What old gold mines threw out may now be economic

Energy, Mines and Resources Canada estimates tailings account for about 6% of this country’s more than 1,870 tons of gold reserves.

A survey by The Northern Miner counts 13 such tailings projects across Canada either in production or in the planning stages.

Largest of the projects is the tailings re-treatment operation at Timmins of ERG Resources (TSE) which is managed by Giant Yellowknife Mines (TSE). ERG claims to operate the second largest tailings recovery facility in the world; it says its facility is capable of turning out 50,000 oz gold per year for the next 17 years from the 150 million tons of area tailings either owned or controlled by ERG. (Timmins area tailings are reported to total about 200 million tons.)

ERG employs a slurry technique to reclaim the tailings for its milling facility, which was officially opened last October. By the time (Nov 20) the project was closed for the winter, about 90% of the milling equipment had been commissioned. ERG President Adrian Fleming said start-up this year may take place earlier than the scheduled April 1 date. Grades from the various tailings deposits range from 0.006 oz gold per ton to 0.05 oz. Production projections

For 1989, ERG is projecting gold production of 112,000 oz, and for the first six years (to December, 1993) output of 367,000 oz at an average operating cost (in 1988 dollars) of $190(US) per oz.

In the Northwest Territories, Giant Yellowknife (which, along with ERG, is part of the Pamour group of companies) started up a smaller tailings recovery project in May last year. The Yellowknife operation, with the capability of turning out 37,000 oz per year, is helping to supplant production lost by the closing (in 1987) of the company’s Salmita mine.

Output by the close (Oct 21) of the 1988 season was down slightly from expectations, said Fleming, who is also vice-chairman of Giant Yellowknife. The company is “happy with the way things shaped up” during the first year, he said, adding that the operating cost was below $250(C) per oz.

Two reclamation projects (both dredging operations) are in production at Kirkland Lake, Ont., one officially started up at the end of May last year by Eastmaque Gold Mines (TSE) and the other belonging to LAC Minerals (TSE) which began producing during the third quarter of last year. Greater plant capacity

The Eastmaque plant, designed to handle up to 2,250 tons per day of tailings, is being upgraded to process 2,500 tons per day, Roland Lemire, project general manager, said, adding that the new capacity could be in place by April 1. The company calculates its reserves, from three ponds, total 9.5-9.6 million tons grading about 0.04 oz.

Planned by the company is an average monthly gold production of 2,000 oz; a recent newspaper report indicates output may be slightly less, however. The operation features two dredges, one a used model the company is thinking of replacing with a newer machine.

With its nearby Macassa mill processing the Lake Shore tailings, LAC is forecasting project output for 1989 of 15,000-20,000 oz at a cost of about $140(C) per oz.

Two more gold-producing tailings recovery operations, are the Hedley and Old Union projects in British Columbia.

The Hedley project, jointly owned by Candorado Mines (VSE), with a 55% interest, and Cantrell Resources (VSE), with a 45% interest, is a heap leaching venture which was started up during the third quarter of last year. About 50,000 oz gold is expected to be recovered from the 1.3 million tons grading 0.045 oz by the time the operation winds up in 1990.

The Old Union project is a limited production run of Sumac Ventures (VSE) which involves 100,000 tons of tailings material grading 0.05 oz. Anticipated output during the latter half of 1988 was 400 oz; the reserves will be exhausted this year.

Two ventures that Halifax-based consultants Metals Economics Group lists as being at the feasibility stage are the Anglo/Rouyn project in Saskatchewan of Tusk Minerals (ASE) and the Snow Lake project in Manitoba of Sikaman Gold Resources (TSE). Near production

The Tusk venture, gearing up for production in the near future, hosts reserves of two million tons grading 0.025 oz gold and 0.26% copper. Output of 8,000 oz gold per year is forecast.

At Snow Lake, Sikaman expects to produce about 94,500 oz gold during a 2-year period from reserves totalling 274,000 oz grading 0.38 oz, at an operating cost of $97(US) per oz. The tailings sit on the old Nor- Acme mine property; High River Resources (VSE), which is the successor to Nor-Acme Gold, retains a 5% net smelter return royalty. Production could be under way during the fourth quarter of this year.

A production decision is expected soon from Goldteck Mines (TSE) for a project near Matachewan, Ont., involving tailings from a former gold producer owned by Matachewan Consolidated Mines.

In northwestern Quebec, at Val d’Or, an associated company of St. Genevieve Resources (TSE), Gold Spinners International, has been performing tests on a potential tailings recovery operation.

Trans-Dominion Energy Corp. (TSE) and Doelcam Mining have announced plans to form a new company, International Tailings Corp., to look after two tailings projects in northwestern Quebec. The smaller of the two projects, at 6.5 million tons, is the Normetal tailings deposit which contains zinc, copper, lead, silver and gold values. The second, 50 million tons in size and with mainly gold but some copper values, is located near Rouyn- Noranda. (A third project, in Mexico, contains 80 million tons of material containing gold and silver mineralization.)

Owners of the Louanna tailings project at Nakina, Ont., in northwestern Ontario are Cumo Resources and Pelham Gold `N’ Grain (ASE). Reserves totalling 140,000 tons grading 0.033 oz are reported. The property is also reported to contain 25,000 tons of dump material (or old development muck). Dump material

Not to be confused with the above tailings projects is an operation involving dump material under way in northwestern Ontario at Beardmore by Ateba Mines (TSE). Six months to a year worth of development muck from the Northern Empire, Leitch and Sturgeon River mines remains to be processed. Production was started up in 1987 with reserves of 455,000 tons grading 0.06 oz; processing, at a rate of 200 tons per day, is taking place at the Pan Empire mill.

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