 oz this year.

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