Construction work gets under way at Ketza River

Construction work has started on the Ketza River project of Canamax Resources and Pacific Trans Ocean Resources. Camp facilities are being installed, clearing of the mill site is under way, and road access is being established from Ross River, 50 miles to the north.

According to Canamax Vice- president H. Walter Sellmer, financing for the project has almost been concluded and it will involve something similar to a gold loan. Total cost of the project including working capital, is estimated at $21 million, the majority of which will be spent this year.

Because of the relatively short construction season, the tailings dam will have to be completed before freeze-up to ensure the mid-1988 production schedule is met. Foundation work for surface facilities is also critical and the buildings will have to be enclosed so internal equipment can be installed during the winter months. Several major items for the plant including a sag and ball mill have already been purchased and the power plant will be on site by fall, he predicts.

The underground portion of the mine should be around three-quarters developed by winter and ore will be stockpiled for mill tuneup. Mr Sellmer explains that the startup date could be sooner, assuming there are no major construction problems. But he would prefer to stick with the present production time frame.

He feels there is still plenty of exploration potential on the property, noting the joint venture will be spending another $1.5 million this year to find new reserves.