Suntac looks to revive Polaris-Taku mine

The Polaris- Taku mine in northwestern British Columbia which produced 230,000 oz gold from ore grading 0.47 oz from 1938 to 1951, is being evaluated by Suntac Minerals (VSE) for its potential to again produce the yellow metal. The former producer had been eagerly but unsuccessfully sought by a number of mining groups in recent years, because it has both established reserves and recognized potential for additional tonnage. In any event, the project is considered a coup for Suntac, a newly-launched junior in Donald McLeod’s Northair Group of companies.

According to Craig Angus, president, it took the company about eight months of persistent negotiations to finally come to an agreement with Rembrandt Gold Mines (VSE) to option the property. Suntac can earn a 60% interest by spending $3 million over five years.

Since taking on the project this fall, Suntac carried out linecutting, geochemistry and a short 3,500-ft surface diamond drill program designed to test areas accessible from the old mine workings, but outside the calculated ore reserve of 250,000 tons grading 0.33 oz gold per ton. The primary targets were meant to follow-up a number of intercepts taken from these areas in the latter years of production, notably: 15 ft of 0.44 oz gold; 35 of 0.30 oz; 12 ft of 0.88 oz; 24.5 ft of 0.21 oz; 11 ft of 0.40 oz; 10 ft of 0.35 oz; 10.5 ft of 0.32 oz and 5.8 ft of 1.75 oz.

The first hole in Suntac’s program (also the first hole drilled in 30 years) encountered a mineralized structure which the company said represents a possible extension of the Y vein beginning at a depth of 20 ft and intersecting 8 ft of 0.33 oz gold. A second hole drilled to get a better view of the structure returned 21 ft of 0.472 oz gold, including 12 ft of 0.65 oz gold. Hole 88-3, drilled 165 ft to the southwest, intersected three different mineralized structures; 8.5 ft of 0.10 oz gold, 9 ft of 0.41 oz gold and 5 ft of 0.13 oz gold.

The company said numerous targets of this nature exist on all mine levels, and more recent results include: 6 ft of 0.5 oz; 6 ft of 0.4 oz; 5.5 ft of 0.37 oz, 10.3 ft of 0.57 oz and 5.6 ft of 0.28 oz gold.

Angus said the company completed the underground rehabilitation of the AJ portal and the manway leading to the Polaris level in order to evaluate the underground workings so a budget could be prepared for a major program of rehabilitation and underground drilling in the spring of 1989.

“There’s very little timbering and the underground workings are in pristine condition,” he said. “This mine is well known for its excellent rock conditions.” Angus noted that although the drifts are moderately narrow (about 8 ftx8 ft), the company would likely use the same mining system (small track mining) as used by previous operators. “There’s no reason why we can’t make money exactly like they did.”

Like the previous operator, Suntac will have to deal with the metallurgy of the ore which is arsenical in nature, similar to ore to be mined from the Golden Bear deposit near Dease Lake. The previous operator at Polaris-Taku was able to achieve recoveries of about 93% with roasting, and Suntac expects to look at other measures to enhance those recoveries, including fine-grinding and possibly bio- leaching. A mill no longer exists on the property, although the mill building remains.

The camp is now fully winterized and ready for work to resume early next year in a program Angus estimates will cost between $2.5-$3 million.

“We think by the end of the program we could have this project very near the feasibility stage,” he said.

A financing to raise between $3.5-$4 million is now in progress. Prime Capital is involved on the financial side, but Angus said Suntac would not become a Prime Capital-managed company.

“We have a good working relationship with Prime, but we will be managing our own programs.”

Angus also said the geochemical component of the recently completed program outlined a number of promising areas that will be followed up in the 1989 season. The property, which consists of 63 crown grants and mineral claims, is covered by overburden and has very little outcrop, and has never been explored by modern geochemical and geophysical methods.

The property is located on the Tulsequah River about 40 miles from Juneau, Alaska and is air or barge accessed. There are two air strips; one 4,000-ft long located about three miles from the mine site by road, and a second, smaller strip at the mine site.