Geologists from the British Columbia Geological Survey have cast doubt on the veracity of impressive gold grades reported by the two private companies developing the Bull River underground mine near Cranbrook.
Gallowai Metal Mining and affiliate Bul River Mineral raised an estimated $55 million to revive the past-producer, which, according to the company, hosts a “measured and indicated mineral resource of 5.3 million tonnes grading 2.25% copper, plus 36 grams silver and 12 grams gold per tonne.”
Government geologists visited the property last summer and collected samples from drill core and underground zones within the measured resource. Results of the 10 mineralized samples from drill core ranged from 0.03 gram to 4.7 grams, with a median value of 0.28 gram gold. The five samples collected underground returned values ranging from 0.16 to 1.13 grams, with a median value of 0.71 gram.
The results published by government geologists Trygve Hoy, Ronald Smyth and Raymond Lett are more consistent with government records of past production from 1971 to 1974, when Placid Oil (controlled by the Hunt Brothers) operated the Dalton mine property (as it was then known). The mill-recovered grade was 1.54% copper, 13.46 grams silver and 0.27 gram gold. Placid Oil’s published underground reserves were stated as being 664,000 tonnes containing 1.94% copper in two main zones (gold and silver were not reported).
“In summary,” their report states, “the Bull River deposit is fairly typical of the copper-silver quartz-vein deposit class. These veins are typically fault-controlled, commonly continuous for several hundred metres, and contain variable copper and silver content, with trace to minor gold.”
The report included details of an astonishing amount of work carried out by Gallowai and Bul River in the past few years. In 1998, for example, 6,508 metres of underground drilling, 1,144 metres of surface drilling and 367 metres of percussion drilling were carried out, along with advancement of an decline by 1,100 metres, and 725 metres of level advancement. Work in 1999 included extending the decline 554 metres, 1,424 metres of level development and 11,169 metres of underground drilling.
The Alberta Securities Commission recently ordered a hearing into the mine financings. The notice of hearing alleges that the funds were raised by unauthorized share distributions and that the companies and promoter Ross Hale Stanfield made misrepresentations and statements contrary to the public interest, including reports about the gold reserves.
Be the first to comment on "Regulators probe Bull River"