Placer, MSV expect mining decision by May

Following the completion of a $2.1-million underground exploration program on the Eastmain project, partners Placer Dome Inc and MSV Resources are expected to reach a production decison by May. Located 185 miles northeast of Chibougamau near James Bay, Que., the Eastmain project hosts high grade reserves of one million tonnes grading 15.3 g per tonne (0.45 oz gold per ton.)

The program, which is expected to be completed by July, will also include metallurgical testing and a prefeasibility study, the partners say. Placer Dome and msv hold a 51% and 49% interest respectively.

Additional results from the 1987 underground program have also been received by the partners. Channel sampling along four longitudinal drifts through the deposit returned strong gold values across good strike sections and widths.

The first cut averaged 0.52 oz gold per ton across 536.4 ft and a width of 5.4 ft. A second cut graded 0.42 oz gold across 495.4 ft and 5.2 ft in width. The third cut along 364.1 ft of strike assayed 0.31 oz gold per ton across a width of 4.1 ft. The last section graded 0.34 oz gold across 370.7 ft and a width of 4.8 ft.

A major part of the next phase of underground exploration will in clude almost 40,000 ft of in fill drilling on an 80-ft spacing, John Morganti, exploration manager with Placer Dome, explained to The Northern Miner. “We expect to have new reserves calculated by early to mid May.” However, Mor ganti did note that the Placer Dome annual report could report a revised reserve figure which incorporates results from the 1987 exploration effort.

During the 1987 underground program, no ground control or dilution problems were encountered, Morganti says. The work, he adds, appears to have confirmed surface drill results.

A prefeasibility study being completed by Placer Dome engineers will consider the economic viability of running a hydro power line from the James Bay hydro electric plants to the site. The use of diesel fuel for power generation will also be studied. As a result of the isolated location, the Eastmain site is being serviced by aircraft. The feasibility will also consider the economics of servicing the site by road.

Based on a 500-ton-per-day milling rate and a grade of 0.4, the project could produce 65,000 oz of gold per year beginning in late 1989, The Northern Miner estimates.