At the annual meeting of River Gold Mines (TSE), shareholders were told that bringing the Eagle River gold project into production is the company’s top priority.
“We have signed a lease agreement for the Magnacon mill and aim to start production in late August or early September,” said President Conrad Hache.
The project is 50 km west of Wawa, Ont., and a 17-km haul road has been built, linking the site to the Magnacon mill.
River Gold, which owns the project, expects to produce 15,000 oz. gold this year, and hopes to expand to about 40,000 oz. in 1996 and beyond.
The project hosts diluted reserves (in all categories) of 816,689 tonnes grading 14.1 grams gold per tonne. The company hopes to expand reserves by exploration at depth, and by testing other zones.
Eagle River consists of a series of lenses in eight zones. Ground conditions are described as good, and the company plans to use a 1.2-metre mining width to mine selectively the high-grade zones that are accessible by ramp. The mining rate would be about 300 tonnes per day.
Very little drilling has been carried out below the 250-metre level. However, enough reserves have been defined in the upper levels to support mining until 1999. Thereafter, shaft-sinking would be required in order to reach deeper reserves.
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