Breakwater’s O’Brien find prompts underground study

The company recently completed a 30,000-ft drilling program on the 100%-owned property which it acquired complete with a 300- ton-per-day mill built in the late 1970s. O’Brien is a former producer that turned out almost 600,000 oz gold from 1933-1956 at an average grade of 0.467 oz gold per ton.

The new 36E zone is located about 2,000 ft east of the O’Brien No 2 shaft in a general area where significant gold intersections were first encountered in a 1987 drill program.

Alfred Burgoyne, senior vice- president of Breakwater, said ten distinct, en-echelon gold-bearing quartz veins were delineated along a strike length of 1,300 ft and to a depth of 1,200 ft. The veins are described as similar to those previously mined, although Burgoyne said the mineralogy is different in that the new veins contain little or no arsenic.

Based on the recent drill results, Breakwater’s preliminary estimate indicates a mineral inventory in the drill-indicated category of 275,290 tons grading 0.35 oz gold uncut, or 0.24 oz cut, with the zone wide open at depth.

That would be in addition to the mineral inventory of 279,000 tons grading 0.17 oz gold (probable and possible) within the area of the old mine workings. These reserves were calculated by a previous operator based on a 1983 work program.

If a decision for an underground program is made, the new area would be accessed from the existing O’Brien No 2 shaft. The company is looking at a combined surface and underground drill program to prove up reserves in the 36E zone.

Burgoyne told The Northern Miner the recent discovery is significant in a broader context in that the O’Brien mill could potentially process ore from two other advanced properties held by Breakwater in the immediate area.

“The veins at O’Brien are relatively narrow and would require a lot of stopes,” said Burgoyne, pointing out that while it might be possible to produce some 200 tons per day at O’Brien, re-opening of the mill and project viability would likely depend on the consistent supply of additional mill feed from the two other projects.

As operator and 51% owner, Breakwater recently completed an underground exploration program at the East Amphi project near Malartic, Que., a joint venture with Bond Gold Canada (TSE).

A new mineral inventory is now being compiled that is likely to enhance the previously reported mineral inventory of 585,500 tons grading 0.25 oz gold based on a 1988 work program.

The recently-completed 92-hole underground drill program was designed to confirm grades, thickness and potential tonnages in the Main and Y zones. Both were tested along a strike length of 623 ft, and over a vertical extent of 311 ft centred on the existing underground levels.

While the new mineral inventory estimate is being prepared, a 10,500-ft drill program is in progress to further delineate the down dip extent of the Y2 and Main zones to about the 984 ft level.

Breakwater is also currently exploring its Tonawanda project near Cadillac for open pit reserves that could potentially provide additional feed for the O’Brien mill.

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