Saskatchewan gold mine — Cameco to test Contact Lake

Following the recent rise in the gold price and a revised feasibility study, Cameco (TSE) proposes to develop an underground test mine at the Contact Lake gold deposit in Saskatchewan.

The deposit, 45 km northeast of La Ronge, is part of the Preview Lake property. Cameco owns 50% and is the project operator. Uranerz Exploration and Mining holds 30%, with the remaining 20% held by Westward Exploration (VSE).

The feasibility study identified probable minable reserves of 1.3 million tonnes grading 8.01 grams gold per tonne. Most of this occurs in the Bakos shear zone which is 10 to 35 metres wide and has a strike length of at least 1,200 metres. Gold occurs in quartz veins associated with pyrite and minor chalcopyrite and arsenopyrite.

The first phase of development, to begin in September, will include construction of a 5.5-km all-weather access road, ramping to the orebody, and selected stope development to substantiate drill reserves further. The program, anticipated to last eight months, will cost about $4.5 million. If the results of phase one are favorable, a second phase will be initiated which will lead to construction of a 750-ton-per-day mill and commercial production. The second phase, estimated to cost $33 million, would be completed by mid-1995.

Since the deposit is in the mineral exploration zone of a provincial park, the province had to approve an environmental impact statement for the project. Cameco is obtaining permits for clearing, construction and operation of the project.