Waddy wins approval to bulk-sample Komis

Toronto-listed Waddy Lake Resources has won provincial approval to carry out bulk sampling at its Komis gold deposit in northern Saskatchewan.

To establish vertical and lateral grade continuity, the company plans to extract a 10,000-tonne bulk sample from two of the five known mineralized zones, namely the A and C zones. President Larry Lahusen told The Northern Miner these are the “optimum zones to test” since they are the largest and have the greatest drill density.

The program will also determine the best methodology for underground mining and sampling.

The deposit will be accessible via a decline ramp and crosscuts which will be established on the 400- and 350-metre levels (the surface is at an elevation of 420 metres). Construction of the decline and underground workings will begin immediately, employing 25-30 people.

Since the deposit contains abundant free gold, the ore will be processed using the gravity circuit at the Jolu mill, 75 km to the south. Lahusen says the circuit will be re-engineered to achieve optimum recoveries, which he anticipates will be in the 80-85% range. Processing will be environmentally safe since gravity processing does not require cyanide.

The underground and bulk sample program is expected to last 4-6 months, after which time a production decision will be made. Full production of 1.5 million grams (50,000 oz.) per year could be established by the third quarter of 1994. The current mining plan calls for production of 360 tonnes per day using a shrinkage method. Lahusen says cash costs are estimated at US$180 per oz.

In conjunction with the bulk sampling, underground drilling will also be carried out to expand reserves along strike and down-plunge. Minable reserves, in five separate zones, are estimated at 303,636 tonnes grading 16.02 grams gold per tonne, using a cutoff of 5.1 grams per tonne.