A long-awaited feasibility study on the Eagle River gold deposit near Mishibishu Lake, Ont., should be ready by the end of the month, says Richard Nemis, president of Central Crude (TSE). The study will use several scenarios for milling the Eagle River ore, including construction of a stand-alone mill, he said. Previous studies that assumed access to the nearby Magnacon mill have had to be scrapped following a breakdown in negotiations between Hemlo Gold Mines (TSE) and the mill’s owners (T.N.M., Jan. 7/91).
The Eagle River deposit, estimated to contain preliminary reserves of 1.77 million tons grading 0.25 oz. gold per ton, is a 60-40 joint venture project between Hemlo Gold and Central Crude.
“We are rushing to complete the Eagle River feasibility,” said Nemis. “I estimate that we have fallen four months behind as a result of the Magnacon fiasco.”
Nemis said geological consultants Watts, Griffis and McOuat are involved in the number-crunching and are expected to produce an estimate of possible and probable reserves.
Results from test milling at the Golden Giant facilities near Hemlo, Ont., confirm a grade of about 0.25 oz. (cut) for the Eagle River ore. The bulk samples, weighing a total of about 66,000 tons, also indicate recoveries of 95-98%.
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