Golden Rule gets nod for its Komis gold project

Saskatchewan has granted Golden Rule Resources (TSE) a surface lease for the Komis property, from which gold is expected to pour in August.

Komis, which lies 170 km northeast of La Ronge, hosts proven reserves of 680,000 tonnes grading 10.3 grams gold per tonne. The mining plan projects a production rate of 400 tonnes per day for five years. If a potential reserve of 1.2 million tonnes grading 14 grams is firmed up, the mine life could be expanded to 10 years.

The mine will be operated by Golden Rule subsidiary Waddy Lake Resources, and president Lawrence Lahausen is optimistic about the project’s future. “The deposit is open and provides excellent potential for expansion,” he says.

Ore will be processed 75 km away at Golden Rule’s Jolu mill, and tailings will be used to backfill the mined-out Jolu workings.

With a capital cost of $8.5 million and annual operating expenses of $15.6 million, the project’s cash cost, at current rates, stands at US$255 per oz. The annual production rate is projected at 45,000 oz.

The project is being financed through a US$5-million loan and the issue of special warrants that will provide up to $10.5 million.

The mine and mill will employ 100 when operational and, according to the province’s minister of northern affairs, will become a valuable employer in the region. “As a result of the agreements, northerners will receive every possible opportunity for employment on the project, including training,” says Keith Goulet.

Elsewhere, Golden Rule and Tyler Resources (TSE) are drilling at the Golden Heart gold prospect, 8 km from Komis. The deposit hosts a probable reserve estimated at 690,000 tonnes grading 10.3 grams, but that figure is expected to rise as a result of drilling

Recent drill holes have encountered some high-grade mineralization, including 3.3 metres grading 61 grams, 2.8 metres grading 135 grams and 3 metres grading 96 grams.

At the Currie Rose property, 65 km south of the Komis deposit, Claude Resources (ASE) has just finished a 24-hole program.

The company identified three parallel mineralized zones at the property, which adjoins its Seabee gold mine. Each zone has a minimum strike length of 150 metres and a minimum vertical extent of 100 metres. The zones show an average true width of just over 1 metre and grades range from 5 to 39 grams.

Claude Resources is earning a 100% interest from Currie Rose Resources (VSE), which retains a 30% net profits interest.