Underground program begins at Maude Lake gold property

A $2.6-million underground exploration program has begun at the Maude Lake gold property, near Matheson, Ont.

Work is being carried out under a joint venture between Equinox Resources, Technigen Corp. and Maude Lake Gold Mines, with Equinox as operaor.

Work has started on collaring the decline which will extend 2,490 ft to a depth of 443 ft below surface. The program also calls for 656 ft of crosscuts, 1,640 ft of drifts and 820 ft of raises, all expected to be completed by early May, 1988.

Technigen will provide the first $2 million (to earn 40% of Equinox’s 60% interest) and thereafter costs will be shared 60% Equinox, 40% Technigen.

Additional work to be carried out on the 18,000-acre property will entail 11,000 ft of surface diamond drilling, 10,000 ft of underground diamond drilling, an airborne geophysical survey and a feasibility study on reserves to the 600-ft horizon. This work is expected to be completed by July, 1988, to allow for a production decision.

Existing reserves are estimated in excess of one million tons grading 0.204 oz gold per ton, of which about 550,000 tons grading 0.19 oz occurs between surface and the 600-ft horizon.