Muscocho, McNellen close to production on Magino property

The Magino joint venture of equal partners McNellen Resources and Muscocho Explorations expects to make a production decision on its gold property near Wawa, Ont., before the end of June.

Muscocho President J. T. Flanagan, also a director of McNellen, says Magino should be in production before another property in the Wawa area, known as the Magnacon property. Muscocho is also operator on the Magnacon property which is expected to be in production by January, 1989 (N.M., March 21 /88). The Magnacon property is owned 50% by Flanagan McAdam Resources, 25% by Windarra Minerals and 25% by Muscocho.

The fourth deep hole put down on the Magino property recently intersected 31 ft grading 0.258 oz gold per ton at a depth of 1,767 ft. True width is 23.5 ft at a vertical depth of about 1,340 ft. The hole cut a number of other gold-bearing zones.

Drill-indicated reserves at Magino stand at 1.9 million tons averaging 0.25 oz. to a depth of 500 ft. Reserves could increase if tonnage below 500 ft is included.

A 400-ton-per-day test mill has been set up on the Magino property and, although construction has fallen behind schedule, a bulk sample from Magino is expected to start running through the mill in late March or early April.

Under terms of the joint venture agreement, a production decision on Magino is conditional on a successful bulk sampling. Flanagan, however, says he is confident the sample will be successful and that production will follow quickly once a decision is made.

The Magnacon property, by comparison, requires more construction work including a 30-mile hydro line.