Hemlo producers continue high grade, low-cost ways

Two of the three gold producers at the Hemlo gold camp on the northern shore of Lake Superior are mining ore grading above 0.4 oz gold per ton, according to data released by the operators.

For the quarter covering the final three months of 1987, the David Bell mine of International Corona Resources and Teck Corp. (50/50 partnership) averaged a grade of 0.46 oz while Hemlo Gold’s Golden Giant mine averaged 0.41 oz.

The third operation, the Williams mine, which remains the focus of a lawsuit between Lac Minerals and Corona, averaged 0.23 oz during the quarter.

All three mines continue to be low cost producers: the Golden Giant turned out 102,092 oz gold during the quarter at a cost of $97(US) per oz, the David Bell output totalled 43,105 oz at $111 per oz, and the Williams produced 82,103 oz at $118 per oz.

For the quarter, the Golden Giant milled 2,800 tons per day, the David Bell processed 1,050 tons per day and the Williams had a daily throughput of 4,150 tons.

(Corona and Teck each have a 25% net profits royalty in a quarter claim which lies immediately west of the David Bell workings and which is operated by Hemlo Gold. Production from the quarter claim is included in Hemlo Gold’s figures.) Production stoping

Corona reports that development of higher-grade lower levels of the David Bell mine was at a stage to permit the start of production stoping in February of this year above the seventh level. The result, the company says, will be increased production from the lower levels.

Corona also reports that at the Williams mine, the bulk of the ore milled during the quarter came from the lower levels, or B zone, of the mine. The capacity of the Williams mill is in the process of being doubled to about 6,600 tons per day, with the job scheduled for completion in September.

The Williams mine was awarded to Corona by the Supreme Court of Ontario in March, 1986, a ruling subsequently upheld by the Ontario Court of Appeal. Lac has appealed the decision to the Supreme Court of Canada, which is scheduled to hear the case Oct 11.