Production continues at revitalized Dona Lake

Since operations resumed in August, the Dona Lake mine has produced 5,773 oz. gold.

November marks the beginning of full production for the operation, near Pickle Lake, Ont. A monthly rate of 3,000 oz. gold is projected. The mine, 85%-owned by Ross Finlay and 15% by Societe Miniere Ecudor (ME), has proven reserves of 178,000 tonnes grading 7.66 grams per tonne (196,000 tons at 0.25 oz. per ton).

To increase reserves, drilling was performed on the B and C zones, between the 220 and 455 levels. Two holes intersected marginal gold values from the C zone, below the 220 level. Four holes from the B zone intersected economic values between 4.63 and 13.74 grams over lengths as high as 6.4 metres. More extensive drilling, to define the ore zone extension, will start in February. In other news, Dona Lake Gold Mine has signed a letter of intent with Wiscan Resources (TSE) to acquire a 100% working interest in the Kasagiminnis Lake gold property, 16 km from the Dona Lake mill. Kasagiminnis comprises 167 claims and contains 284,000 tonnes grading 5.8 grams.

To earn its interest, Dona Lake must spend $1 million on exploration and development and pay $50,000 cash to Wiscan within three years. Work will consist of infill and stepout drilling on the known gold horizon, as well as drilling of other untested horizons.

Ecudor can earn up to a 30% interest in any property acquired by Dona Lake within a 100-km radius of the mine by spending $2 million on exploration and development by March, 1995.