Golden Bear mine will not roar until 1997

A self-imposed deadline to acquire financing by May 10 for a proposed heap-leach operation at the Golden Bear mine in northwestern British Columbia was not met. As a result, North American Metals (VSE) and Wheaton River Minerals (TSE) have postponed production until the summer of 1997.

Wheaton, which controls the project through a 82% interest in property owner North American Metals, had hoped the project could be debt-financed to the tune of $11 million in 1996 and a further $3 million in 1997. The companies said several financial institutions were prevented from entering negotiations because the Ursa portion of the project has not yet been permitted.

The Ursa deposit hosts a reserve, minable by open-pit methods, estimated at 563,000 tons grading 0.2 oz. gold per ton at a stripping ratio of 6.6-to-1.

The other portion of the project is the Kodiak A open-pit deposit, for which permitting is essentially completed. Kodiak A contains 908,000 tons grading 0.096 oz. at a stripping ratio of 1-to-1.

A feasibility study concluded the deposits could produce 176,000 oz. over five years at a cash cost of US$224 per oz. The total cost of production is projected at US$258 per oz., including capital costs.

It is anticipated that permitting of the Ursa heap-leach pad site will be completed late this year.

In the meantime, construction of the Kodiak heap-leach pad will proceed in preparation for production in 1997, and an aggressive $1.6-million program of exploration drilling is planned.

The bulk of the drilling will be directed at 12 targets within the large carbonate unit hosting the Kodiak and Ursa deposits. Plans also call for development drilling of the Kodiak B deposit and the East Low Grade Stockpile.