Husky and SMDC to go underground

Equal partners Saskatchewan Mining Development Corp. and Husky Oil are planning an underground exploration program on their Laurel Lake gold property at Amisk Lake, Sask. Pending the results of the underground work and the completion of a project feasibility study, the Laurel Lake deposit could be in production sometime next year, the partners say.

Based on drill results accumulated over the past several years, smdc estimates that the Laurel deposit hosts reserves of 282,000 tons grading 0.44 oz gold and 2.2 oz silver per ton. These reserves are classified as probable and possible and occupy several zones extending from surface to a depth of 1,0 00 ft.

Beginning in June, a decline ramp will be driven to access the zones at the 130-ft and 262-ft levels. Underground work will focus on confirming continuity of the mineralized zones.