Nickel Plate’s third life boosts Mascot

The third era of production from the historic Nickel Plate mine at Hedley is proving profitable for Mascot Gold Mines.

The new British Columbia gold producer, owned 50% by Lacana Mining, expects to produce 130,000 to 150,000 oz gold in its first full year of operation. A heap leach operation on the property will add a further 8,000 oz, President Paul Saxton says in the annual report.

The 2,700-ton-per-day open pit operation is running smoothly after being brought on stream in late March, below budget and ahead of schedule. Capital costs amounted to $63 million.

The company milled 317,170 tons to produce 24,000 oz gold and 13,000 oz silver in the fiscal year ended Sept 30, 1987.

Operating costs are being steadily reduced, Saxton reports, except in the mill where several changes are being made. Changes include replacement of the jaw crusher with a gyratory crusher to eliminate a major bottleneck and a pre-clarifier to improve pressure clarification. The new hopper clarifier will be in place early February and the crusher is being delivered in April, at a combined cost of $3.5 million. A change in effluent treatment procedure is being studied.

Pad construction has started for the heap leach operation and the company plans to begin moving material early May, with gold recovery starting in June. Saxton estimates production to be around 8,000 oz in 1988, increasing to 12,000 oz in 1989.

On-site exploration is continuing to increase ore reserves which at Sept 30 were 9.9 million tons grading 0.133 oz gold per ton.

About $3 million in flow-through funds is being spent on exploration to the end of February. A new zone was discovered by drilling in 1987 beyond the limits of the existing South pit and an 1,800-ft adit is being driven to reach the zone (N.M., Nov 30/87). About 150 ft has been driven and another 1,600 ft is expected to be completed by the end of February, Saxton reports.

Mascot increased its interest in the Bralorne mine property to 57.54%, and is in the process of transferring this interest to Golden North for 1.5 million shares. Upon completion of this and the purchase of another 1.45 million Golden North shares from Royex Gold Mining (in exchange for Mascot shares), Mascot will have a 39% interest in Golden North. The latter has properties adjacent to the Nickel Plate mine with reserves that can be treated at the Nickel Plate mill. Both transactions will be completed in the near future, Saxton says.

Located 40 miles west of Lillooet, B.C., the former producing Bralorne property has reserves of 1,064,420 tons grading 0.27 oz gold, including 149,000 tons grading 0.4 oz. Mascot had planned a drilling program leading to feasibility in 1988.

Drilling is planned on several other promising prospects this year. In the Williams Lake area of B.C., work will continue on the Christmas property where soil sampling and ip surveys identified a new zone of gold mineralization.

Work is continuing on the former producing Giant Nickel mine property near Hope, B.C., where soil geochemistry revealed anomalous nickel, copper and cobalt values, and significant platinum group assays.