European backers revive Carolin

The company has already started the first $200,000 phase of a planned $3-4 million(US) exploration and development program at the minesite and nearby properties.

The 1,500-ton-per-day Ladner Creek gold mine closed in September, 1984, after a dismal and unprofitable 2-year operating run. The underground mine was plagued by metallurgical and environmental problems which led to serious financial difficulties. Recoveries were about 50% and the mill head grade averaged only 0.09 oz gold per ton.

Carolin’s current management team headed by Michael Berns announced a control position in the company in early 1987. Several months later Carolin disassociated itself from claims by previous management that each ton of about 800,000 tons of tailings “will yield one ounce gold and 0.5 oz platinum at a cost of $100(US) per ton.”

These projections, received with immediate skepticism by industry experts and regulatory agencies, were based on unsubstantiated metallurgical testwork by Intergold USA.

Officials recently told The Northern Miner that the company’s financial position has improved sufficiently to begin a re-evaluation of the mine.

Robert Handfield, director, said recent metallurgical testwork indicates recoveries “in excess of 80%” can be achieved by changing the recovery process from a combined system of flotation and Merrill Crowe to carbon-in-leach.

But first Carolin hopes to increase (by at least 50%) existing proven and probable reserves of 900,000 tons grading about 0.12 oz gold. Longhole open stope and room-and-pillar mining methods are envisioned should producti on be feasible.

Ongoing exploration programs will involve work on the 100% owned minesite property, and on more recently acquired properties along the Coquihalla gold belt. Carolin’s land position now totals some 14,000 acres.

Carolin’s initial financing was for $875,000(US). However, the syndicate has an option to fund an additional $625,000 in exchange for Carolin’s secured, convertible debenture.

Handfield conceded that the company’s efforts would likely be met with skepticism in view of its clouded corporate past and the mine’s unsatisfactory operating history.

“We can’t guarantee the mine will go back into production,” he said. “All we can do is make a serious effort to see if this can be achieved.”

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