Feasibility study is planned for Silbak/Missouri project

A decision on possible production may not be far away at the Silbak Premier/Big Missouri gold- silver project in northwestern British Columbia, Canacord Resources reports in a recent interim report.

The project is expected to undergo a feasibility study this summer.

Canacord is earning a 18.75% interest in the Westmin Resources managed open-pit project. Geological reserves on the Silbak Premier property stand at 6.4 million tons grading 0.07 oz gold per ton and 2.69 oz silver. At the Big Missouri project, located 6 km from the Silbak Premier property, mineab le reserves are estimated to be 1.8 million tons grading 0.09 oz gold and 1.17 oz silver.

Capital costs for the entire project are estimated to be $62 million(C) and payback would be two years with gold at $390(US) per oz and silver at $5.40. Cash operating costs are expected to be around $134(US) per oz gold and $3.06 silver during the first three years of production when higher grade material will be mined.

Annual production is estimated to be 80,000 oz gold and 560,000 oz silver during the first three years.

Meanwhile, underground exploration is under way at the DeSantis property, a former gold producer in the Timmins, Ont., camp, and at the former Canadaka silver mine in the Cobalt, Ont., camp.

At the DeSantis project, Canacord, Stan West Mining and Noranda Exploration are each earning a one-third interest. Three ore zones have been identified, the most important being an albitite zone with geologically inferred reserves of 503,259 tons grading 0.2 oz gold between the 800-ft and 1,800-ft levels. These figures surpass original estimates.

Underground exploration started early this year with a crosscut under way to a gold-bearing zone. The shaft and underground workings were dewatered and rehabilitated. This year’s $1.5-million underground program is designed to outline the extent of known gold zones.

At Canadaka, Canacord is earning a 30% interest in the 18 properties brought together as one project by Novamin Resources. Underground exploration continues in an effort to further delineate reserves.

Canacord is also involved in a number of other exploration projects across Canada.