A sub-level drifting program in the Kuhn zone at Omni Resources’ (VSE) Skukum Creek project 30 miles south of Whitehorse has yielded some impressive gold values. The company notes that drifting along 120 ft of strike length averaged 0.86 oz gold and 5.8 oz silver over mining widths of up to 11 ft.
A new zone called the Kuhn- Sterling Split was discovered in the program and its dimensions are still unknown. Omni says that 20 ft of drifting there averaged 0.64 oz gold equivalent and high grade values were indicated in a percussion hole drilled in the drift face. Diamond drilling is planned to further delineate this zone.
Approximately 3,500 tons of material was mined from the Rainbow zone and initial results suggest low dilution, possibly less than 10%. Also, a comparison of drill- indicated versus actual mining grade shows an 18% increase in grade and a 21% rise in tonnage, Omni reports.
The company confirms that preliminary metallurgical work indicates over 90% gold and silver recoveries using a combined cyanidation-flotation process. Melis Engineering, which was involved in the construction of Canamax’s Ketza River mill, has been engaged to retrofit the Venus mill which is under lease from United Keno. Melis will also conduct a bulk sampling program to confirm the metallurgy and establish a flow sheet for the plant.
Main Street Mining has been awarded the contract for underground exploration and development and the bulk sample test. Bids have also been tendered to upgrade about five miles of haulage road and to transport ore from the Skukum Creek mine to the Venus mill.
The retrofitting and upgrading program for the Venus mill to 250 tons per day is expected to cost approximately $1.5 million and start-up is scheduled for this fall.
A $5.3-million exploration and development program at the mine site will begin shortly, the objective being to enlarge existing ore reserves. Drill proven reserves now stand at 821,000 tons averaging 0.23 oz gold and 8.9 oz silver with an additional 131,000 tons of drill indicated reserves averaging 0.26 oz gold and 4.9 oz silver. Included in this reserve is a higher grade portion of 183,000 tons grading 0.58 oz gold and 16.5 oz silver which could be mined in the first year.
At an extraordinary meeting held June 24, the joint venture agreement between Omni and Skukum Creek Gold to develop the property was approved.
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