Kit expands gold resource at George Lake property

An independent resource calculation has expanded the size of the George Lake gold deposit of Kit Resources (KIT-T).

Situated near Bathurst Inlet, N.W.T., the deposit is now estimated to host 6.5 million tonnes averaging 9.76 grams gold per tonne, or 520,000 oz.

greater than previous calculations. The increase is attributable to newly outlined inferred resources, which now total 2.22 million tonnes of 9.9 grams gold; indicated resources remain unchanged at 4.2 million tonnes grading 9.8 grams gold.

A cutoff grade of 5 grams gold was used, with higher-grade assays cut to 34.29 grams gold.

Mineralization at George Lake is contained in six deposits that have been drill-tested by a total of 850 holes. Each of the deposits is within 300 metres of surface and open at depth.

Previous metallurgical testing of composite samples from each of the deposits achieved gold recovery rates of 93-95%. Conventional milling followed by carbon-in-pulp extraction was used during the tests.

Despite the project’s potential, Kit says the currently depressed market is preventing it from financing an infill drill program this year. Although the company does plan on renewing work once the market recovers, high transportation costs associated with this infrastructure-poor region will remain an obstacle to long-term success.

MRDI Canada carried out the resource studies, while Process Research Associates conducted the metallurgical tests.