Newhawk obtains Sulphurets feasibility

A draft feasibility study by Cominco Engineering Services on the Sulphurets gold- silver project north of Stewart, B.C., was recently presented to partners Newhawk Gold Mines (TSE) and Granduc Mines (TSE). Newhawk, operator and 60% owner, released no details on the outcome of the study other than to say it would now be used to “optimize the project.” To that aim, the joint venture partners engaged Corona (TSE) to assist in the preparation of a bankable feasibility study with participation from Newhawk personnel. Corona holds about a 42% equity interest in Newhawk.

“We’re still very positive about the future of the project,” said Don McLeod, president of Newhawk. “The reserves are there and operating costs are acceptable. Other parts of the study need more work to ensure this project comes out positive and profitable.”

This further study is expected to be completed within the next four months. The Corona-Newhawk team will be headed by Mac Gibbs, who was vice-president of Hemlo development during the construction of the Williams mine.

Accessible only by air, the Sulphurets property was recently reported to have proven and probable geological reserves of 715,400 tons grading 0.43 oz. gold per ton and 19.70 oz. silver.

Industry sources told The Northern Miner that Newhawk’s guarded announcement was not a surprise as capital and operating costs in northwestern British Columbia are typically higher than most other regions because of the lack of infrastructure, rugged terrain and sometimes hostile weather conditions.

Of four new gold mines brought on stream in northern British Columbia during the past several years, only the Lawyers gold-silver mine operated by Cheni Gold Mines in the Toodoggone district has achieved commercial production levels and healthy profits. The mine is accessible by road.

Skyline Gold’s Johnny Mountain mine, Westmin’s Premier Gold mine (with Pioneer Metals and Canacord Resources), and North American Metals’ Golden Bear mine are all still striving to achieve sustained profitability.