Surface and underground drilling by
The resources, found in two zones, total 1.2 million tonnes running 4.25 grams gold per tonne, for just short of 162,000 oz. gold.
Based on a cutoff grade of 2 grams gold, measured and indicated resources at the P zone amount to 846,500 tonnes grading 4.4 grams gold over an average width of 3.1 metres. The zone measures about 650 metres horizontally and 150 metres vertically, and averages 5.5 metres in width. It lies 10-30 metres above the S-50 deposit, from which were mined 10.7 million tonnes averaging 4.81 grams gold per tonne.
The drilling program consisted of 38 holes and spanned 5,000 metres. Selected results from underground work on the P zone include the following:
o Hole 240 — 12.38 grams gold per tonne over a true thickness of 8.1 metres.
o Hole 740 – 11.53 grams gold over 6.4 metres.
o Hole 2309 — 5.03 grams over 14.5 metres.
o Hole 3681 – 3.84 grams over 22.6 metres.
None of the intersections run deeper than 90 metres below surface.
The R zone is home to an estimated resource of 332,200 tonnes averaging 3.86 grams over an average width of 6 metres. The zone stretches 410 metres horizontally and 150 metres vertically and has an average width of 30 metres. It is roughly 150 metres above S-50, and historical data suggest a depth of 480 metres below surface.
Drill highlights from the R zone include the following:
o Hole 902 — 3.54 grams gold over 2.3 metres;
o Hole 954 — 2.35 grams over 29.4 metres;
o Hole 1693 — 5.93 grams over 7.1 metres; and
o Hole 3095 — 4.49 grams over 11.3 metres.
The recent drilling focused on targets identified by owners in the 1970s and 1980s and targetted the hanging wall, between the surface pillar and the 330-metre level.
The drilling was the first phase of a $1.8-million program partly funded by $650,000 in financial assistance from Quebec’s Ministry of Natural Resources.
McWatters plans another 7,500 metres worth of follow-up drilling from ice early in 2003. Kiena is on Parker Island, just off the shore of Lac Demontigny, about 10 km west of Val d’Or.
McWatters halted production at Kiena in late September.
During the third quarter, Kiena produced 9,511 oz. gold at a cash operating cost of US$258 per oz. and a total production cost of US$287 per oz. During the comparable period of 2001 (prior to a major corporate restructuring in the first quarter of 2002), the mine yielded 18,332 oz. gold at a cash cost of US$223 per oz. and a total production cost of US$270 per oz.
On Christmas Eve 2002, McWatters reported it had started pouring gold again at its Sigma open pit operations, also in Val d’Or.
McWatters restarted milling activities at Sigma in late November, after completing construction work that led to an increase in milling capacity to 5,000 from 3,000 tonnes per day.
The company says the restart of milling operations has proceeded normally and that Sigma remains on track to resuming commerical production in January 2003. Milling is expected to reach 4,000 tonnes of ore per day and gradually increase to 5,000 tonnes in the last quarter of 2003.
Open-pit operations are proceeding according to plan, with turnover of material (ore, waste and overburden) estimated at 45,000 tonnes per day.
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