Vancouver — An updated resource estimate on Golden Goose Resources’ (GGR-V) Magino gold project may put some life back into the past-producing property near Wawa, Ont.
The latest report was completed by Timmins-based Reddick Consulting. It tabled a total measured resource of 5.8 million tons grading 0.09 oz. gold per ton, using a cutoff grade of 0.05 oz. gold. This is a marked improvement on the 20.5 million tons grading 0.05 oz. gold used in the 1998 scoping study.
However, the recent study concluded that a preliminary feasibility study needs to be completed and, if it was favourable, additional drilling or bulk sampling would be required to verify the gold grades.
Golden Goose has been attempting to advance the project for a number of years. The junior is eyeing the economic potential of a heap-leach, open-pit operation. Previous production targeted narrow, high-grade veins.
In the 1998 scoping study, the heap-leach scenario lowered the projected capital costs to $69.9 million from the $110.6 million pegged for conventional milling. Operating costs to produce 1 oz. gold held steady at US$191.
In 1999, Golden Goose carried out additional metallurgical test work. It showed that the gold recovery could be increased to 84% by crushing the ore-bearing material to a size of minus 1.7 mm. However, crushing to this size pushed the projected capital costs up to US$147 million for conventional milling and between US$88 million and US$97 million for a heap-leach operation.
The junior says that, in light of the tonnage and higher grade of the resource estimate, the prospects of capitalizing on the property are substantially enhanced.
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