This is one of at least three mining projects in Canada that will be recovering gold from old mine tailings this year. Located in the biggest gold camp in the country, it is also the biggest and potentially the most profitable such project. Erg, which is an affiliate of Giant Yellowknife Mines, has decided to treat one million tons of tailings every month to recover about 38,000 oz of the yellow metal in 1988 and about 103,000 oz in 1989. Total gold production costs are projected by Kilborn Engineering to be as low as $175(us) per oz.
When Giant acquired a 50.2% interest in Pamour last year, various changes in upper management resulted in considerable delays on the project. At presstime, foundations were being poured for the mill, which will be located on ground directly behind Giant’s Schumacher mill in Timmins.
Once the project is in operation, it is expected to have cost $75 million.
One high-pressure (360-lb-per-sq- in) water monitor has been set up in the Gillis Lake tailings area. Operators are working with the machine to make themselves familiar with its operation. By next spring, about 15 of these water guns will be used to generate flow rates of 2,200 cu m of tailings slurry every hour. The density of this slurry should be about 40% to 50% solids and will be pumped to the mill from a screening station.
Erg has access to enough tailings in the area to keep the mill running for about 16 years. Timmins Tailings Notebook Location: ……. Timmins, Ont. Major owner: ……. ERG Resources Commodity: ……. gold Production decision: ……. December, 1986 Start-up: ……. third quarter, 1988 Capital costs: ……. $75 million Reserves: ……. 151 million tons of tailings Mining method: ……. water monitors; slurry pumped to mill Milling: ……. flotation, regrind, cyanidation, carbon-in-pulp recovery Production rate: ……. 17,000 oz in 1988 (estimated) Production costs: ……. $175(US) per oz Major contractor: ……. Kilborn Engineering Status ……. preproduction
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