Rouyn’s Francoeur ready to produce

Operations at the Francoeur gold mine near here are scheduled to begin generating cash flow on October 15th, project operator Rouyn Mining Resources (TSE) says. Shared equally with Lac Minerals (TSE), the project is one of three mining developments in this mining camp which are being operated by Rouyn Mining.

The Francoeur provides the main reserve base in the company’s portfolio and is the foundation of Rouyn’s growing presence in Quebec. A former Wright-Hargreaves producer, the Francoeur yielded more than 150,000 oz of gold before it closed in 1971.

Following an evaluation of the mine plans, underground exploration and rehabilitation, Rouyn has outlined reserves of 2.5 million tons grading 0.18-0.19 oz gold per ton.

Rouyn is currently hoisting 450 tons per day up the Francoeur No 6 shaft. This ore is being stockpiled at Lac’s Est-Malartic mill located near Val d’Or. By Oct. 15, Rouyn will have 65,000 tons of material grading 0.2 oz at the mill site. Processing will be at rate of 1,800 tons per day, which should exhaust the stockpile in little more than one month. Rouyn’s gold credit is estimated at 6,100 oz.

By early 1989, another 65,000-ton stockpile will be built up by on- going mining from the No 6 shaft. Also, by this time, the new Jean- Guy Rivard shaft will be completed.

A majority of the Francoeur’s reserves are located more than 2,000 ft away from the No 6 shaft, which was sunk to a depth of 1,100 ft. As a result, Lac and Rouyn are sharing the $8-million cost of sinking a new shaft to a depth of 2,700 ft.

Known as the Jean-Guy Rivard shaft, after Rouyn’s founder and president, the shaft is located 2,500 ft north of the No 6. At the time of The Northern Miner’s visit, the shaft had been sunk to a depth of 900 ft. An original advance rate of 150 ft per month has been cut in half by the need to grout. The precaution is warranted, in order to prevent against any major water inflows in the future, Edmond Legault, vice-president mining at Rouyn, says. “The Jean-Guy Rivard will be our production shaft for the life of the mine. We’re making sure everything is being done right,” Legault explained. Rouyn crews shaft sinking

Unlike the majority of junior mining companies, Rouyn is not only building and operating its own mining development, but is also doing the shaft sinking with its own crews. Although Lac closely audits the progress, the big company has been pleased with Rouyn’s technical performance to date. Despite the delays due to grouting, the new shaft is scheduled for completion by early 1989.

The new shaft will enable Rouyn to hoist at a rate of 1,000 tons per day and at a lower cost per ton than currently being mined at the No 6. More importantly, by the end of 1989, the company’s new $20- million 1,500-ton-per day mill will be in operation.

Based on production of 120,000 tons from the No 6 and 60,000 tons from the new Jean-Guy Rivard shaft, the company is forecasting gold production of 34,000 oz in 1989. By 1991, with the mill processing ore from the Francoeur, gold production is estimated at 65,000 oz.

An important step in bringing the Francoeur back to life has been an underground evaluation by Rouyn. A critical test was a 25,500-ton bulk sample which was processed at the Est-Malartic mill. Recovered grade was 0.196 oz for a recovery of 93.4%, Legault explained.

More importantly, the sample was representative. “The sample was taken from 10 different mining areas, including old stopes, raises and new areas. We sampled everything.” Legault said. “We’re much more confident of our grade now,” Jean-Guy Rivard added at the site.

Although the Lac mill had to be slightly modified to handle the Francoeur ore, including changing several cyclones and filters, the successful bulk test is being viewed as a mill tune-up. “The Lac staff at Est-Malartic did a lot of good work to get the best results from our ore,” Rivard adds. Mill charges are competitive at $15.13 per ton. New 1,500 tpd mill planned

The use of the Lac mill however, is viewed by management as a short-term development. Future plans include the construction of the new 1,500-ton-per-day mill facility at the Wasamac mine site. Located just a short drive from the Francoeur site, the Wasamac is another former gold producer in the Lac fold. Rouyn has earned a 50% interest in the property.

Dewatered to the 1,000-ft level, the Wasamac is being rehabilitated and explored from underground. “On its own, it would not work,” Legault says. “But with a mill in the area, there is a lot of ore to mine.” The Wasamac is being eyed as the site for the new mill because of the foundations and mill building on site. An examination of the area by The Northern Miner showed the concrete foundations, although more than 20 years old, to be in excellent condition. An engineering study also concludes that the building and infrastructure could support a 1,500-ton-per-day mill. Rouyn values the Wasamac’s mill infrastructure at $3 million.

A feasibility study on the Wasamac and new mill is expected to be completed by November. An independent ore reserve calculation, determined that the Wasamac mine workings host probable reserves of 946,185 tons grading 0.149 oz. A crown pillar, which would have to be recovered after underground mining ceases, hosts another 816,313 tons grading 0.099 oz. Rehabilitation a challange

The real challenge at Rouyn, however, “has been to rehabilitate an old mine,” Legault explained to The Northern Miner during a site and underground tour. Miners have to deal with old stopes, which required rebolting, and relatively complex geology.

Gold mineralization is associated with the Francoeur fault, a major shear zone striking for 8,000 ft across the company’s property. The main mineralized zone is within sections of the shear which cuts strongly deformed felsic volcanics. The mineralized zone averages 8-10 ft in width, but displays a classic “pinch and swell” habit — characteristic of most shear-associated gold deposits in the area. Fine disseminated pyrite is the primary gold-bearing mineral, The Northern Miner saw in several stoped- out areas.

As a result, mine staff place little reliance on visible definition of ore zones. Grade control, then, requires detailed sampling in advance of development. Each blasted round is channel sampled three times and the assays compared to mucks taken out of the mine. Also, test drill holes are put into the zone walls in order to determine the ultimate width of the zone. Exploration success

Rouyn has also met with considerable exploration success. Guided by several encouraging intersections drilled in the 1960s into the hangingwall on the 11th level, Rouyn has drilled off a 50,000-ton block parallel to the main zone. “Anything we find above the 11th level is good because we have the infra structure in place,” Rivard explained.

Known as the 11-20 block, mine geologist Fernand Pouliot estimates the mean grade at 0.17 oz. According to Pouliot, considerable exploration potential remains in drilling for parallel zones in both the foot and hangingwalls.

The company, which has used flow-through share financing to earn its interest, is well financed for the current underground exploration and development phase. Additional cash will be required for the mill.