Junior gold producer Bema Gold (TSE) is planning to use the bulk of proceeds of a $6-million brokered convertible debenture to complete the feasibility study on the Refugio gold project in northern Chile. Bema, already a producer at its modest-sized (24,000 gold equivalent oz.) Champagne heap leach mine in Idaho, is looking to bring on stream a bulk tonnage, open pit gold mining operation in Chile’s Maricunga district.
The company is earning a 50% interest from a Chilean partner in return for funding ongoing exploration and development of the Verde deposit to the feasibility stage. A preliminary reserve of some 105 million tons grading 0.032 oz. gold has already been delineated, with the oxide reserve accounting for 75 million tons grading 0.03 oz. gold per ton.
A second stage drill program is under way, consisting of 160,000 ft. of drilling. So far work has concentrated on the Verde deposit in order to establish northern and southern margins of the oxide deposit. The company said drilling to date has confirmed that gold mineralization continues to depths of at least 900 ft.
Metallurgical test work is also continuing to determine the best recovery method. Previous tests, however, suggest both the oxide and sulphide zones may be amenable to cyanide heap leach extraction.
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