Operator of the project, which unless new reserves are discovered will have about a 3-year mine lifespan, is Cambior Inc. (TSE), which announced a production decision last October.
Under the agreement between the two companies, New Pascalis’ interest in the project has been converted to a 20% net proceeds of production royalty after recoupment of Cambior’s expenditures amortized pro rata during the estimated life of the deposit.
New Pascalis President J. C. Cowan, speaking at the annual meeting, said total expenditures on the property to early this year stood at about $25 million. A further $15.5 million is being spent by Cambior to bring the project into production, for a total cost of about $40.5 million.
Current proven and probable reserves total about 1.3 million tons at a diluted grade of 0.1 oz gold per ton. Further exploration of the property is planned.
Work undertaken by Cambior last year included completing the sinking of a shaft to 1,000 ft to test the depth extension of the mineralized dike.
A 27,000-ton bulk sample extracted from the pre-existing 165-ft and 310-ft levels and treated at Cambior’s Yvan Vezina mill at Rouyn-Noranda, Que., indicated a grade of 0.125 oz and a recovery of 96%.
A second bulk sample, extracted from levels driven at 560 ft and 800 ft and 13,550 tons in size, returned 0.12 oz with a recovery of 92.3%.
A mill is being built on site to produce a gold concentrate, which will be trucked to the Vezina mill for final recovery. Planned is a bulk mining method using blasthole stoping. Expected annual production is about 35,000 oz from a milling rate of 390,000 tons ore. The mine will employ about 60 workers.
Controlling shareholder of New Pascalis, with a 43.3% interest, is Falconbridge Ltd. (TSE).
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