Drilling awakes Sleeping Giant

Partners Cambior (CBJ-T) and Aurizon Mines (ARZ-T) have upped gold reserves at the Sleeping Giant mine in northwestern Qubec, following a 265-hole, 64,600-metre drilling program.

The holes outlined three new gold lenses west of the mine’s shaft.

About 100 metres west of the shaft, lens 8 has been followed over 265 metres of drifts 120 metres of raises between levels 605, 665, and 725. Proven and probable are pegged at 218,000 tonnes averaging 12.1 grams of gold per tonne. Another 140,000 tonnes grading 13.4 grams gold are classified as inferred. The estimated employed a long-term gold price of US$300 per oz.

About 400 metres south-southwest of the shaft, lens 6 hosts a preliminary inferred resource of 22,000 tonnes grading 8.4 grams gold. The estimate is based on 59 holes totalling 11,500 metres. The lens remains open to the south and at depth. The gold structure was drilled over more than 150 metres on level 665.

Some 310 metres south of the shaft, lens 7 was tested by 18 holes. Eight of the holes returned between 7.6 and 24.4 grams gold over true thicknesses of 1.8 to 2.1 metres. These holes were grouped together in two distinct sectors about a hundred metres apart between levels 665 and 725. Further drilling, to extend the zone and complete a resource estimate by year-end , is planned for the next few months.

Cambior expects the 70% increase in the mineral reserves compared to the estimate at the beginning of this year, to extend the mine’s life by about two years to 2007. The discovery cost per ounce of gold of reserves and resources for these new lenses rings in at just US$17.

Aurizon’s president David Hall said, “We are encouraged with the discovery of these new zones that are in close proximity to the mine shaft and which have a grade that is approximately 25% higher than the ore grade achieved in the first half of 2001.”

Sleeping Giant yielded 77,961 oz. gold in 2000 at a cost of US$252 per oz., compared with 75,482 oz. at US$261 per oz. in 1999.

In other news, Cambior has completed the sale of its interest in the El Pachon copper project in Argentina to Noranda (NRD-T). Cambior will receive US$15 million — US$13 million at closing and US$2 million when Noranda makes a production decision, or within four years of closing, which ever comes first.

According to a 1997 feasibility study by Cambior, El Pachon’s reserves are estimated at 880 million tonnes grading 0.62% copper, at a cut-off grade of 0.4% copper and a price assumption of US$1 per lb. The deposit also includes molybdenum and precious metals credits, and is amenable to open pit mining.

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