Underground mining is under way at the Tillicum gold property near Nakusp, B.C.
The mining is part of an agreement giving Bethlehem Resources (TSE) and Goldnev Resources (VSE) the right to buy the Heino-Money deposit and on-site assets from Columbia Gold Mines (VSE) for $1.25 million.
Production of 200 tons per day is called for, with ore hauled to Goldnev and Bethlehem’s Goldstream mill near Revelstoke.
The joint venture has permits to mine up to 9,000 tons and has applied for permits to mine more.
Heino-Money contains an estimated 15,000 minable tons grading one ounce gold. Sampling of an initial 240 tons returned an average grade of 0.91 oz. gold. The joint venture has an option to earn a half interest in the remainder of the property from Columbia by spending $1.5 million before the end of 1997. Columbia has proposed a 5,000-ft. drilling program on the East Ridge zone to expand reserves from the current drill-indicated 485,000 tons grading 0.30 oz. gold.
If Goldnev and Bethlehem approve the program, drilling will likely begin this fall.
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